Business
Trading Statement & Pro Forma
Trading Statement & Pro Forma.
About this update from Babcock International Group Plc
[{"type":"text","content":"\n RNS Number : 4733T Babcock International Group PLC 29 September 2010 \n \n\n \n29 September 2010\n \n \n \nBabcock International Group PLC\nPre-close trading statement and pro forma segmental analysis\n \n \nBabcock International Group PLC (Babcock or the Group) is the UK's leading engineering support services company. We are issuing this trading statement before entering a close period on 1 October 2010. The Group's half year results will be released on Tuesday 9 November 2010.\n \nGroup overview\nDuring the first half of the financial year the Group has continued to make good progress. Trading and the financial and operational performance of the Group's long-term support contracts have been strong and in line with our expectations. The Group's order book now stands at c £12 billion with the pipeline of opportunities that are currently being bid valued at around £5 billion.\n \nAs a major supplier of critical support services to the government, in particular the Ministry of Defence (MoD), over the past few months we have been involved in active dialogue with Ministers to discuss how we can help them achieve both the short and medium term savings they need. Although the outcome of these discussions will not be known until the Comprehensive Spending Review and Strategic Defence and Security Review are published, we are confident that in this environment the need for more efficient delivery of technical and support services will lead to an increased demand for outsourcing. We believe our business model and track record of identifying and delivering cost effective solutions and long-term operational efficiencies will provide significant additional opportunities in the medium to long-term.\n \nVT Integration\nThe acquisition of VT Group plc (VT) was completed on 8 July 2010. Reflecting the high level of co-operation between Babcock and VT prior to completion, all businesses had been rebranded and the new divisional structure announced by 12 July. Since that time, all corporate functions have been fully integrated, divisional management teams have been put in place and the businesses are focused on maximising the opportunities created by the acquisition. We remain confident of achieving the merger benefits of\n£50 million...