Babcock wins 'significant' Italian firefighting contract

The rebid, due to start next month, is worth around £160m for the first four years and includes an option for a further four-year extension which could up the value to around £320m.

Chief executive Archie Bethel said: "This is a flagship contract for Babcock's Aviation business and further demonstrates our international aerial firefighting capability. Aerial firefighting is a vital and life-saving service, as we saw from the devastating fires Europe experienced in 2017. I am delighted Babcock has again been chosen to deliver this nationally important contract across Italy."

The company also announced that its aviation business has won a new, four-year contract in Sweden worth up to £34m, to operate a patient transfer service for the people of Västra Götaland County. This is a new emergency medical services contract, which will see the group operate a specially-configured AW169 from a new base in Gothenburg.

The contract includes options for two-year extensions.

At 0940 GMT the shares were down 0.2% to 749.20p.