1 October 2014
Babcock International Group PLC (Babcock or the Group)
Signature of the Maritime Support Delivery Framework
Babcock confirms that it has signed the Maritime Support Delivery Framework (MSDF) with the Ministry of Defence (MoD). Working within Babcock's existing Terms of Business Agreement (ToBA), which runs through to 2025, MSDF confirms the continuation of our contract to deliver services at HMNB Clyde and HMNB Devonport to March 2020, replacing the Warship Support Modernisation Initiative (WSMI) contracts.
The MSDF agreement will also cover a number of surface ship projects which will be delivered through the Surface Ship Support Alliance (SSSA).
The contract is valued at £2.6 billion. Of this c £600 million is already included within the Group's order book in respect of nominated roles under ToBA. Consequently, and as previously indicated, signature of the new contracting arrangements will enable the order book to reflect around a further £2 billion for work that would previously only have been brought into the order book on signature of separate contracts.
As the UK's leading naval support business, this new contract enables Babcock to provide both continuity and development of the range of activities and services delivered to the MoD and Royal Navy. It also allows Babcock to develop further its operations across both naval bases at Clyde and Devonport to continue to deliver savings to the MoD.
Enquiries
Babcock International Group PLC |
020 7355 5300 |
Franco Martinelli - Group Finance Director |
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Terri Wright - Head of Investor Relations |
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FTI Consulting |
020 3727 1340 |
Andrew Lorenz |
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Nick Hasell |
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