Babcock Regulatory News (BAB)

18 January 2018

Babcock International Group PLC (Babcock or the Group)

Babcock awarded Italian firefighting contract

Babcock, a leading engineering services company, has been awarded a significant national contract by the Italian Ministry of Interior for a fully outsourced aerial firefighting service. Due to start in February 2018, the rebid is worth a total of around £160 million for the first four years and includes an option for a further four-year extension which could increase this value to around £320 million.

The contract, which Babcock has been successfully operating for seven years, will see the delivery of firefighting services across up to ten bases across Italy, together with fleet management, operations and maintenance of 19 CL-415 Canadair aircraft owned by the Italian Government.

Babcock Chief Executive Archie Bethel said:

"This is a flagship contract for Babcock's Aviation business and further demonstrates our international aerial firefighting capability. Aerial firefighting is a vital and life-saving service, as we saw from the devastating fires Europe experienced in 2017. I am delighted Babcock has again been chosen to deliver this nationally important contract across Italy."

Babcock's aviation business has also been awarded a new contract in Sweden to operate a patient transfer service for the people of Västra Götaland County, Sweden. This is a new Emergency Medical Services contract, which will see the Group operate a specially-configured AW169 from a new base in Gothenburg. Flights will start in 2018 when the operation transfers to Babcock from the current in-house provider. The four-year contract, with further options for two years' extensions, has a total value of up to 380 million SEK (£34m).

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