Babcock expects more demand for outsourcing

 

Defence services group Babcock International said it expects the current review of defence spending to increase the demand for outsourcing.

It said the planned Government cuts had led to a slowdown in the number of contracts coming out to tender but it has a £12bn order book and is bidding for business valued at £5bn.

The company is aiming for savings of £50m a year from its merger with VT Group, completed in July.

It will release its first-half results on November 9.

The shares rose 24p to 575.5p.