Dockyard operator hits out at claims
Defence supplier Babcock International – operators of Devonport Dockyard and the doomed shipyard at Appledore in North Devon – has hit out at “false and malicious” claims made in a highly-critical report by a mystery analyst as it moved to assure people over its financial health. It has attacked a research paper posted last month by a firm called Boatman Capital.
Defence supplier Babcock International – operators of Devonport Dockyard and the doomed shipyard at Appledore in North Devon – has hit out at “false and malicious” claims made in a highly-critical report by a mystery analyst as it moved to assure people over its financial health.
The engineering group, which is the Ministry of Defence’s second largest contractor, insisted it “continues to enjoy a healthy financial position” following steep falls in its share price after a research paper posted last month by a firm called Boatman Capital.
Babcock said it “strongly refutes” claims made in the report by the “anonymous and so far untraceable” Boatman. “The group continues to seek to discover who is behind Boatman Capital,” it added. Shares lifted 3% after Babcock’s assurances.
The Boatman report alleged Babcock has a “terrible” relationship with the Ministry of Defence (MoD), while it also claimed Babcock has “systematically misled investors by burying bad news about its performance”.
It also launched a scathing and personal attack on Babcock’s bosses – chairman and defence industry veteran Mike Turner, and chief executive Archie Bethel. Shares were sent tumbling after the Boatman report, with the stock remaining under pressure.
In a vote of confidence in Babcock, a government spokesman said: “We monitor the health of all of our strategic suppliers, including Babcock, and remain committed to working with them on a wide range of programmes. Babcock plays a key part in equipping our world-leading armed forces and the MoD spent more than £1.7 billion with the company last year, supporting thousands of jobs across the nation.”
Babcock said it was delivering 128 contracts for the Government, with “future opportunities continuing to form a key part of our bidding pipeline”. But it said earlier this month it would close Appledore shipyard in Devon and offer relocation to 199 employees. That news was cited by the Boatman report.