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BAB - Babcock International News Story

215.3p 0.3  0.1%

Last Trade - 4:52pm

Mid Cap
Market Cap £1.09bn
Enterprise Value £2.87bn
Revenue £4.45bn
Position in Universe 359th / 1809

BRIEF-Babcock agrees with the UK over termination of Magnox contract

Mon 27th March, 2017 7:22am
March 27 (Reuters) - Babcock International Group Plc 
 BAB.L : 
    * Magnox decommissioning contract 
    * Come to a mutual agreement with UK's nuclear 
decommissioning authority to end Magnox decommissioning contract 
at end of August 2019 
    * Has become apparent that work that needs to be done at 12 
Magnox sites is now materially different in volume from that 
specified in NDA's tender 
    * This puts contract at risk of a legal challenge 
    * Change to contract will result in removal of around 800 
million stg from group's 20 billion stg order book 
    * This would an annual step down in revenue of around 100 
mln stg (less than 2 pct of group's turnover) from financial 
year 2020/21 
    * Group would expect to replace lost revenue in normal 
course of business over that timeframe 
    * Around 1 billion stg will be removed from bidding 
pipeline; new identified opportunities likely to result in 
bidding pipeline being broadly unchanged 
    * Contract change is not expected to have any negative 
financial impacts over next three 
    * Do not expect this announcement to change financial 
guidance we expect to give at group's full year results in May 
Source text for Eikon:*:nRSa5408Aa 
Further company coverage:  BAB.L  
 (Bengaluru Newsroom: +91 806 749 1136)
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