23rd Mar 2006 18:23
Babcock International Group PLC23 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 VTGroup plc ('VT') and BAE Systems plc ('BAE Systems') that these two companieshave been exploring the possibility of a bid for Babcock and confirms that noapproach has been received. Over the last five years, Babcock has transformed itself from an engineeringconglomerate into a focused support services and asset management business,managing fixed infrastructure and mobile assets. This transformation hasgenerated substantial shareholder value including an increase in Babcock's shareprice 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 2005was selected as a member of the Aircraft Carrier Alliance to construct the bowblock and carry out the associated detailed design. In addition Babcock willsupport the Alliance in procurement and other elements of the programme. In Babcock's half year statement of 15 November 2005, the company stated thatthe first half of the year had fully met its expectations, with underlyingoperating profit increasing by 21% to £25.2 million. Peter Rogers, ChiefExecutive, said, "we expect further progress to be made in the second half andthe full year result to be ahead of our original expectations." In line with its regular practice, Babcock will make a trading statement nextweek prior to entering its close period for the full year ending 31 March 2006. For further information please contact: Babcock International Group PLCGordon Campbell, Chairman 020 7269 7291 Financial DynamicsAndrew 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 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 £745 million.In June 2004 Babcock acquired the Peterhouse Group which brought; Rail andNetworks 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:
BabcockBAE Systems