Babcock, the international aerospace, defence and security company, has completed the sale of its oil and gas aviation business to CHC Group for a cash consideration of £10 million.
The oil and gas business, which is part of the group’s aviation sector, provides offshore oil and gas crew transportation services in the UK, Denmark and Australia.
It is headquartered in Aberdeen and employs over 500 people and operates around 30 aircraft across its three locations.
For the year ending 31 March 2021, it had revenue of £154m, a loss before tax of £2m and underlying operating profit of £2m. As of 31 March 2021, it had gross assets of £256m, net assets excluding cash of £21m and net lease liabilities of £142m.
The sale is part of Babcock’s targeted disposal programme, which aims to generate at least £400 million of proceeds. Proceeds from the transaction will be used to reduce net debt.
The agreement constitutes a class 2 transaction for the purposes of the UK Financial Conduct Authority’s Listing Rules, and as such does not require Babcock shareholders’ approval.
David Lockwood, Babcock chief executive, said: “This disposal is part of our plan to streamline and focus the group on our key markets.
“Divesting at least £400m of businesses will enable us to reduce complexity and increase our focus as we return Babcock to strength. The oil and gas aviation business has found a new home and we wish them all the best for the future.”
Whisky Investment Partners sponsor Scottish football legends in charity golf event
Specialist cask traders Whisky Investment Partners are sponsoring Scotland’s first-ever Football Legends Golf Series, a charity tournament bringing together famous names from Celtic, Rangers, Hearts and Aberdeen.
Taking place on Friday at the world-famous Carrick Golf Course at Cameron House, the event will raise money in aid of Glasgow’s Prince and Princess of Wales Hospice. Whisky Investment Partners will be the sole alcohol brand sponsor for the Scottish leg of the six-part series, with a further five regional tournaments happening across the UK.
Stuart Patrick: Glasgow needs more help to rebound
Opinion: On a recent 10-day break in London I noted local media coverage of current London Underground usage data.
It revealed weekday traffic in August has been reaching over 50% per cent of pre-pandemic levels for the first time since the crisis began but with stations predominantly serving office workers such as Bank and Canary Wharf still a long way short of that. Unlike on previous visits to the capital, not once did I fail to get a seat.
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