Komatsu100
17 Dec 2014
DSG RNS RNS Number : 9751ZBabcock International Group PLC17 December 2014 17 December 2014 Babcock International Group PLC (Babcock or the Group)Acquisition of the Defence Support Group Further to the announcement of 19 November 2014, Babcock confirms it has entered into contracts with the UK Ministry of Defence for the acquisition of the Defence Support Group (DSG) and its associated service provision contract. Through this Babcock will exclusively provide the maintenance, repair, overhaul and storage of a range of current military vehicles and light weapons. Babcock will acquire DSG for a consideration of £140 million and estimates that the service provision contract and output based services will be worth c £2 billion over ten years. It is expected the acquisition will complete on 31 March 2015 and the service provision contract will start on 1 April 2015. Enquiries Babcock International Group PLC020 7355 5300Franco Martinelli - Group Finance Director Terri Wright - Head of Investor Relations FTI Consulting020 3727 1340Nick Hasell
II Editor
02 Dec 2014
NEW ARTICLE: Americas performance boosts figures at Serco "Outsource giant LSE:SRP:Serco posted strong figures for 2010 with revenue from its Americas operations boosting performance.Profit at the FTSE 100-listed firm grew 21% to £214 million, on sales up 9% to £4.33 billion.The company said it expects ..."[link]
Komatsu100
30 Nov 2014
Re: BAB win again!! LCST contract [link] Logistics Deal Delayed Until 2015LONDON — Hardly had the dust settled from Babcock’s selection as the winning bidder to acquire the British state-owned armored vehicle repair company Defence Support Group (DSG) when a newspaper report emerged claiming the firm is in line to secure a major deal with the Ministry of Defence to transform the purchase, storage and transportation of commodities.Babcock and its partner, DHL, in a team known as Defence Integrated Supply Chain Solution, has been in a head-to-head competition against US company Leidos with Kuehne & Nagel and others acting as subcontractors to win the Logistic Commodities and Services (Transformation) (LCS(T) program. An in-house MoD team has also been bidding.An announcement on a winner for the LCS(T) program had originally been planned for November. That slipped to December and recently an MoD spokesman said a final decision naming the winner had been pushed back to 2015.But now a report in the Independent newspaper here Nov. 28 said that Babcock had beaten Leidos to the deal.The MoD denied a decision had been made and said it was sticking to its new timeline for an announcement in 2015.“No decisions have yet been made. It is expected that an announcement will be made in the new year,” said a Defence Ministry spokesman.Leidos replied in a similar fashion: “We are not aware of a decision being made yet.” A Babcock spokesman said the company could not comment.One industry executive said it is possible, assuming the report is accurate, that a recommendation in favor of Babcock had been made by the Defence Equipment & Support organization but that it had not been approved yet by government ministers.LCS(T) is a major outsourcing deal that includes operations and procurement of commodities like food, clothing, general stores, some fuel and other items potentially running to more than £13 billion (US $20.5 billion) over the 13-year life of the contract with the Defence Equipment & Support (DE&S) arm of the MoD.The program is part of a wide-ranging transformation effort at the £14 billion-a-year MoD procurement and support operation aimed at improving efficiency and reducing program cost and time overruns.Originally, the word was a winner would be announced on LCS(T) at about the same time the government decided which industry bidder would acquire the MoD-owned DSG.Babcock was named preferred bidder for DSG in mid- November in a deal expected to be closed by the end of March.Nobody is saying why the program announcement slipped, although the complex deal includes more than 2,000 DE&S employees moving to the winning bidder.The Independent said the announcement was delayed because the MoD wanted to put some distance between Babcock securing the LCS(T) deal and a string of other contracts it had secured from the government this year.With the purchase of the DSG as good as done and a €1 billion (US $1.2 billion) active electronically scanned array development and integration contract also rolled out by Britain and its partners in the Eurofighter Typhoon program, and the likely LCS(T) procurement announcements earmarked for go ahead, there’s not much left to announce before Parliament breaks for Christmas recess Dec. 18.However, governments here often like to make major announcements ahead of departing for Christmas or the summer holidays and it’s possible the MoD has one further announcement up its sleeve for this year.The expected Type 26 frigate production order has slipped well into next year as BAE Systems and the MoD remain locked in talks about affordability and issues related to risk.Whichever of the two LCS(T) outsourcing proposals is selected, big changes are expected in the way the MoD runs its commodities storage and supply operations.The scope of the expected deal involves undertaking
