MoD provider Babcock insists funds are wholesome after ‘malicious’ report | Enterprise

Babcock Worldwide, which counts the Ministry of Defence as its greatest buyer, has insisted its funds are wholesome after what it described as “false and malicious” claims from a shadowy analyst group.

The FTSE250 engineering providers firm has come below assault from Boatman Capital Analysis, which late final week revealed a report criticising the corporate’s monetary efficiency.

Claims made by Boatman, which isn’t traceable on Firms Home, embrace that Babcock drastically overpaid when it struck a £1.6bn deal for Avincis, one of many world’s largest suppliers of helicopters for search and rescue missions, in 2014.

The report prompted Babcock to subject an unscheduled assertion to traders denying the claims. “Babcock is issuing this assertion to deal with latest hypothesis following the discharge of a report by the nameless and up to now untraceable Boatman Capital,” the corporate stated.

“This report included many false and malicious statements which the group strongly refutes. On the similar time, the group continues to hunt to find who’s behind Boatman Capital.”

The investor replace additionally contained an announcement from the UK authorities supporting Babcock, though it didn’t immediately handle the declare concerning delays and potential losses for Babcock on the Warrior mild tank renewal programme.

“We monitor the well being of all of our strategic suppliers, together with Babcock, and stay dedicated to working with them on a variety of programmes,” stated a spokesman for the UK authorities.

“Babcock performs a key half in equipping our world main armed forces and the MoD spent greater than £1.7bn with the corporate final yr, supporting 1000’s of jobs throughout the nation.”

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Babcock, which is the MoD’s second largest provider and is engaged on 128 contracts for the federal government, stated the corporate “continues to get pleasure from a wholesome monetary place”.

Boatman, whose web site says it’s “guiding traders throughout troubled waters”, first moved in opposition to Babcock in October, claiming the corporate had been “burying unhealthy information about its efficiency” and that its management staff was “less than the job”.

Boatman additionally made claims about Babcock’s Appledore shipyard in Devon, which the corporate introduced would shut in March after it failed to search out sufficient work to maintain the yard.

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