19th Jul 2005 07:00
Babcock International Group PLC19 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 Africabusinesses Babcock International Group PLC (Babcock), following its recent success insecuring the Eastern Regional Prime Contract, is pleased to announce a number offurther contract awards. Through its First Engineering Rail business, Babcock has won a contract fromNetwork Rail to operate the 'System 3' High Output Track Renewals, while athree-year extension for the 'System 2' has also been gained. These contractswere awarded on the basis of the demonstrable efficiency gains achieved duringthe first year of operation of 'System 2'. Both contracts were secured throughFirst Engineering's joint venture First Swietelsky, and between them willoperate on the East Coast main line and the Great Western Region. The value ofthese contracts is estimated to be some £50 million per annum until 2009. First Engineering has also secured some £10 million of contracts for Signallingupgrade and replacement in Network Rail's North Western and Scottish regions. In addition to the above, Babcock Africa has been awarded a contract for thefirst stages of a new co-generation plant for Mondi, a subsidiary of AngloAmerican. This will be among the most advanced plants of its type in SouthAfrica 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 ourbusinesses. In particular the rail contract wins demonstrate our ability topartner with our customers and to succeed in supporting the most complex ofoperations". - ends - Notes to editors: About Babcock International Group PLC Babcock International Group PLC is an asset management business. We manage fixedinfrastructure and mobile assets. Babcock integrates labour, technicalcapabilities, systems and supply chain partners to meet the outsourcing needs ofcustomers 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, Networksand Health, Safety and Environmental to the Group. 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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