Komatsu100
28 Nov 2014
BAB win again!! LCST contract [link] Leftly: It’s not going to say so but Babcock has done it againWestminster Outlook Babcock International should probably start throwing a few quid my way given how often I’m plugging it. At the start of the year, the government contractor was my top share tip as I felt the Coalition would hand Babcock a swathe of outsourcing deals while rivals Serco and G4S recovered from their scandals. Last week I argued that the company’s struggling share price was ridiculous given its £18.5bn order backlog. Now I’ve heard that Babcock has beaten the American group Leidos to a Ministry of Defence deal called the Logistic Commodities and Services Transformation, a £1bn-a-year spending programme on non-military essentials like nuts and bolts. The reason no announcement has yet been made is rumoured to be that Babcock has won so much government work this year – including the £7bn Magnox nuclear decommissioning contract – that it would be awkward to admit it has scooped another big contract. twitter.com/@mleftly
sharegardener
21 Nov 2014
Re: Thoughts from Tip TV thanks Kc --- he gives the impression of wanting to stick around!SG
Komatsu100
21 Nov 2014
Re: Thoughts from Tip TV sharegardener Peter Rogers stated in the Avincis Prospectus that he would stay on until 2016 to show his faith in the Avincis acquisition.
sharegardener
21 Nov 2014
Re: Thoughts from Tip TV 'A cracking half year' says Peter Rogers, 'Our strategy hasnt changed for the last decade'. Webcast/presentation on BABs website.Results out yesterday look good overall - hence the jump. SP nearly back to the 1206 theoretical ex-rights price (at the time of the Avincis acquisition). Order book is up further across a range of their services (MOD, nuclear, international incl Avincis - 70% contract win rate)Additional bids likely for Australian air ambulance, Met police training etc and strong pipelinePension deficit downOrganic revenue growth consistent for 10yrs and should continueDivi up 10%Im regretting not buying more in mid october but holding onto what I have and will buy more on new dips. I get the impression that CEO Peter Rogers keeps a tight rein on things so lets hope hes not thinking of retiring any time soon!Good luck all SG
BatsfordArmy
20 Nov 2014
Thoughts from Tip TV Babcock International (BAB) Contract win after recent Neil Woodford shares buy, - See more at: [link]
Komatsu100
19 Nov 2014
BAB preferred bidder for DSG Babcock International Group PLC Preferred Bidder - Defence Support GroupShare On Facebook PrintAlertTIDMBABRNS Number : 4598XBabcock International Group PLC19 November 201419 November 2014Babcock International Group PLC (Babcock or the Group)Preferred bidder for the acquisition of Defence Support GroupBabcock is pleased to announce that it has been selected by the Ministry of Defence (MoD) as preferred bidder for the acquisition of the Defence Support Group (DSG). The acquisition agreement includes a contract to provide services to the MoD for 10 years, with an option to extend for a further five years.DSG is the MoD agency responsible for storage, maintenance, repair and overhaul of military vehicles and equipment. It plays a key role in ensuring that the Army is able to train and be ready to deploy. Babcock will work with the MoD to complete the acquisition of DSG by 31 March 2015 and start the service provision contract on 1 April 2015.Babcock currently provides world class fleet management and equipment support to the MoD through its white fleet and engineering vehicle fleet provision and management contracts as well as its Army training contracts. The acquisition of DSG builds on Babcock's engineering and services heritage and will provide the Army with output based services for fleet management and equipment support that will enhance operational readiness as well as increase efficiency.Peter Rogers, Chief Executive commented"We are delighted that we are growing and strengthening our partnership with the Ministry of Defence through the acquisition of DSG. We are committed to working with our customer to ensure we are responsive to the evolving needs of the Army whilst achieving improved performance levels, enhanced operational agility and greater cost efficiencies."Enquiries Babcock International Group PLC 020 7355 5300 Franco Martinelli - Group Finance Director Terri Wright - Head of Investor Relations FTI Consulting 020 3727 1340 Andrew Lorenz Nick Hasell
