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
- Maintain an excellent health and 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 market sector. If they are not, they will have clear plans to acheive this goal.
Through a number of major contract wins in the last year we have strengthened our market positions.
- 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
- The UK's largest provider of vocational training
Preferred customer characteristics
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
- The Babcock Dounreay Partnership will deliver the UK's first major closure project for the NDA at Dounreay
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
- 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 technical expertise
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.
- 2,500 qualified engineers in our Marine and Technology division work on all aspects of the UK's submarine fleet, some of the most complex machines in the world. Work has started on HMS Vengeance's 3½ year, long overhaul period (refuel) (LOP(R))
- 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
Balancing risk and reward
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.
Contracts with new customers, like the fleet management contract with Lafarge, are moving 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
Excellent health and 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 end of the working day.
This year we reduced our overall RIDDOR frequency rate by 7%. At our Rosyth site RIDDOR dropped by 86%.
- 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