Babcock wins a 5-year contract for Royal Navy air stations engineering services.

Babcock’s bid was strengthened by the Group’s experience of supporting rotary wing platforms in both its Defence & Security division and MCS business. The AESAS contract is to provide full service delivery by 1 January 2016 and will involve the TUPE transfer of a significant number of skilled staff to Babcock.

Additionally, the Group has seen further growth within its existing DSG contract to provide maintenance, repair, overhaul and storage of a range of current military vehicles and light weapons for the UK MoD.

As a result of successfully meeting an early milestone in the service provision and output based contract which began on 1 April 2015, Babcock will increase its responsibility for managing the procurement of equipment spares and repairables on behalf of the MoD, to include transacting with suppliers directly.

In combination, the two contracts will generate an additional £100 million (US$ 154 mn) of revenue per year.

Peter Rogers, Babcock Chief Executive, said: "We are delighted to continue to grow our partnership with the Ministry of Defence, both in the air and on the ground. Babcock is committed to delivering the improved performance levels, enhanced operational capability and increased cost effectiveness which are so critical for our customer."