Aerospace and defence engineer Babcock said on Wednesday that it had agreed to a two‑month extension to its Future Maritime Support Programme bridging agreement with the UK's Ministry of Defence, ensuring continuity of key naval support work while the two sides finalise a long‑term successor deal.
Source: Sharecast
Babcock said the extension, which begins 1 October, will maintain delivery of critical naval‑base services and support for Britain's nuclear submarine fleet as negotiations continue on the gateway agreement.
The FTSE 100-listed firm said the gateway agreement will form the long‑term framework for its role as the sole provider of in‑service submarine support to the Royal Navy, underpinning the UK's continuous at sea deterrent and the Navy's shift towards heightened warfighting readiness.
Babcock added that the deal will also support the government's long‑term investment plans for the submarine enterprise.
As of 0830 BST, Babcock shares were up 1.05% at 1,009.50p.
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