Babcock International Group PLC Trading Update (7729C)
February 25 2022 - 2:00AM
UK Regulatory
TIDMBAB
RNS Number : 7729C
Babcock International Group PLC
25 February 2022
25 February 2022
Babcock International Group PLC (Babcock or the Group) Trading
update
Babcock, the aerospace, defence and security company, issues
this update covering the first ten months of the financial year
ending 31 March 2022.
Group trading
Overall Group trading for the first ten months to 31 January
2022 was in line with expectations. Results for the Group are
fourth quarter weighted, and based on current projections our full
year outlook is unchanged.
We continue to manage costs associated with COVID-19, ongoing
inflation and supply chain pressures. Our new operating model is on
track to deliver savings of approximately GBP20 million in this
financial year.
As stated before, FY22 free cash flow is expected to be
significantly negative. This reflects material cash outflows
including additional pension contributions, restructuring costs,
and investments in facilities and IT upgrades.
Portfolio alignment
We have continued to make progress on strategic priorities,
including portfolio alignment. We completed the sales of our UK
Power business in December for gross proceeds of GBP50 million, and
our 15.4% stake in AirTanker Holdings Limited in February for GBP95
million. This was the fourth disposal completed in the current
financial year bringing gross proceeds generated to GBP448 million,
above our targeted minimum of GBP400 million required to strengthen
the balance sheet.
Earlier this month we entered into a Sales and Purchase
Agreement to acquire the remaining 50% interest in our Australian
Naval Ship Management (NSM) joint venture for around GBP32 million.
The acquisition, in one of the Group's focus countries, will allow
the Group to further strengthen its support to the Australian
Defence Force.
For further information please contact:
Babcock International Group PLC
Andrew Gollan Kate Hill
Director of Investor Relations Group Director of
Communications
Tel: +44 (0) 7936039004 Tel: +44 (0)20 7355 5312
Tulchan Communication
Olivia Peters/Harry Cameron
Tel: +44 (0)20 7353 4200
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END
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