Babcock wins RAF contracts worth £160m

Engineering services company Babcock has been awarded three “significant” new regional contracts by the UK Ministry of Defence to provide technical support services to the Royal Air Force.

The contracts, under the Technical Support Services Provision (TSSP) for 17 sites across the whole of the UK, are worth around £160m in total for the first five years for all three regions, with options for a further two one-year extensions which could increase the value to around £220m. They include the provision of aircraft maintenance and operations, airfield support and operations, vehicle fleet logistics, and specialist armoury and engineering support.

Chief executive Archie Bethel said: "I am delighted Babcock has been selected to deliver this critical service across the RAF operational estate. These contracts cement our position as a key support partner to the RAF. We will deliver excellent integrated service capability as well as significant cost savings to our customer."

Meanwhile, defence minister Harriett Baldwin said: "We are investing this £160m in ensuring these RAF bases across the country continue to get the expert support they deserve, servicing equipment for the frontline and supporting our world-beating capability across the board. This pragmatic approach will ensure we are looking after our famous air force at home, as they protect our interests both here and around the globe."

At 1505 GMT, the shares were up 2.8% to 762p.