Babcock International Group PLC Response to speculation and update on trading (9771G)
12 November 2018 - 6:00PM
UK Regulatory
TIDMBAB
RNS Number : 9771G
Babcock International Group PLC
12 November 2018
12 November 2018
Babcock International Group PLC (Babcock or the Group)
Response to speculation and update on trading
Babcock, the engineering services company, is issuing this
statement to address recent speculation following the release of a
report by the anonymous and so far untraceable Boatman Capital.
This report included many false and malicious statements which the
Group strongly refutes. At the same time, the Group continues to
seek to discover who is behind Boatman Capital.
Ministry of Defence
Babcock has been a key supplier of critical services to the
Ministry of Defence (MOD) for over thirty years and we are
currently its second largest supplier, providing critical assets
and support across the UK's armed forces. We meet with the MOD on a
regular basis and our relationship remains as strong as ever.
Babcock is one of the 34 top cross-Government Strategic Suppliers,
who are continuously monitored, and we are one of the MOD's top 19
Strategic Suppliers. We are also a participant in the Government's
Strategic Partnering Programme. In total, Babcock is currently
delivering 128 contracts for the UK Government, with future
opportunities continuing to form a key part of our bidding
pipeline.
A UK Government spokesperson said:
"We monitor the health of all of our strategic suppliers,
including Babcock, and remain committed to working with them on a
wide range of programmes.
Babcock plays a key part in equipping our world leading armed
forces and the MOD spent more than GBP1.7 billion with the company
last year, supporting thousands of jobs across the nation."
Trading
Our most recent trading update, issued on 19 September 2018,
confirmed that underlying earnings were in line with expectations
and we confirmed our outlook for the financial year ending 31 March
2019. We gave an update on our programme of exiting a number of
small, low-margin businesses, which includes the Appledore
shipyard, and we announced that we are reshaping our oil and gas
business. As previously announced, we will provide an update on
these activities at our half year results.
The Board and Executive Management remain firmly focused on
delivering for our customers and shareholders. We can confirm that
the Group continues to enjoy a healthy financial position with cash
generation in line with expectations for the half year ending 30
September 2018. We continue to expect to reduce our debt during the
year, with our net debt to EBITDA ratio expected to be around 1.4
times by March 2019 and around 1.1 times by March 2020.
We will publish our half year results on 21 November 2018, when
we look forward to providing a detailed update on our
performance.
Ends
For further information please contact:
Babcock International Group PLC
Simon McGough Kate Hill
Director of Investor Relations Group Director of
Communications
Tel: +44 (0)20 3 235 5592 Tel: +44 (0)20 7355 5312
FTI Consulting
Andrew Lorenz
Nick Hasell
Tel: +44 (0)20 3737 1340
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END
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