Interim Management Statement

 

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RNS Number : 0140P 
Babcock International Group PLC 
08 July 2010 
 

 
8 July 2010 
 
 
 
Babcock International Group PLC 
Interim Management Statement 
 
Prior to today's Annual General Meeting, Babcock International Group PLC 
('Babcock' or 'the Group'), the engineering support services company, is issuing 
the following Interim Management Statement for the period since 31 March 2010. 
 
The 2010/11 financial year has started well and trading for the Group as a whole 
remains resilient.   The Group's financial position remains secure and 
performance to date is consistent with our expectations at the time of our 
preliminary results announcement on 11 May 2010. Cash generation across the 
Group has remained strong and we have continued to use cash to pay down debt, 
this provides a solid foundation for the enlarged Group, following completion of 
the acquisition of VT Group plc (VT). 
 
Since the start of this financial year, the order book has been stable at around 
GBP8.3 billion.  We have also maintained a healthy bid pipeline.  All our major 
support contracts and framework agreements, which already include a commitment 
to deliver efficiencies for our customers, are performing as expected, with no 
changes to the levels of work coming through or their financial performance. 
 
As the Government seeks to address the fiscal deficit in the UK, we believe 
there will be an increase in outsourcing opportunities in our chosen markets. 
Our track record of working in partnership with our customers to identify and 
deliver the cost effective solutions and long-term operational efficiencies they 
require, leaves us well placed to take advantage of these opportunities. 
 
Acquisition of VT Group plc 
Our proposed acquisition of VT has received all the necessary competition and 
regulatory clearances, in both the UK and US and both Babcock and VT 
shareholders have voted overwhelmingly in favour of the transaction.  A final 
court hearing to approve the capital reduction of VT required to implement the 
associated scheme of arrangement will be held later today 8 July 2010, and 
following approval the scheme will become effective. 
 
Within the constraints imposed by competition regulation, the Babcock and VT 
management teams together have made excellent progress in planning a speedy and 
efficient integration process which will start immediately following completion. 
 
Outlook 
We believe our major markets remain attractive with significant long-term growth 
opportunities in both the UK and overseas and that these opportunities are 
considerably enhanced by the increased scale and capabilities we expect the 
acquisition of VT to bring to the Group. 
 
Across our businesses we have excellent visibility, supported by the long-term 
nature of our contracts, a strong order book and robust bid pipeline.  We 
believe the outlook for the 2010/11 financial year remains positive and we look 
forward to another year of good progress. 
 
- Ends - 
 
 
 
Enquiries 
Babcock International Group PLC 
020 7355 5300 
Peter Rogers - Chief Executive 
Bill Tame - Finance Director 
Terri Wright - Head of Investor Relations 
 
FD 
                        020 7269 7291 
Andrew Lorenz 
Sophie McMillan 
 
 
 
Forward looking statements 
Certain statements in this announcement are forward looking statements.  Such 
statements may relate to Babcock's business, strategy and plans.  Statements 
that are not historical facts, including statements about Babcock's or its 
management's beliefs and expectations, are forward-looking statements.  Words 
such as 'believe', 'anticipate', 'estimates', 'expects', 'intends', 'aims', 
'potential', 'will', 'would', 'could', 'considered', 'likely', and variations of 
these words and similar future or conditional expressions are intended to 
identify forward-looking statements but are not the exclusive means of doing so. 
 By their nature, forward-looking statements involve a number of risks, 
uncertainties or assumptions, some known and some unknown, that could cause 
actual results or events to differ materially from those expressed or implied by 
the forward-looking statements, many of which are beyond Babcock's control. 
Forward-looking statements contained in this announcement regarding past trends 
or activities should not be taken as a representation that such trends or 
activities will continue in the future.  Nor are they indicative of future 
performance and Babcock's actual results of operations and financial condition 
and the development of the industry and markets in which Babcock operates may 
differ materially from those made in or suggested by the forward-looking 
statements.  You should not place undue reliance on forward-looking statements, 
which speak only as of the date of this announcement because such statements 
relate to events and depend on circumstances that may or may not occur in the 
future.  Forward-looking statements reflect Babcock's judgement at the date of 
this announcement and are not intended to give any assurance as to future 
results.  Except as required by law, Babcock is under no obligation to update 
(and will not) or keep current the forward-looking statements contained in this 
announcement or to correct any inaccuracies which may become apparent in such 
forward-looking statements. 
 
A copy of this announcement will be made available, free of charge, on Babcock's 
website (www.babcock.co.uk) by no later than 12 noon (London time) on 9 July 
2010. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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