“Babcock has set aside $7.285 million in the form of “an exceptional provision” for “loss-making contracts where unavoidable costs of meeting obligations under these contracts exceed the associated expected future net benefits.”
Questions need to be asked. With regard to the UK division, when bidding on the TOTAL work, these costs were not unavoidable. They could simply be avoided by not bidding, or bidding at a sensible rate.
Looking ahead, would this put TUPE into question? (A company knowingly taking on loss making contracts with the view of selling up.)