Babcock International Group PLC
23 March 2006
23 March 2006
Response to VT Group plc and BAE Systems plc announcements
Babcock International Group plc ('Babcock') notes today's announcements by VT
Group plc ('VT') and BAE Systems plc ('BAE Systems') that these two companies
have been exploring the possibility of a bid for Babcock and confirms that no
approach has been received.
Over the last five years, Babcock has transformed itself from an engineering
conglomerate into a focused support services and asset management business,
managing fixed infrastructure and mobile assets. This transformation has
generated substantial shareholder value including an increase in Babcock's share
price from 59p to more than 250p prior to today's announcements.
The Group currently has an order book in excess of £2bn, and in December 2005
was selected as a member of the Aircraft Carrier Alliance to construct the bow
block and carry out the associated detailed design. In addition Babcock will
support the Alliance in procurement and other elements of the programme.
In Babcock's half year statement of 15 November 2005, the company stated that
the first half of the year had fully met its expectations, with underlying
operating profit increasing by 21% to £25.2 million. Peter Rogers, Chief
Executive, said, 'we expect further progress to be made in the second half and
the full year result to be ahead of our original expectations.'
In line with its regular practice, Babcock will make a trading statement next
week prior to entering its close period for the full year ending 31 March 2006.
For further information please contact:
Babcock International Group PLC
Gordon Campbell, Chairman 020 7269 7291
Financial Dynamics
Andrew Lorenz / Susanne Walker 020 7269 7291
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 £745 million.
In June 2004 Babcock acquired the Peterhouse Group which brought; Rail and
Networks 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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