Home Brexit Babcock will take a £10m tax hit over Brexit

Babcock will take a £10m tax hit over Brexit

by Sarah Dunsby
26th Feb 19 9:01 am

Babcock the infrastructure giant has announced they are to take an additional £10m tax hit, over Brexit.

The company expects costs relating to the restructuring of the groups aerial emergency services will create the costs.

Total revenue is thought to drop to £5.2bn compared with £5.36bn in the previous year.

Share’s dipped by 7.6% early morning Tuesday.

Archie Bethel, chief executive said, “We continue to make good operational and strategic progress and won some great new contracts in the period including an expansion into the aerial emergency services market in North America, a significant win in Australia and securing the next 10-years for our rail business.

“Whilst preparing for the UK exiting the EU and for our QEC and Magnox contracts coming to an end, we continue to grow our business across our three key markets of defence, aerial emergency services and nuclear.”

Analysts at Shore Capital said, “The short-term performance of Babcock remains frustrating for investors, in our view, with additional charges and some revenue weakness from changing structure impacting operations.

“The long-term positioning still remains sound, in our view. We expect stronger growth to resume in due course.”

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