Defence and aerospace giant Babcock International Group Plc has warned that the amount of cash at its disposal this year is expected to be “significantly negative” due to mounting costs and spending.
The FTSE-250 company, which operates Plymouth’s enormous Devonport Dockyard, said free cash flow - the amount of cash available to pay such things as creditors and dividends - has been hit by soaring outgoings.
In a statement to investors it cited additional pension contributions, restructuring costs, and investments in facilities and IT upgrades as drains on its cash.
