We have an overriding objective that drives the way we do business:
To maintain our position as the leading engineering support services business in the UK and selected overseas markets, thereby creating value for our stakeholders - our customers, our investors and our people.
We will achieve this through:
- Leading market positions
- Working with preferred customers
- Supporting customer focused, long term relationships
- Integrating engineering and technical expertise
- Balancing risk and reward
- Maintaining an excellent safety record
Please also see Babcock Library and Annual and Half Year Reports for further information.
We expect our businesses to be one of the top three in their respective market sectors. If they are not, they will have clear plans to acheive this goal.
During the year we have consolidated our leading position in all our divisions through acquisitions and major contract wins.
- Sole provider of support to the Royal Navy's submarine fleet
- Largest Prime contractor for Defence Estates
- The sole distributor of Volvo equipment in South Africa
We seek to work with customers who own large strategically important assets. These customers tend to be government departments, public bodies or private companies operating in highly regulated markets.
The majority of our revenue is derived from our preferred customer base. This is consistent with previous years.
- The MoD is our largest customer in both the Marine and Defence divisions
- Network Rail, our Rail division's largest customer, owns and operates Britain's rail infrastructure
- We provide support to British Energy's fleet of AGR nuclear power stations Eskom, the South African power utility
Customer focused, long-term relationships
We seek to work collaboratively with our customers to support the long-term nature of our contracts.
We have been awarded a number of contracts where the emphasis is on long-term partnerships rather than on short-term tasks.
- Ten year Submarine Engineering Support Contract for Royal Navy's submarine fleet
- WSMI contracts to provide naval base and water front support at Devonport and Faslane to 2013
- 30 year RSME training and training support contract
- Five year in-service submarine support contract for Canadian government - with option to extend to ten years
Integrated engineering and technicalexpertise
We seek to use our skills, integrating engineering and technical expertise to deliver projects and long-term asset management.
The majority of our employees are technically qualified and their skills are used to support our customers' strategically important assets.
- The refit of HMS Victorious required 2.2 million skilled engineering man hours WSMI contracts to provide naval base and water front support at Devonport and Faslane to 2013 Babcock engineers are providing around 50% of the design input in the CVF programme CARE, developed by Networks, is a system which forecasts degradation of steel structures in the electricity transmission and other markets
We seek to enter into contracts that fairly balance the risk and reward with our customers, so we can each share the financial effects of success or failure.
The Terms of Business Agreement (ToBA) being negotiated with the MoD will move all naval support contracts away from a cost plus to a pain/gain share basis.
- Successful delivery of the following contracts will ensure maximum benefits are shared by Babcock and the MoD HMS
- Vigilant LOP(R) WSMI extension at Devonport East and South West Regional Primes
Maintain excellent safety record
We expect all our divisions to deliver a sector - leading safety performance. We believe all our employees and others working on or visiting our operations should be able to return home safe and well at the endof the working day.
During 2008/09 we reduced our RIDDOR frequency rate by 13%. Over two years this has reduced by 49%.
- British Safety Council Sword of Honour - Marine
- RoSPA Gold Award - Nuclear, Airports, Networks
- British Safety Council 5 star award - Marine
- RoSPA Sector Award (facilities management) - Infrastructure Services
- British Safety Council International Award - Infrastructure Services, Networks