Babcock International Group

Babcock International Group

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Babcock International Group RNS, News & Media


Headline
17 Aug 2017
RNS press release - Holding(s) in Company from Proactive Investors
16 Aug 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
13 Jul 2017
RNS press release - Result of AGM from Proactive Investors
13 Jul 2017
News - Babcock International says new financial year has "started well" and it has already locked in large portions of anticipated revenue from Proactive Investors
13 Jul 2017
RNS press release - Annual General Meeting Trading Update from Proactive Investors
29 Jun 2017
RNS press release - Contract Award from Proactive Investors
27 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
22 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
20 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
19 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
15 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
13 Jun 2017
RNS press release - Notice of AGM from Proactive Investors
7 Jun 2017
RNS press release - Holding(s) in Company from Proactive Investors
7 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
7 Jun 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
1 Jun 2017
RNS press release - Publication of Final Terms from Proactive Investors
30 May 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
24 May 2017
RNS press release - Holding(s) in Company from Proactive Investors
24 May 2017
RNS press release - Final Results from Proactive Investors
19 May 2017
RNS press release - Holding(s) in Company from Proactive Investors
2 May 2017
RNS press release - Holding(s) in Company from Proactive Investors
3 Apr 2017
News - Babcock International selected as preferred bidder for around £360mln Royal Navy contract from Proactive Investors
27 Mar 2017
News - Babcock to take reveue hit from 2020/21 on termination of Magnox decommissioning contract from Proactive Investors
15 Mar 2017
News - Babcock International boosted by Liberum Capital upgrade on "compelling" valuation from Proactive Investors
28 Feb 2017
News - Babcock International's shares rise as it expects to meet full year targets from Proactive Investors
12 Dec 2016
RNS press release - Director Declaration from Proactive Investors
28 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
28 Nov 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
23 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
23 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
22 Nov 2016
RNS press release - Half-year Report from Proactive Investors
21 Nov 2016
RNS press release - Contract Award from Proactive Investors
21 Oct 2016
RNS press release - Holding(s) in Company from Proactive Investors
17 Oct 2016
RNS press release - Capital Markets Day site visit from Proactive Investors
13 Oct 2016
RNS press release - Contract Award from Proactive Investors
23 Sep 2016
RNS press release - Holding(s) in Company from Proactive Investors
20 Sep 2016
RNS press release - Publication of a Prospectus from Proactive Investors
16 Sep 2016
RNS press release - Holding(s) in Company from Proactive Investors
8 Sep 2016
RNS press release - Contract Award from Proactive Investors
16 Aug 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
29 Jul 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
21 Jul 2016
RNS press release - Result of AGM from Proactive Investors
21 Jul 2016
RNS press release - Annual General Meeting Trading Update from Proactive Investors
20 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
8 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
28 Jun 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
22 Jun 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
20 Jun 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
17 Jun 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors

Babcock International Group 3 Month Chart


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Re: Babcock wins £500 million Norway d... by sharegardener

  Wed, 16 Aug 2017 14:54:00 GMT

Hi Komatsu,
RNS about this was released on 29th June. It reaffirms their expertise in air ambulance services and they havent been in Norway before. The £500M is the 11 year contract value but it appears they are only signed up for 6 years with option to extend after this.
BAB still looking like a solid diversified business overall but the lack of rise in SP implies that some people are wary.
SG


By sharegardener



Babcock wins £500 million Norway deal by Komatsu100

  Tue, 15 Aug 2017 17:49:00 GMT


LINK



By Komatsu100



Re: Times- Tempus by schovald

  Fri, 26 May 2017 14:25:00 GMT

IC give it a as a buy too.

By schovald



Times- Tempus by nk1999

  Thu, 25 May 2017 22:53:00 GMT

"There are three main factors to look at when judging an engineer and outsourcer such as Babcock International. One is the rate at which it can grow revenues year-on-year organically, whatever the effect of exchange rate movements or other one-offs. Babcock has indicated it can grow at a rate of about 5 per cent, and the outcome for the year to the end of March was indeed 4.9 per cent, with an acceleration to 6 per cent in the second half.
The second is the rate at which work is replenished. Babcock ....

The third factor is the margins such work is carried out on, which has been the downfall of outsourcers in the past as a deterioration in performance has made it unprofitable. Margins at its defence business, which includes looking after army vehicles, and at marine and technology, the UK naval work, are solid enough, while it would take a brave MoD bureaucrat to risk an upset by awarding these long-running contracts to anyone else..

