Babcock
It is the dog that didn’t bark. Babcock is the large government contractor that has been causing the analyst community the three-pipe problem of why it hasn’t followed other outsourcing giants — Capita, Serco, Mitie, Interserve and, of course, Carillion — into financial crisis. The reason this dog didn’t bark, as Sherlock Holmes would have deduced, is that it didn’t have to.
Many analysts have been wondering for years when Babcock’s “moment” of crisis would come.
Babcock has long argued that to link it with lower-margin outsourcers who clean the floors at public sector offices or do back office government number-crunching is a misreading of the facts.
Instead, Babcock provides engineering services that keep the air force flying and the navy’s boats floating. Its