Babcock on target with savings
Defence contractor Babcock International says it is on track to deliver savings of about £20 million in the current financial year.
The aerospace, defence and security group, which includes the Defence Support Group operation at MoD Donnington in Telford and the Babcock Vehicle Engineering specialist vehicle conversions business at Aldridge, said overall trading in the first 10 months of the year, which runs to March 31, had been in line with expectations.
The group is continuing to manage costs associated with Covid-19, ongoing inflation and supply chain pressures. Its new operating model is on track to deliver the £20m savings target.
Babcock completed the sales of its UK power business in December for £50 million and its 15.4 per cent stake in AirTanker Holdings in February for £95m. This was the fourth disposal completed in the current financial year bringing gross proceeds generated to £448m, above the targeted minimum of £400m required to strengthen the balance sheet.
Earlier this month Babcock entered into a sales and purchase agreement to acquire the remaining 50 per cent interest in its Australian naval ship management joint venture for around £32m. The acquisition, in one of the group's focus countries, will allow it to further strengthen its support to the Australian Defence Force.
