Babcock held by rail 'hiatus' in UK

Defence and engineering group Babcock today said a “hiatus” in rail signalling contracts was holding back a better-than-expected performance across the rest of the business.

The firm said its rail business had been hit by delays in the release of signalling contracts, together with the impact of Network Rail’s decision to reduce the number of track maintenance suppliers.

But Babcock said a string of contract wins worth £75m (€110m) since the beginning of April had boosted overall performance, adding that full year trading was still in line with expectations despite the rail division troubles.

Babcock became the UK’s largest naval maintenance firm this year after buying Plymouth’s Devonport naval dockyard for £350m (€515m).

The group continued its acquisition trail with the purchase of International Nuclear Solutions, announced earlier this month.