14th Jul 2006 07:00
Babcock International Group PLC14 July 2006 14 July 2006 BABCOCK INTERNATIONAL GROUP PLC AGM STATEMENT Gordon Campbell, Chairman of Babcock, the support services company, will makethe following statement at today's Annual General Meeting: "As announced in the preliminary results in May, 2005/6 was a record year forBabcock, and the fourth successive year of double digit profit growth. "The current financial year has started very satisfactorily and trading remainscomfortably in line with our expectations at the time of the preliminary resultsannouncement. Our recent acquisitions (Alstec and Powerlines) are eachperforming ahead of our planning assumptions and significant opportunities existfor each of them. "On 10 May, BAE Systems and VT Group announced that they no longer intended tomake an offer for Babcock, having announced in March that they were consideringa bid. This situation served to highlight the underlying value of Babcock andwe are pleased that the shares responded positively and that the share price hasstabilised at a higher level. "Babcock continues its discussions with the Ministry of Defence about variousoptions for both submarine and surface ship support in relation to therestructuring of the UK maritime sector. Babcock will support such arestructuring insofar as it is in the interests of Babcock's shareholders. "With the visibility provided by a strong order book, of some three times 2005/6turnover, the Board remains confident in the Group's prospects in both the shortand medium term and consequently we are pleased to be able to recommend asignificantly increased final dividend of 4.25 p/share giving a total dividendfor the year ending March 2006 of 6.0 p/share, an increase of 50% on theprevious year." - Ends - Enquiries: Babcock International Group PLC 020 7291 5000Peter Rogers (Chief Executive)Bill Tame (Finance Director) Financial Dynamics 020 7269 7121Susanne Walker / Richard Mountain Notes to editors: About Babcock International Group PLCBabcock International Group PLC is an asset management business. We managefixed infrastructure and mobile assets for a range of blue chip customers.Babcock integrates labour, technical capabilities, systems and supply chainpartners to meet the outsourcing needs of customers for 'mission-critical'capabilities. In the year to 31 March 2006 sales from continuing business were £837 million. The Group operates across five core business segments: Defence Services, supplying facilities management, equipment support andtraining services to the armed forces. Technical Services, providing engineering and logistical support to both thedefence and civil sectors in the UK. Engineering and Plant Services, supplying design, installation and maintenancesupport to the energy sector in Africa and the US. It also holds the Volvofranchise for construction equipment in Southern Africa. Rail, providing design, renewal and installation services for the UK railinfrastructure. Networks, supporting the design, maintenance and renewal of power transmissionand cellular telecommunications networks in the UK. Babcock's head office is in London and the Company's shares are quoted on theLondon Stock Exchange in the support services sector (EPIC: BAB). For furtherinformation, please visit Babcock's website at www.Babcock.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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