© The Financial Times Ltd 2015 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
April 1, 2014 5:49 pm
Babcock International has scored its second big contract win in two days, nailing a deal worth about £800m to manage the London Fire Brigade’s 500 vehicles for the next 21 years.
The London Fire Brigade deal will see Babcock look after 50,000 pieces of equipment and invest in operational premises in Ruislip and a new site in Greenwich. The company, which already provides training for the fire brigade, has been operating the contract on an interim basis since November 2012.
It comes just a day after the company won the £7bn job of decommissioning Britain’s old nuclear power plants – one of the largest and most sensitive public sector contracts to be awarded in the UK.
Caroline de La Soujeole, analyst at Cantor Fitzgerald, estimated a contract value of £12m to £20m a year on the fire brigade deal. “These contracts show that Babcock’s strategy to diversify away from its core defence-related work is proving successful and that the UK’s government appetite for outsourcing remains strong,” she said, issuing a buy note on the stock.
Babcock’s shares rose 3 per cent to £13.87, its biggest two-day gain since May last year.
Copyright The Financial Times Limited 2015. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.
Sign up for email briefings to stay up to date on topics you are interested in