Shropshire Star

MoD Donnington: Babcock enjoys early success at the site

Industrial giant Babcock has ramped up its role at MoD Donnington after hailing the early success of its programme at the site.

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Defence Support Group, which employs around 850 people at the site in Telford, was acquired by Babcock for £140 million in December 2014, sealing £2 billion of work in the process.

In its annual results for the year ending March 31, Babcock praised the performance of the division, which looks after the Armed Forces' equipment, and said it had already begun to extend the programme.

Babcock said revenues for the period improved by eight per cent to £4.84 billion last year, on the back of new contract awards, expansion within existing contracts, and the renewal of contracts with enhanced scope.

"The integration of the Defence Support Group has progressed very well and, as a result of all milestones being met in the first six months, our scope has been increased to encompass additional responsibility for the procurement of spares and repairs earlier than initially expected," the company said in a statement accompanying the results.

Babcock's Defence and Security division's revenue was four per cent higher at £843.1 million, with operating profits two per cent ahead at £131.3 million.

The price paid for DSG has been revealed to have increased by £7.4 million over the year, after it completed final accounts for the business.

They show that the total value of the business was £176.2 million.

The deal was part of a £2 billion string of buyouts in that year, but 2015's growth was entirely organic, with Babcock drawing its spending spree to a close.

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