Babcock hits new high on BBC contract win

Babcock International, the engineering and support services firm, hit a 52-week high on Thursday morning after announcing two contract wins.

The BBC World Service is to pay Babcock £200m over the next ten years for providing services related to the transmission and distribution of radio and television broadcasts.

Babcock has been working with Britain's public service broadcaster for the last 15 years and the company's Chief Executive, Peter Rogers, said of the deal:

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"We look forward to building on this relationship to drive efficiencies and help (the BBC) find the right solutions for the challenges it faces".

Babcock has also won a £125m contract with Devon County Council to provide school improvement, workforce training and "curriculum enrichment" services over the next seven years.

Babcock has had an impressive last 12 months, gaining 29% since January last year. The shares rose 7.5p to 740p on the announcement of the contract wins.