The earlier mistrust over Babcock appears to be dissipating and at least one broker was turning positive yesterday. The shares lost 10p to 959½p after a surge in recent days and sell on a modest 11 times earnings.

My advice Buy
Why Babcock is now heading forward on all measures with an assured workload and attractive margins, and the shares have come back too far"


By nk1999



Deutsche Bank broker note YESTERDAY by Rhigos

  Wed, 24 May 2017 13:23:00 GMT

LINK

From above link:
"A bullish broker note also lifted Babcock International 32p to £13.01. Ahead of its full-year results on Wednesday, Deutsche Bank said the blue chip stock could rebound further if it posted a solid set of full-year results."

Yesterday SP rose nearly 3% today after good results released today SP down 1.2%. Seems suspicious to me. Maybe clever analysts were able to work out what results would be or - I dare say no more.


By Rhigos



liberum cap... by valeite

  Wed, 24 May 2017 12:10:00 GMT

says buy BAB and raises target price to £11 from £9.6

By valeite



Peel Hunt by nk1999

  Tue, 28 Mar 2017 22:18:00 GMT

From Citywire:

"Peel Hunt: Babcock still a ‘buy’ despite Magnox termination

Engineering support services company Babcock (BAB) has announced the end of its Magnox nuclear power station decommissioning contract but Peel Hunt is unconcerned about the short-term financial impact.

Analyst Christopher Bamberry retained his ‘buy’ recommendation and target price of £10.85 on the stock after Cavendish Fluor – in which Babcock has a 65% stake – said it had come to a ‘mutual agreement’ with the UK’s Nuclear Decommissioning Authority (NDA) to end Magnox at the end of August 2019.

‘The work that needs to be done [on Magnox] is now materially different in volume from that specified in the tender, and this puts the contract at risk of a legal challenge,’ said Bamberry.
‘Termination is no reflection on Cavendish Fluor. The change to the contract will result in a c.£100 million annual step down in revenue from full-year 20121. The contract change is not expected to have any negative financial impact over the next three years.’

Babcock shares dropped nearly 35p or 3.8% to 881.6p on Monday."


By nk1999



Re: SP fall after decommissioning contra... by Our Haven

  Tue, 28 Mar 2017 14:11:00 GMT

I would like to hope we have bottomed but momentum against the stock is strong so I fear this is not the bottom. Holding so here is hoping I am wrong.

By Our Haven



Re: SP fall after decommissioning contract e... by Rhigos

  Mon, 27 Mar 2017 17:05:00 GMT

Sent early by accident

Meant to add could be a buying opportunity now SP fallen so much. Decommissioning nuclear power stations a high risk business which they could have lost money on.


By Rhigos



SP fall after decommissioning contract end by Rhigos

  Mon, 27 Mar 2017 17:02:00 GMT

There were three new broker views out today on BAB, all buys and a director bought shares however SP falls very sharply because of .

https://www.ft.com/content/1401a470-c68d-3635-9f01-88960918cfb1

"Babcock International shares fell in early trading on Monday after the UK engineering company said it would end its contract with Britain’s Nuclear Decommissioning Authority in 2019 for the clean up of 12 Magnox reactor sites in the UK."




