Babcock is the UK’s leading engineering support services company. We believe our business model and strategy, built around our ‘trusted to deliver’ reputation, set us apart from others in our markets. They have been a strong foundation for our success in recent years and are vital to ensuring we continue to deliver value in the future.

What we do

Deliver complex, integrated output contracts. Babcock thrives in complex environments. We specialise in delivering services, operating or managing assets and programmes that are complex, critical and bespoke. We combine technical and engineering capabilities to provide a single integrated solution. We deliver this through long-term, output based contracts that are designed so our customers achieve the efficiency and value they require.

How we do it

Underpinning everything we do are our market-leading positions, the breadth and depth of knowledge and experience of our workforce and the unique infrastructures we own or operate.

Our strategic objective is to grow from our current positions in both the UK and overseas, delivering sustainable value for our shareholders. To achieve this objective, we have created and will continue to grow a balanced portfolio of businesses based on our strategy.

The way we operate

We believe, our ‘trusted to deliver’ reputation is key to our success and sets us apart from others in our sector. We manage successful, long-term partnering relationships with our customers by delegating responsibility to customer-facing contract managers within the business units so we can be responsive to their needs. This is balanced by strict central financial controls.

Focused on customers

Our financial performance and ability to deliver value relies on meeting or exceeding our customers’ needs. To do this we aim to develop long-term embedded relationships built on openness and transparency, creating opportunities to draw on the breadth and depth of knowledge and experience across the Babcock Group.

Leading positions in selected markets

We have, or seek to build, leading positions in our market sectors. We own unique strategic infrastructures and, in an environment where engineering knowledge and skills are scarce, we believe we have an unrivalled workforce with significant scale and depth of expertise. Many of our customers no longer have this depth of knowledge available within their own organisations.

Delivering Value To

Our Employees

We seek to create value for our employees by:

  • creating a safe working environment
  • providing continuous professional development
  • providing equal opportunities for all
  • creating a rewarding place to work.

Our skilled workforce enables us to meet the operational requirements of our customers.

Our Customers

We seek to create value for our customers by:

  • working through long-term collaborative relationships
  • reducing the cost of delivering key services
  • increasing asset availability or providing life-extensions
  • providing knowledge and skills to manage complex transformation programmes.

Long-term successful relationships with our customers help create strong cash flows that can be used to generate growth and shareholder value.

Our Shareholders

We seek to create value for our shareholders by:

  • returning money to them through dividends
  • investing in, and growing, our business
  • growing the value of their investment over time.

How we work

Babcock manages critically important assets that help to bring power to our homes and businesses, keep trains running safely, ensure mobile phone networks stay operational and help our armed forces defend national interests.

Managing asset portfolios of this scale and complexity requires modern technical skills, a thorough knowledge of the operating environment and the flexibility to meet changing needs. Which is why, when selecting a service partner who can be trusted to deliver, Babcock is chosen again and again.

Our approach is a straightforward one:

  • Understand what our stakeholders want - our customers, our investors and our people.
  • Keep their interests in balance.
  • Decide upon a clear strategy.
  • Select the right people to implement it.
  • Set achievable targets.
  • Delegate responsibility to the people dealing with customers on a daily basis.
  • The way we do business is central to the fulfilment of our long-term Group strategy.
  • We believe that this strategy will be best achieved by applying the following principles to our business activity:
  • Maintaining a customer-focused organisation with a strong partnering culture.
  • Growing a balanced portfolio of businesses that are positioned within the top three in their marketplace.
  • Winning long-term contracts with critical asset and infrastructure owners, primarily government bodies and blue chip companies.
  • Delivering year-on-year growth and shareholder returns in line with our expectations.
  • Balancing risk and reward.
  • Maintaining an excellent safety record.

This strategy has been the foundation of Babcock's success over the years and will continue to serve us well for the future.

View our contract case studies to find out more about how we approach our customers complex needs and provide affordable solutions.

Customer Service Philosophy

Strong customer relationships are at the heart of any successful services business. We pride ourselves on our ability to operate in partnership with our customers, working closely to deliver jointly agreed objectives and knowing each customer and their environment well enough to be able to anticipate their future requirements.

