Babcock sells energy business to M Group Services for £50m

Babcock International has completed the sale of its power generation business to M Group Services for £50 million.

The aerospace, defense and engineering company sealed the elimination as part of efforts to streamline its operations.

The electricity business provides engineering services in the electricity generation and distribution sector and counts National Grid and Scottish Power Energy Networks among its customers.

Babcock said the operation was part of its land arm and reported total revenue of £70m and profit before tax and interest of around £7m in the year to 31 March.

Managing Director David Lockwood said: “I am delighted that we continue to make real progress in delivering on our group streamlining plan – the business is a perfect fit for M Group Services, and I wish them well as they they continue to develop their operations. »

The sale is part of its plan to simplify Babcock’s structure and improve the company’s environmental, social and corporate governance.

As part of the strategy, the company sold Frazer-Nash Consultancy – which has contracts with the Ministry of Defense – to US engineering firm KBR in August for around £293m.

The company’s shares rose 0.6% to 320.6 pence in early trading on Friday.

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Rosemary C. Kearney