Babcock International Group PLC
19 July 2005
Date: Tuesday 19 July 2005
Contact: Peter Rogers, Chief Executive Richard Mountain
Babcock International Group PLC Financial Dynamics
Telephone: 020 7291 5000 Telephone: 020 7269 7291
Babcock International Group PLC announces contract awards for Rail and Africa
businesses
Babcock International Group PLC (Babcock), following its recent success in
securing the Eastern Regional Prime Contract, is pleased to announce a number of
further contract awards.
Through its First Engineering Rail business, Babcock has won a contract from
Network Rail to operate the 'System 3' High Output Track Renewals, while a
three-year extension for the 'System 2' has also been gained. These contracts
were awarded on the basis of the demonstrable efficiency gains achieved during
the first year of operation of 'System 2'. Both contracts were secured through
First Engineering's joint venture First Swietelsky, and between them will
operate on the East Coast main line and the Great Western Region. The value of
these contracts is estimated to be some £50 million per annum until 2009.
First Engineering has also secured some £10 million of contracts for Signalling
upgrade and replacement in Network Rail's North Western and Scottish regions.
In addition to the above, Babcock Africa has been awarded a contract for the
first stages of a new co-generation plant for Mondi, a subsidiary of Anglo
American. This will be among the most advanced plants of its type in South
Africa and the initial contract is valued at some £17 million.
Commenting on the new contracts, Peter Rogers, Chief Executive of Babcock said:
'These contract wins demonstrate the high level of expertise within our
businesses. In particular the rail contract wins demonstrate our ability to
partner with our customers and to succeed in supporting the most complex of
operations'.
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Notes to editors:
About Babcock International Group PLC
Babcock International Group PLC is an asset management business. We manage fixed
infrastructure and mobile assets. Babcock integrates labour, technical
capabilities, systems and supply chain partners to meet the outsourcing needs of
customers for 'mission-critical' capabilities.
In the year to 31 March 2005 sales from continuing business were £760 million.
In June 2004 Babcock acquired the Peterhouse Group which brought; Rail, Networks
and Health, Safety and Environmental to the Group.
The Group operates across five core 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.
Babcock's head office is in London and the Company's shares are quoted on the
London Stock Exchange in the support services sector (EPIC:BAB). 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
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