Babcock International Group (BAB)

Sector:

Defense and Aeronautics

Index:

FTSE 250

295.10p
   
  • Change Today:
    -8.20p
  • 52 Week High: 380.20p
  • 52 Week Low: 199.00p
  • Currency: UK Pounds
  • Shares Issued: 505.60m
  • Volume: 911,970
  • Market Cap: £1,492.02m
  • RiskGrade: 290
  • Beta: 1.20

Babcock sells Frazer-Nash Consultancy to KBR for £293m

By Frank Prenesti

Date: Friday 13 Aug 2021

LONDON (ShareCast) - (Sharecast News) - Defence and aerospace engineer Babcock said it has sold its Frazer-Nash Consultancy to US peer KBR for £293m as part of its disposal programme to bolster its balance sheet.
Frazer-Nash provides engineering and technology services in the marine sector from a network of nine UK and four Australian locations. The consultancy, which Babcock acquired in 2007, employs around 900 people.

The sale, subject to clearance by the Australian foreign investment authority, forms part of Babcock's targeted disposal programme, which aims to generate at least £400m in the next year. Proceeds from this transaction will be used to reduce net debt which stood at £1.35bn at the end of March.

Babcock last month plunged to a £1.6bn loss for the year after revealing a £2bn write-down on the profitability of its contracts - £300m more than forecast by the company in April.

The company manages naval bases and looks after submarines and counts the UK Ministry of Defence as its biggest customer. The Covid pandemic has hurt its civil aviation business while social distancing rules have hit productivity and margins, as many of its jobs involve working in close proximity such as in ships and submarines.

"We are making real progress on our plan to streamline and focus the group on our key markets," Chief Executive Officer David Lockwood said, adding that the unit was a good fit for KBR.

Analysts at Shore Capital said the deal takes Babcock "a substantial way" towards its debt reduction target and marked the shares a 'hold'.

"Whilst challenges remain for Babcock to overcome in the medium term, this is a positive step, in our view," they said in a note.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BAB Market Data

Currency UK Pounds
Share Price 295.10p
Change Today -8.20p
% Change -2.70 %
52 Week High 380.20p
52 Week Low 199.00p
Volume 911,970
Shares Issued 505.60m
Market Cap £1,492.02m
Beta 1.20
RiskGrade 290

BAB Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
18.07% below the market average18.07% below the market average18.07% below the market average18.07% below the market average18.07% below the market average
38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average
Price Trend
69.23% below the market average69.23% below the market average69.23% below the market average69.23% below the market average69.23% below the market average
53.85% below the sector average53.85% below the sector average53.85% below the sector average53.85% below the sector average53.85% below the sector average
Income
16.9% below the market average16.9% below the market average16.9% below the market average16.9% below the market average16.9% below the market average
11.11% above the sector average11.11% above the sector average11.11% above the sector average11.11% above the sector average11.11% above the sector average
Growth
46.93% below the market average46.93% below the market average46.93% below the market average46.93% below the market average46.93% below the market average
71.43% below the sector average71.43% below the sector average71.43% below the sector average71.43% below the sector average71.43% below the sector average

What The Brokers Say

Strong Buy 7
Buy 0
Neutral 3
Sell 1
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BAB Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Dec-19 04-Jul-19
Paid 17-Jan-20 09-Aug-19
Amount 7.20p 22.90p

Trades for 03-Dec-2021

Time Volume / Share Price
16:35 751 @ 295.10p
16:35 270,605 @ 295.10p
16:29 259 @ 294.10p
16:29 350 @ 294.20p
16:29 101 @ 294.50p

BAB Key Personnel

Chair Ruth Cairnie
CEO David Lockwood
CFO David Mellors

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