Babcock International Group PLC
02 June 2005
2 June 2005
Babcock International Group PLC
EXTENSION OF PARTNERING AGREEMENT AT HM NAVAL BASE CLYDE
Babcock International Group PLC, the support services company, is pleased to
announce that the Ministry of Defence has awarded Babcock Naval Services (BNS) a
5 1/2 year extension to the partnering agreement at HM Naval Base Clyde. The
contract extension is valued at circa £400 million and will extend the
relationship between BNS and the MoD at HM Naval Base Clyde until 2013. The
extension raises the total value of Babcock's order book to £1.6 billion.
The original partnering agreement came into effect in September 2002 and saw BNS
take over responsibility for the provision of engineering support, facilities
management and other specialist support services to the MoD and Royal Navy
covering an initial five-year period through to August 2007. During the first 2
1/2 years of this contract BNS has successfully reduced costs and improved
service levels and it is this success that has resulted in the MoD opting to
award an extension to the contract a year earlier than planned. The award of
this extension to the contract brings the total value of the partnering
agreement to circa £825 million.
Peter Rogers, Chief Executive of Babcock International Group PLC said:
'This early extension is testimony to the performance of the Babcock team and
the strength of the partnering relationship with the MoD.'
Naval Base Commander at HM Naval Base Clyde, Commodore Carolyn Stait, RN, added:
'We are now fully committed to our future relationship with Babcock Naval
Services who have shown in the last 2 years just how efficient and cost
effective a MOD/Commercial partnership can be. This produces real results for
operational effectiveness and value for money for the taxpayer. I am genuinely
excited about what this contract extension means for the Base and for our
ability to support the fleet'.
For further details please contact:
Babcock International Group PLC
Peter Rogers, Chief Executive 020 7291 5000
Financial Dynamics
Rob Gurner 020 7269 7221
Notes to Editors
Key facts about the partnering contract:
• The original Clyde Industrial Partnering contract was signed on 30th
May 2002 and successfully came into effect on 1st September 2002
• In its first two years of operation, the partnership delivered
significant savings, resulting in BNS securing the Bank of Scotland/Insider
magazine Scottish PFI/PPP of the Year in 2003
• 1,700 civilian posts were moved to BNS under the Transfer of
Undertaking (Protection of Employment) (TUPE) regulations
• 300 Royal Navy personnel work within BNS
• Some 50 MOD civilian and service personnel are embedded within the BNS
management structure to satisfy the requirements of the site nuclear
Authorisee, an arrangement agreed with the independent nuclear regulator
About Babcock International Group PLC:
Babcock International Group PLC is a support services business providing a range
of technical, training and facilities management services to the defence and
civil sectors. In the year to 31 March 2004 sales from continuing business were
£438 million. In June 2004 Babcock acquired the Peterhouse Group, which had
continuing sales (excluding rail maintenance) of approximately £26O million.
The Group operates across six business segments:
Defence Services, supplying facilities management, equipment support and
training services to the armed forces.
Technical Services, providing engineering and logistical support to both the
defence and civil sectors in the UK.
Engineering and Plant Services supplying design, installation and maintenance
support to the energy sector in Africa and the US. It also holds the Volvo
franchise for construction equipment in Southern Africa.
Rail, providing design, renewal and installation services for the UK rail
infrastructure.
Networks, supporting the design, maintenance and renewal of power transmission
and cellular telecommunications networks in the UK.
Health, Safety and Environmental services, providing surveying and monitoring
services to utility companies and safety equipment and training to a range of
sectors.
Babcock's head office is in London and the Company's shares are quoted on the
London Stock Exchange. For further information, please visit Babcock's website
at www.babcock.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.