By Rhigos



Realignment presentation by sharegardener

  Thu, 16 Mar 2017 16:25:00 GMT

Hi all,
there may well be a few broker/analyst emissions following on from yesterdays presentation and Q&A. The webcast and slides are up on the website - replay takes about an hour. All subjective and aimed at putting the best gloss on their business of course.
The existing 4 divisions are regrouping into Sectors. (slide 18) essentially it becomes ground (Land), air (Aviation), water (Marine) and atom (Cavendish Nuclear). The aim is to build on growth but cost agnostic.
Archie Bethel new CEO gave an overview of BABs main activities and a run through of his 5 year strategy review - as you would expect of an incoming CEO, though he has been at Babcock a long time. He specifically said he wasnt giving any new guidance on this years performance which will only come out at the finals in May.
The main emphasis was on BABs areas of future growth, pushing their UK formula into international markets. The combination of engineering expertise around complex infrastructure and their long customer relationships give high barriers to entry but the slides give detail on their main contracts with values, the competition and growth prospects.
They will integrate training with maintenance of fleet across military and civilian areas. They are particularly pleased at winning the French Airforce contract but think this approach has potential into other countries and across civil aviation as well as other fleets eg Fire and Police etc.
The usual analyst crowd were asking tame Qs. (Cr Suisse, Liberum, Jefferies, Deutche etc)
The main responses I noted were
- South Africa flat with little growth prospect
- Rail has improved to 6% margin from 3% but keen to offload as long term returns are poor value
- the new sectors will take time to bed in but will be more efficient with tech support and with improved flexibility for overseas contracts.
- keen to develop dockyard contracts and see growth potential worldwide
My impression is that BAB have very diverse expertise and a high contract renewal rate. They are targeting non-military and international bids as well as having a strong and long term military offering. The trouble is that contracts may only produce returns over 10 years or more so visibility of earnings & cash flow not always clear (to me).
No one mentioned Faslane & Rosyth in relation to the Scotland uncertainties in fact I dont recall mention of Brexit either!
The share price has struggled ever since the Avincis rights issue but to me looks oversold at 900p. Im holding for the long term as divi returns are fairly consistent and the growth prospects sound realistic with a focused management team. We will hear of this years progress in May.
SG


By sharegardener



Re: liberum note says buy by nk1999

  Wed, 15 Mar 2017 19:55:00 GMT

Some details from ADVFN:

"Engineering support and outsourcing company Babcock got a boost on Wednesday as Liberum upgraded its stance on the stock to 'buy' from 'hold', maintaining its 960p price target.

The brokerage attributed the upgrade to the fall in the share price and attractive metrics relative to the peer group.

In addition, it noted the business should deliver 6-7% revenue growth in 2018, which makes it too cheap to ignore.

The brokerage said the company trading statement in February guided to an in-line performance. It expects total group revenue of £5.1bn in FY17 versus £4.8bn in FY16 at a steady margin of 11.4% compared to 11.1%.

Liberum forecasts total profit of £576m in FY17 versus £540m and maintains its estimate for FY17 underlying earnings per share of 80.2p compared to 74.3p. It reckons the dividend will be upped by 8.1% to 27.9p.

The brokerage noted that at the seminar, management re-iterated overall guidance of 6-7% organic revenue growth, and it expects that around 1.5% growth will come from the contracts on the Met Police, Qantas and FOMEDEC (French aircraft training).

"We believe that this growth is achievable and makes Babcock stand out in a market bereft of growth."


By nk1999



liberum note says buy by valeite

  Wed, 15 Mar 2017 08:03:00 GMT

new price target £9.6

By valeite



Shore Capital by nk1999

  Thu, 26 Jan 2017 20:03:00 GMT

From ADVFN:

"Following BT's shock profit warning linked to a deteriorating outlook for UK public sector work, broker Shore Capital wondered "when will Babcock warn?"

Babcock's shares fell around 2% on Wednesday as investors read across the implications from BT and had also fallen in sympathy with Capita when it warned on profits last year.

With circa 70% of the group de-facto dependent upon the UK public sector, ShoreCap felt the market was expecting a similar warning from Babcock, even though the profile of services delivered and the infrastructure supported is "more than a little bit different" to BT and Capita.

"Babcock supports essential and critical infrastructure with professional engineering support services that attract less discretionary spend, but still support additional ancillary revenues. We see a very different, lesser revenue flow 'risky' profile," wrote analyst Robin Speakman.

"This is not to say that pressures on UK public spending are having no effect on Babcock, it cannot be totally immune, but it is difficult to delay spending on that decommissioning nuclear reactor, in servicing that submarine, or leaving a gap in national electricity grid infrastructure."

He said Babcock undoubtedly has other issues to address, namely convincing investors of the strength of its long term profitable growth potential.

But the weakness in the shares was a long term buying opportunity, the analyst said investors should not have too long to wait as the company updates on its third quarter on or about 28 February.

Looking at the new financial year, he pointed out that Babcock shares were trading at 10.6 times 2018 forecast earnings on a free cash flow yield of circa 8.0% with debt-to-EBITDA falling to circa 1.4 times.

Speakman is not alone, with Morgan Stanley recently expressing its preference for Babcock among the government outsourcers, with the continuing pressure on growth due to increased competition and fewer large outsourcing opportunities seen as more of a worry for Capita."


By nk1999



deutche downgrades by valeite

  Mon, 09 Jan 2017 09:26:00 GMT

deutche downgrades from buy to hold and reduces target price from £11 to £10.2 ,basically sees a lack of upside

By valeite