So how have we established strong organisational partnerships? Babcock believes that the most enduring partnering arrangements are built around seven key elements:

  • Shared goals and objectives
  • Mutual trust
  • Being honest in all dealings
  • Identifying and understanding mutual interests
  • Having strong personal relationships
  • Taking a long-term view
  • Meeting, even exceeding, the expected outcomes

In implementing such arrangements, there can be no shortcuts or half measures nor should the parties be put off by early problems. Building successful relationships takes hard work, good communication and total honesty.

In addition, both parties must understand how the other defines 'success' in terms of their business arrangements and this must be expressed in a form that is both identifiable and measurable.

Since the outcome of this approach cannot be left to chance, we commission regular reviews of the workings of our business partnering arrangements to assess where they are working well and also to look for the telltale signs of where they might fail.

Our aim is to build an enduring reputation that Babcock is not just an organisation which delivers the goods, but is easy and pleasurable to do business with.

Service Performance Philosophy

Whilst the strength of customer relationships is crucial to any service business, it should never supplant the importance of contract deliverables. These are the foundations of our past, and future, success. We have built a reputation as an organisation that delivers what it promises. In addition, we must measure our performance by the metrics used by our customers, and the bodies who regulate them.

Now we must take one step further and not just be happy with meeting basic contractual requirements, but develop a desire to always exceed our own customers' expectations.

Only then will we be able to build a reputation as an organisation that anticipates the need to change and always goes that extra yard.

Value For Shareholders

Many of our shareholders have been long-term investors in Babcock and have seen the value of their investment rise significantly over recent years, benefiting as our company has grown in scale and financial security. Those who were fortunate enough to be invested in Babcock in 2003 have seen earnings per share grow from 5.7 pence to 62.2 pence in the 2012/13 financial year.

However these investors are looking forward. They have chosen Babcock because they are confident we can continue to meet the growth in revenues and profits predicted by the market and return money to them in the form of steadily increasing dividends. Their confidence is underpinned by the strength of our orderbook and the visibility of future earnings this gives as well as our ability to generate strong cash flows.

The confidence investors have in Babcock is supported by a number of other things:

  • Our open and honest approach to communication
  • Our commitment to 'tell it as it is' and the consistency with which we have met or exceeded growth targets
  • The clarity of our strategic plan and the competitive advantage this has given us
  • Our balanced approach to risk management
  • Our effective governance structures
  • The strength of our management teams

Everyone has a part to play in ensuring we continue to focus on these issues and deliver strong financial results. Investor confidence in Babcock has taken a long time to build and, by ensuring we continue to do the important things well and don't disappoint, it will continue to be enhanced in the future.

Developing Our People

Our business arrangements with our customers require us to deliver services on a complex array of projects and assets.

Our people have an impressive range of skills and competencies: engineering, management, technical, commercial, administrative and developmental to name but a few.

As our business expands the development of our people, present and future, is a critical part of our business development activity.

Employee development covers a broad spectrum from apprenticeships through graduate development to continuing professional development. In addition, we have created, in partnership with the Strathclyde Business School, the Babcock Academy which helps refresh and enhance the strategic planning, commercial and leadership skills of our managers and senior executives.

Given our commitment to employee development across the board, employees should enjoy a long and satisfying career at Babcock in an environment that values their contribution, rewards them properly, and is absolutely committed to their safety and wellbeing.

Working with Babcock

As the market leading FTSE 100 UK engineering support services company, we are trusted to deliver critical support to government and key industry organisations across the globe. As such we have a duty to ensure that our customers’ money is spent efficiently and contracts are managed effectively.

Our customers rely on us to manage a number of suppliers and sub-contractors on their behalf. We need to ensure that the supply chain for all our contracts adhere to our standard or ethical behaviour, environmental and other working policies.

Across our diverse needs we seek to work with high quality suppliers, both large and small, who support our values of Professionalism, Sustainable Profitable Growth and Innovation.

If you are interested in supplying Babcock International Group then please fill in a Supplier Registration form here.


Babcock seeks to engage with the communities around our sites and operations and to provide opportunities for employees to assist with local initiatives and support local charities that are important to them. We have Group-wide guidelines setting out our approach to charitable donations, our commitment to the communities in which we operate and the broader interests of our customers. As well as ensuring financial donations are appropriately targeted, the guidelines also encourage active engagement in local community support programmes.

At a Group level, we have continued to provide corporate sponsorship for the Soldiers, Sailors, Airmen and Families Association (SSAFA), the forces charity providing support to service families in times of need.