Babcock International Group Live Discussion

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Ripley94 21 Nov 2018

Hindsight BAB… XXXXX Read they denied Boatman allegations and slagged the outfit a few days back . RNS … results today… one of the biggest fallers down 8% but in falling markets .

Ripley94 26 Oct 2018

Hindsight BAB… XXXXX Five year low here there has been a short seller attack buy " Boatman Capital Research" Read article 15/10/18 in Telegraph , bit of a mystery outfit it appears . Comparisons to CLLN are being made.

Ripley94 30 Jul 2018

Hindsight BAB… XXXXX This picked up to a high by 12 June 2018 of 861p , but has now falling again to today’s 724p. Rns today in response to “incorrect” Mail on Sunday report yesterday .

cavebear 20 Jul 2018

Price drop Almost the start of a discussion which is a rare beast on ii these days…

valeite 19 Jul 2018

Price drop the market is seriously jumpy on any disappointing news (only slightly) but a bit of a pullback from being down £1 earlier to 68 p as I write . probably oversold but the most important take is that we’re not going bust .we have to wait for the sector to get some confidence back I think

cavebear 19 Jul 2018

Price drop Any views on today’s price drop following trading update?

Komatsu100 02 Jun 2018

"Shorters"? There were 1.17% of BAB shares shorted on 13/07/17. The share price then was £8.57.[link] close of play today the share price was £8.572 and on 29/05/18 there were 5.89% shorted.So my question is why haven't the "shorters" unwound their position further?They still need to buy back 29.7m shares which should drive the share price higher.Can someone please explain what's going on?

Komatsu100 24 May 2018

The Times 24/05/18 [link] is the dog that didn’t bark. Babcock is the large government contractor that has been causing the analyst community the three-pipe problem of why it hasn’t followed other outsourcing giants — Capita, Serco, Mitie, Interserve and, of course, Carillion — into financial crisis. The reason this dog didn’t bark, as Sherlock Holmes would have deduced, is that it didn’t have to.Many analysts have been wondering for years when Babcock’s “moment” of crisis would come.Babcock has long argued that to link it with lower-margin outsourcers who clean the floors at public sector offices or do back office government number-crunching is a misreading of the facts.Instead, Babcock provides engineering services that keep the air force flying and the navy’s boats floating. Its margins are 10 per cent-plus compared with the sub-5 per cent, or indeed minus in places, of others in the support services sector.It stays close to its main client, the Ministry of Defence, to ensure that it doesn’t have major contractual blowouts. Its only exposure to the cost-cutting Cabinet Office is work for the Nuclear Decommissioning Authority, which is also high-end engineering and pays high margins.It could be smart for Babcock to get itself reclassified in engineering. So far, this advice has been ignored.Yesterday, Babcock confounded the doom-mongers again. It posted an 8 per cent rise in annual pre-tax profits to £512 million in the year to March 31, while revenues hit £4.6 billion. Both were records, albeit not wholly unexpected. The City liked the cash conversion — an issue that has brought down so many in support services — which enabled it to cut debt 5 per cent to £1.1 billion. Analysts also liked the £31 billion order book and bid pipeline.Babcock runs boatyards such as Devonport in Plymouth and Clyde in Scotland for the MoD, and at Rosyth it has helped to build Britain’s two new aircraft carriers. It also looks after and helps train the British Army and runs airbases, maintains aircraft and trains pilots for the RAF.Its pipeline of work includes the design, build and maintenance of the new Type 31e frigate; training RAF and Royal Navy pilots in fighting; £500 million work at the new Hinkley Point C nuclear power station; and delayed electrification work with Network Rail.Crucially, the pipeline also includes bidding for contracts to train Canadian and Spanish air force pilots. This is the sort of work that will wean Babcock off its dependence on the UK MoD and hit its target of 30 per cent of income from overseas. The Australian military and South African mining industry are already fertile grounds for Babcock and it is training French air force pilots.Stephen Rawlinson, an independent sector analyst, admits to being puzzled by Babcock. He wonders about the sustainability of those 10 per cent margins, worries about debt still at 1.6 times ebitda profits and says the good cash conversion gets eaten pretty quickly by having to service debt, pay into the pension funds, pay HMRC, and keep up capital expenditure and invest in technology.Though the shares lifted 19½p to 784p yesterday, Mr Rawlinson believes Babcock’s stock profile “is more typical of a flawed building contractor with a chequered history than an engineering services company”.From £10.91 18 months ago to 631p during the fallout from the Carillion fiasco this year, Babcock shares have now put on about 25 per cent in three months. Babcock has not been an elementary case for the City to crack, but with a strong dividend record, the signs are it may be a dog worth going for a walk with.ADVICE BuyWHY Babcock has been unfairly tarred by other contractors’ misdemeanours. The shares have fallen too far

nk1999 23 May 2018

From III "................. The company provides technology, infrastructure management and specialist training across sectors including marine, aviation and nuclear.Jefferies said the annual results contained many positives, none more so than free cash flow (FCF) coming in 30% higher than expectations.The broker, which has a 950p price target, added: "In a sector driven by FCF yield, this should sustain Babcock's recent share price rally."The bid pipeline increase also provides comfort regarding revenue outlook during a period of debate regarding UK public sector and MoD budgets."With a price target of 1100p, Liberum said Babcock was one of its key "buys". It pointed out today that a projected 2019 PE multiple of 8.6x was at a 40% discount to the sector average of 13.5x.They added: "Babcock remains cheap, despite our view that the reasons for caution are beginning to abate."[link]

Rhigos 23 May 2018

Re: Results Our Haven,Agreed good results. SP was up nearly 6% this morning but now only up 2.8%. I guess some investors taking advantage of rise to sell this share, that has been under performing since Feb 2014. Thankfully it has started to pick up since Feb this year. It needs to go up another 20% before I show any CG on them. A lot of patience needed with BAB!

Our Haven 23 May 2018

Results Good results shows the strength of Babcock in their specialist areas. Not to be confused with other public sector providers!

gamesinvestor 16 May 2018

Re: Is Babcock the Next Carillion? "Foll says. She points out that Babcock tends to only bid for contracts where it is the sole bidder, like the decommissioning of nuclear submarines.“They are the only company in the UK capable of doing that,” she explains. “Therefore the margins they’re making are more like 10%, whereas the general contractors tend to be aiming for between 1% and 3%."If only this were true, once the creative accounting becomes clear. Babcock is probably very little different than the others in it's susceptibility to complex accounting trickery.The trouble is, you only find this out on the morning that the shares have tanked.Being the sole bidder, doesn't guarantee a successful outcome - it could also be that others find it unattractive to do so.The debts, operation costs etc are such at Babcock, that it's possibly uninvestable, or at the very least a lower quality investment than many other choices.Games

Komatsu100 08 May 2018

Is Babcock the Next Carillion? [link]

valeite 13 Apr 2018

breaks in the cloud? RBC Capital says BAB to outperform and targets £10 . a positive comment is a welcome change to the gloom we've endured here

Kenj2 16 Feb 2018

iii company assesment [link]