REG - Babcock Intnl Group - Trading Update

Babcock InternationalAnnouncement

25/02/2022 07:00

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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 £20 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 £50 million, and our 15.4% stake in AirTanker
Holdings Limited in February for £95 million. This was the fourth disposal
completed in the current financial year bringing gross proceeds generated to
£448 million, above our targeted minimum of £400 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 £32 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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