Is Babcock the Next Carillion?

After Carillion and now Capita's woes, the likes of Babcock, Mitie and Serco are under the spotlight. Lowland managers James Henderson and Laura Foll discuss their reasons for buying Babcock

David Brenchley 31 January, 2018 | 12:38AM

Babcock's shares have de-rated as a result of other companies' failings

The outsourcing of essential public services to publicly listed companies run for shareholders’ profit was once again thrown into the spotlight on Wednesday after Capita’s (CPI) profits warning and rights issue.

Capita’s problems come just two weeks after the collapse of fellow outsourcer Carillion, which counted the UK Government as one of its clients.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Babcock International Group PLC284.60 GBX-0.04
Capita PLC40.50 GBX6.80
Lowland Ord961.00 GBX0.73
MITIE Group PLC84.70 GBX0.83
Serco Group PLC157.20 GBX0.77
TB Evenlode Income A Inc  

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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