Babcock set to rack up £1bn losses | Business
Babcock International is set to plunge more than £ 1 billion into the red after the defense company’s new management mandated a drastic depreciation of the company and the profitability of its contracts.
The company is also executing 1,000 layoffs, mostly middle management, with 850 in the UK.
In an unscheduled statement a few weeks prior to a planned update to a review of the deal, Babcock said it had “found impairments and charges totaling around £ 1.7 billion.”
Of that total, £ 1 billion will come from amortization of goodwill – effectively correcting an overvaluation – for £ 3 billion acquisitions made over the past decade. This is on top of the profits from the operational year 2020