2nd Jun 2005 07:02
Babcock International Group PLC02 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 toannounce that the Ministry of Defence has awarded Babcock Naval Services (BNS) a5 1/2 year extension to the partnering agreement at HM Naval Base Clyde. Thecontract extension is valued at circa £400 million and will extend therelationship between BNS and the MoD at HM Naval Base Clyde until 2013. Theextension 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 BNStake over responsibility for the provision of engineering support, facilitiesmanagement and other specialist support services to the MoD and Royal Navycovering an initial five-year period through to August 2007. During the first 21/2 years of this contract BNS has successfully reduced costs and improvedservice levels and it is this success that has resulted in the MoD opting toaward an extension to the contract a year earlier than planned. The award ofthis extension to the contract brings the total value of the partneringagreement 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 andthe 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 NavalServices who have shown in the last 2 years just how efficient and costeffective a MOD/Commercial partnership can be. This produces real results foroperational effectiveness and value for money for the taxpayer. I am genuinelyexcited about what this contract extension means for the Base and for ourability to support the fleet". For further details please contact: Babcock International Group PLCPeter Rogers, Chief Executive 020 7291 5000 Financial DynamicsRob 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 rangeof technical, training and facilities management services to the defence andcivil sectors. In the year to 31 March 2004 sales from continuing business were£438 million. In June 2004 Babcock acquired the Peterhouse Group, which hadcontinuing sales (excluding rail maintenance) of approximately £26O million. The Group operates across six 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. Health, Safety and Environmental services, providing surveying and monitoringservices to utility companies and safety equipment and training to a range ofsectors. Babcock's head office is in London and the Company's shares are quoted on theLondon Stock Exchange. For further information, please visit Babcock's websiteat www.babcock.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Babcock