Babcock Intl (LON:BAB) said its expectations for underlying revenue and earnings were unchanged after it missed out on an armoured vehicle maintenance contract, calling a Sunday Times article on the deal "misleading".
The UK's Ministry of Defence (MoD) said late on Saturday it had decided not to proceed with a proposal from Babcock related to armoured vehicles.
READ: Babcock Intl. cuts full-year revenue growth target due to temporary slowdown in defence, marine work
In a statement today, the FTSE 250-listed engineering group said it had recently put forward a proposal related to a number of different vehicle types, but the MOD had not taken this up, instead deciding to focus on its core Defence Support Group (DSG) contract.
It added, however, that the Sunday Times was confused about the work affected by the MoD's decision.
Babcock said: "There has been no change to the company's expectations for underlying revenue and underlying earnings as detailed in its recent trading statement, and no change to the bid pipeline.”
"The impact of slower than anticipated spares procurement activity relating to DSG was included in the guidance issued at the time.”
It concluded: “We look forward to continuing to work closely with the Army and MOD to deliver the transformation in vehicle availability and performance which is at the core of our long-term Babcock DSG transformation contract.”