Defence services group Babcock International has announced that its 2010/11 fiscal year started well and trading remained resilient.
Babcock, the engineering support services provider to the Royal Navy submarines, said that it expected an increase in outsourcing opportunities as the UK Government seeks to slash its budget deficit.
Speaking on the topic, Babcock said, "As the government seeks to address the fiscal deficit in the UK, we believe there will be an increase in outsourcing opportunities in our chosen markets.”
Babcock said that its order book remained stable at around £8.3 billion and it trading remained in line with its expectations.
The defence services group also said that its proposed acquisition of VT Group was near its completion as the deal had received all the necessary competition and regulatory approvals.
Babcock offered 361.6p in cash plus 0.701 Babcock shares for each VT share. Based on Babcock’s share price of 616p on Thursday, shares in VT will be valued at 793p each, which represents a more than 50 per cent premium to the price on February 12 before Babcock made the bid.
The completion of the deal will close the chapter on VT’s 150 years of engineering history.
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