Babcock is set to make a decision on the fate of its Appledore shipyard next month, with 200 workers facing an uncertain future.
Work has dried up at the north Devon site, with only one order for the Irish coast guard remaining, the Sunday Times reported.
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“Babcock is in the final stages of successfully delivering the fourth offshore patrol vessel for the Irish Naval Service, LÉ George Bernard Shaw. As that programme comes to an end, we are reviewing the options for our business at Appledore,” a spokesperson told City A.M.
The FTSE 250 company’s already struggling shares dropped four per cent after a report last weekend from Boatman Capital Research.
The previously unknown and anonymous analyst said that Babcock has a “challenging” relationship with the Ministry of Defence, it’s largest customer.
The site’s fate will be decided at a board meeting next month.