Mark Leftly: It’s not going to say so but Babcock has done it again
Westminster Outlook Babcock International should probably start throwing a few quid my way given how often I’m plugging it.
At the start of the year, the government contractor was my top share tip as I felt the Coalition would hand Babcock a swathe of outsourcing deals while rivals Serco and G4S recovered from their scandals.
Last week I argued that the company’s struggling share price was ridiculous given its £18.5bn order backlog.
Now I’ve heard that Babcock has beaten the American group Leidos to a Ministry of Defence deal called the Logistic Commodities and Services Transformation, a £1bn-a-year spending programme on non-military essentials like nuts and bolts.
The reason no announcement has yet been made is rumoured to be that Babcock has won so much government work this year – including the £7bn Magnox nuclear decommissioning contract – that it would be awkward to admit it has scooped another big contract.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies