Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Babcock International Group    BAB   GB0009697037

BABCOCK INTERNATIONAL GROUP

(BAB)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Babcock International : wins frigate deal as UK bids to restore shipbuilding industry

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/12/2019 | 03:51am EDT
FILE PHOTO: Britain's Prime Minister Boris Johnson visits in Scotland

LONDON (Reuters) - Babcock International won a contract to design new Type 31 frigates on Thursday as Britain seeks to revive its once-mighty shipbuilding industry.

The frigates will be assembled at Babcock's facility in Rosyth, Scotland, and the programme will support over 2,500 jobs across the Britain, including its supply chain.

The deal will boost Babcock's efforts to repair ties with investors after a period when the engineering group's management and stock price came under fire. Its shares are more than 35% below their mid-2018 level.

Babcock's Arrowhead 140 design beat rival bids from BAE Systems and Atlas Elektronik UK, and a formal contract award is expected later this year, Babcock said.

"Arrowhead 140 is a modern warship that will meet the maritime threats of today and tomorrow," Babcock Chief Executive Archie Bethel said.

"It provides a flexible, adaptable platform that delivers value for money and supports the UK's National Shipbuilding Strategy."

The government will buy at least five of the frigates and has said the first ship is set to be in the water by 2023.

Babcock said detailed design work would start immediately, with manufacturing beginning in 2021 and finishing in 2027. The ships will have an average production cost of 250 million pounds a ship.

The government has committed to keeping up a fleet of at least 19 frigates and destroyers with the aim of growing the fleet in the 2030s. Type 31 frigates will replace Type 23 ships.

"(The) UK is an outward-looking island nation, and we need a shipbuilding industry and Royal Navy that reflect the importance of the seas to our security and prosperity," Prime Minister Boris Johnson said in a statement.

"I am convinced that by working together we will see a renaissance in this industry which is so much part of our island story – so let's bring shipbuilding home."

Britain is building patrol vessels and new Type 26 frigates at BAE Systems' Govan shipyard on the Clyde river in Glasgow.

But the country's shipbuilding industry has suffered a catastrophic decline in the last 40 years, with shipyards in places from Sunderland to Portsmouth closing.

Belfast's Harland and Wolff shipyard, where the Titanic was built, went into administration last month.

(Reporting by Alistair Smout; editing by Stephen Addison and Sonya Hepinstall)

By Alistair Smout

Stocks mentioned in the article
ChangeLast1st jan.
BABCOCK INTERNATIONAL GROUP 3.68% 563.6 Delayed Quote.15.19%
BAE SYSTEMS -0.18% 570.4 Delayed Quote.24.22%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BABCOCK INTERNATIONAL GROU
09/13BABCOCK : Contract in Canada for Cavendish Nuclear
AQ
09/12BABCOCK INTERNATIONAL : wins frigate deal as UK bids to restore shipbuilding ind..
RE
09/12BABCOCK INTERNATIONAL : Preferred bidder for UK naval frigate programme
PU
09/11BABCOCK INTERNATIONAL : Update on refinancing
PU
07/04BABCOCK INTERNATIONAL GROUP : Ex-dividend day for final dividend
FA
07/02BABCOCK INTERNATIONAL : Publication of a Prospectus
PU
06/27BABCOCK INTERNATIONAL : Britain's Serco nudges 2019 revenue outlook higher
RE
06/25BABCOCK INTERNATIONAL : Airbus Limits H175 Speed After Crack Discovery
AQ
06/17LONDON STOCK EXCHANGE : Banks support FTSE 100 even as airlines hit by Lufthansa..
RE
06/17BABCOCK INTERNATIONAL : confirms it turned down Serco's buyout offer
RE
More news
Financials (GBP)
Sales 2020 4 840 M
EBIT 2020 518 M
Net income 2020 287 M
Debt 2020 900 M
Yield 2020 4,85%
P/E ratio 2020 9,94x
P/E ratio 2021 9,72x
EV / Sales2020 0,77x
EV / Sales2021 0,74x
Capitalization 2 848 M
Chart BABCOCK INTERNATIONAL GROUP
Duration : Period :
Babcock International Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BABCOCK INTERNATIONAL GROU
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Average target price 558,82  GBp
Last Close Price 563,60  GBp
Spread / Highest target 46,4%
Spread / Average Target -0,85%
Spread / Lowest Target -26,4%
EPS Revisions
Managers
NameTitle
Archibald Anderson Bethel Chief Executive Officer & Executive Director
Michael John Turner Chairman
Franco Martinelli Group Finance Director & Executive Director
John Wallace Howie Chief Executive Officer-Marine & Technology
Jon Hall Managing Director-Technology
Sector and Competitors
1st jan.Capitalization (M$)
BABCOCK INTERNATIONAL GROUP15.19%3 546
VINCI36.46%61 186
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION2.28%34 584
LARSEN & TOUBRO LTD-5.50%26 957
CHINA COMMUNICATIONS CONSTRUCTION CO LTD-10.18%21 674
FERROVIAL45.52%20 934