Babcock International

Ticker BAB

Today's data summary

Market closed
% change
-3.76%
Price Pence
455.40
Change
-17.80
As of 07:06 28 Feb 2020
Market cap. Pound sterling
2,302.49 million
As of 07:06 28 Feb 2020

Latest updates

Babcock boss to stand down

Babcock yard
Getty Images

Babcock International Group chief executive Archie Bethel is to stand down from the helm of the support services firm.

The company says it "has initiated the process to appoint his successor".

Mr Bethel, who has been at Babcock for 16 years, will remain in his role until his successor is in place.

Chairman Ruth Cairnie said Mr Bethel had been "instrumental in growing Babcock from a small cap to a leading defence business".

Babcock wins £1bn Australian contract

Aircraft carrier
Babcock

Defence giant Babcock has secured a new £1bn naval contract.

The contractor has won a deal to supply the Australian Ministry of Defence with new weapons handling systems for its submarines.

The FTSE 250 company said work to design and build the systems will start straight away.

The preliminary design stage will take place in Bristol, before being handed over to Babcock's Australian business.

Archie Bethel, the firm's chief executive, said: "The ability to transfer our unique Babcock intellectual property, know-how and expertise internationally across the group allows us to play an increasing role in ensuring the defence of countries around the world."

Babcock falls on dismal half-year profits

Ships
Babcock

Shares in defence giant Babcock International slumped more than 5% this morning after its half-year profits drop by nearly a fifth.

The group - which is the Ministry of Defence's second largest contractor - reported an 18% fall in underlying pre-tax profits to £202.5m for the six months to the end of September.

Boss Archie Bethel insisted the firm's "strategy is delivering", with its order book rising to £18bn thanks to recent wins including contracts to build the Type 31 warship for the UK's Royal Navy and provide training to London's Metropolitan Police Service.

It secured around £3.5bn of contracts overall in its first half.

It's shares have recovered slightly from earlier falls and are now down 2.53% at 531.20.

Royal Navy Type 31 frigate
The new generation of Royal Navy frigates is to be designed and built by engineering firm Babcock.

Frigate contract brings '2,500 British jobs'

Today Programme

BBC Radio 4

ship
BABCOCK

Defence Secretary Ben Wallace also spoke to Today about the new contract to build frigates, which he said would bring "2,500 British jobs for British workers".

"British shipbuilding can be on the up. We need to help support our yards, give them help where it's needed for productivity but also make sure thatt our orders where we can are placed in the UK to reinvigorate that sector," he said.

Babcock gets frigate contract

ship
BABCOCK

It has been confirmed that Babcock has won the contract to build new frigates for the Royal Navy.

In a statement to the stock market, Babcock said work on the fleet of five ships will begin immediately following formal contract award later this financial year, with detailed design work to start now and manufacture commencing in 2021 and concluding in 2027.

Archie Bethel, chief executive of Babcock, said the ships will be assembled at Babcock's Rosyth facility, and involve supply chains throughout the UK, in line with the UK's shipbuilding strategy.

There's a BBC story here.

Babcock gets new chair

Babcock was one of the contractors working on the Royal Navy's new aircraft carriers
PA
Babcock was one of the contractors working on the Royal Navy's new aircraft carriers

Aerospace and defence company Babock has named Ruth Cairnie to replace Mike Turner as chair.

She will take over in July when he steps down at the annual general meeting after 11 years in the role.

She has a 37-year international career spanning senior functional and line roles at Royal Dutch Shell and is currently the senior independent director of Associated British Foods and a non-executive at Rolls Royce Holdings plc and ContourGlobal.

Babcock to take £10m hit from Brexit restructuring

Plane firefighting in Spain
Getty Images

Defence giant Babcock is to take an additional £10m tax hit due to Brexit, the company has said.

Restructuring of the group's aerial emergency services businesses will create the additional cost, it said.

Shares in the company dropped as much as 7.6% in early trading.