Babcock sells power business to M Group Services in £50m deal
The London-based aerospace, defence and engineering firm has sealed the disposal as part of efforts to streamline its operations.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Babcock International has completed the sale of its power generation business to M Group Services for £50 million.
The London-based aerospace, defence and engineering firm has sealed the disposal as part of efforts to streamline its operations.
The power business provides engineering services in the power generation and distribution sector and counts National Grid Scottish Power Energy Networks and Western Power Distribution among its clients.
Babcock said the operation is part of its Land arm and reported total revenues of £70 million and profit before tax and interest of around £7 million in the year to March 31.
Chief executive David Lockwood said: “I’m delighted that we continue to make real strides in delivering our plan of streamlining the group.
“The business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations.”
The sale forms part of Mr Lockwood’s plan to simplify Babcock’s structure and improve the firm’s environmental, social and corporate governance.
As part of the strategy, the company sold a consultancy which has contracts with the Ministry of Defence in August.
It pocketed around £293 million from the sale of the Frazer-Nash Consultancy to KBR, an American engineering giant.
Shares in the company moved 0.6% higher to 320.6p in early trading on Friday.