wangbaudan
20 Feb 2015
Re: 4.17% drop today All the same, interesting to wonder why Bab wasn't chosen, especially in view of the DSG contract. Surely it would have fitted in well. An American company to procure food and medical supplies for Britain's armed forces!!Wonder if it will include MRE - Meals-Ready-to-Eat - also know to GIs as "Meals refused by Ethiopians".Perhaps The reaction is due to the fact that Bab are usually preferred bidders and this is a surprise. Meanwhile note that Woodford recently bought into Bab.
kuripot
19 Feb 2015
Re: 4.17% drop today not really BAB's core expertise.Known as Logistic Commodities Services Transformation (LCST), the 13-year contract involves procuring non-military essentials such as food and medical supplies, and providing storage and distribution services for the UK's armed forces at home and abroad.entry point, if not have enough already...
Moorsman
19 Feb 2015
Re: 4.17% drop today This announcement is hardly grounds for a 5% drop. I was waiting for a good entry point and I think I now have it.
Moorsman
19 Feb 2015
Re: 4.17% drop today LONDON (Alliance News) - Leidos Holdings Inc, a US engineering company, was Thursday chosen as the UK Ministry of Defence's preferred bidder for the logistics commodities and services programme. According to Reuters, Babcock International Group PLC also was in the running. Babcock shares were down 4.6% at 1,001 pence on Thursday. The Ministry of Defence is looking to save about GBP500 million over the next thirteen years."There are still a number of steps in the commercial process before the deal is concluded and a contract signed. The MOD can confirm that, subject to contract signature, the preferred bidder proposes to construct a defence fulfilment centre next to the existing MOD site at Donnington in Shropshire," the Ministry of Defence said.[link]
gamesinvestor
19 Feb 2015
Re: 4.17% drop today google for details - Just did and can't see any announcement for today.Do you have a link?Down 5% nowGames
out-there
19 Feb 2015
Re: 4.17% drop today babcock passed over in MOD contract.google for details
wangbaudan
19 Feb 2015
Re: 4.17% drop today I think you have it dead right. Have just bought into Centrica! What a gambler!
gamesinvestor
19 Feb 2015
4.17% drop today Any news other than Centrica taking a bath and the oil price reversing it's upward trend?Games -- Maybe that's enough to knock of the price or is there something lurking?
nk1999
11 Feb 2015
Telegraph- Questor "The Questor Column:Bulging order book lifts Babcock: Babcock International reported a steady third quarter as big contract wins helped secure its view on future revenues, sending the shares more than 2% higher . Babcock is an engineering contractor that provides the workforce that is building Britain’s next generation of aircraft carriers and patrol vessels. The company is also handling the decommissioning of the U.K.’s ageing nuclear plants and provides training for the Armed Forces. Concerns remain over Babcock’s £1.6 billion acquisition of helicopter business Avincis, renamed Mission Critical Services (MCS). Babcock said the business is trading in line with expectations. However, MCS generates 65% of its revenues from Europe and recent euro weakness will drag on profits. Babcock paid about 14 times earnings for MCS. The price was high because of the rapid revenue and profit growth under the private equity Owners KKR, the majority of which came through the 2011 acquisition of U.K. helicopter operator Bond Aviation. However, growth at MCS will be held back by a sharp slowdown in flights to North Sea oil rigs as the oil price plummets. Babcock is a solid company but the shares trading on 15 times earnings, falling to 13 times next year, so remain a hold. Babcock International at £10.54+26p. Questor Says “Hold”.
gamesinvestor
10 Feb 2015
Expectations LONDON (Alliance News) - Babcock International Group PLC on Tuesday said it expects to meet its expectations for the full year to the end of March on the back of a strong performance from its existing business and from the acquisition of helicopter group Avincis. The FTSE 100-listed support services company said it entered the fourth quarter of its financial year, starting January 1, with its order book at around GBP20 billion and a bid pipeline of around GBP13 billion. Its order book provides 70% revenue visibility for its 2015-16 financial year, it said. The group said its financial position remains healthy, with good cash generation and an expected full-year operating cash conversion rate, excluding capital expenditure, of over 100%. Including capital expenditure, the rate will be around 80%, it said. Babcock said its outlook looks strong both in the UK and in its international markets, adding its order book provides strong revenue visibility. The group does expect to take a hit from the weaker euro and the depreciating South African rand, but said the deterioration of the euro should not impact its cashflow as it maintained GBP550 million of debt to hedge its European business. Sam Unsted; [email protected]; @SamUAtAlliance Copyright 2015 Alliance News Limited. All Rights Reserved.
gamesinvestor
30 Jan 2015
Re: Pension Liabilty "Is this the reason the sp has failed to gain traction since the Avencis takeover.?"Lion - I really don't know as all sorts of things effect share prices, but I just stumbled on this while reading the report -- I must have been bored that day.Anyhow -- I'm not currently a Babcock investor, but I'm interested because of the growth rates they have achieved, albeit via acquisition in parts.The problem -- unless someone else with greater expertise than me -- is that this looks like a looming time bomb as we walk into a deflationary environment and bond yields keep falling. You can see at BT, where I am an investor (well at the moment) and they have just reported this morning that their -- well here is the quote :-"""Meanwhile, BT said its funding deficit for its pension scheme had ballooned to £7bn by 30 June 2014, compared with the previous valuation of just £3.9bn in 2011. The increase “reflect[ed] the low interest rate environment at the valuation date”, BT said.""""Games -- I guess it's no longer something investors can ignore - so I'm on the hunt for companies without this drain on their resources. LK - who I see is also watching here is also on the hunt for Munters (stocks that are likely to underperform) and in doing so remain a happy mariner (Oh Captain Morgan an all). I don't think Babcock is a munter but it sure seems to have a problem with this pension deficit.
Lion Rock
30 Jan 2015
Re: Pension Liabilty Is this the reason the sp has failed to gain traction since the Avencis takeover.?
sharegardener
29 Jan 2015
Re: Pension Liability slide 18 of the H1 results from November implies the deficit is still £270M at sept 2014 with assets £3.46B but they are increasing employee contributions and retirement age with discount rate 4.1%. This does look overoptimistic and 6% contribution rate sounds rather low. Mine is now 13.5%!![link] - with no accounting expertise whatsoever
gamesinvestor
28 Jan 2015
Pension Liability Anyone ever looked into the pension liabilities at Babcock?On first glance at the annual report, the company has a net pension deficit of £270Million as of March 2014, up from £243M in 2013 due to underperforming assets. That's an increase of 11.1% in a year.To service this deficit, the company is expected to plough in £94M in 2014-15 to compensate for growing deficit, up from £47M (Note 28 in the accounts) and £34M in 2013.This is kind of hidden in the accounts, buried deep in note 28 and conveniently left off the cash flow statement as it's assumedly an emotive item.As a percentage of annual profits, this is a big number and is growing faster than Babcock can grow it's profits.The other scary part of the pension aspect is the size of the pension fund which in note 27 shows a pension pot of £3.22 Billion and the company is applying a discount rate of 4.5% against this pot.Now also in note 27 you will see that £1.16Bn is in bonds and a further £1.01Bn is in government bonds, so totalling £2.17Bn or 67% of the investments.There is no way on God's Green Earth that they can achieve a 4.5% return on their investment with bonds with yields in government bonds hitting the floor.The deficit on this is going to rise and rise and it could eat up most of the net profits of the company currently at £188MGames -- Any comments welcome
Ripley94
28 Jan 2015
n/c n/c
