Babcock takes a beating from investors

FTSE 250 aerospace and defence company Babcock (LON:BAB) has seen its share price drop by 4.23% to 552.20p (as of 13:40 GMT) after it warned that underlying group revenues would fall this year. The firm said the drop was due to disposals, a major QEC contract step-down, low rail activity and South African power outages. Management also reported that additional exceptional costs would be incurred during the second half due to restructuring and pensions changes.

Chief executive Archie Bethel commented: “The Group’s underlying earnings and cash generation outlook for the current year is unchanged. We continue to make good operational and strategic progress and won some great new contracts in the period including an expansion into the aerial emergency services market in North America, a significant win in Australia and securing the next ten years for our Rail business. Whilst preparing for the UK exiting the EU and for our QEC and Magnox contracts coming to an end, we continue to grow our business across our three key markets of defence, aerial emergency services and nuclear“.