Babcock hits back at ‘false’ claims from mystery firm

BaBcock has hit back at ‘false and malicious’ claims made against it by a shadowy research firm.

The FTSE 250 defence contractor, which works on Uk military aeroplanes and naval bases, yesterday reassured investors about its finances and even quoted a Government spokesman to back it up.

The unusual move followed a series of highly critical research notes published last month by a firm called Boatman capital, which has accused Babcock of ‘burying bad news’ and overpaying in a takeover deal.

Boatman is reportedly based in Panama but its directors are not listed. The company did not respond to a request for comment yesterday.

However, Babcock said it strongly rejected the claims and was trying to find out who ran Boatman. It described the mysterious research firm as ‘anonymous and so far untraceable’.

‘This report included many false and malicious statements,’ Babcock’s statement said. ‘We can confirm Babcock continues to enjoy a healthy financial position with cash generation in line with expectations.’

a Government spokesman said: ‘We monitor the health of all of our strategic suppliers, including Babcock, and remain committed to working with them on a wide range of programmes.’

However, last night Babcock was facing fresh questions about its relationship with the Ministry of Defence. The firm has been placed on watch over its handling of a submarine maintenance contract, according to the Financial Times. one official reportedly said: ‘They need to pull their finger out.’

Boatman capital’s report alleged that Babcock had a ‘terrible’ relationship with the Ministry of Defence, while claiming Babcock had misled investors over its performance.

It also attacked chairman and defence industry veteran Mike Turner and chief executive archie Bethel, claiming the pair were ‘not up to the job’.