Babcock refutes damaging speculation, reassures investors of healthy financial position

It said its statement was intended to counter a report by Boatman Capital which it called anonymous and untraceable.

British engineer Babcock refuted damaging speculation about it which arose from an anonymous report, issuing a statement on Monday to reassure investors that the company is in a healthy financial position.

Babcock, which provides specialist services to groups including Britain's defence ministry, said it would provide an update on earnings on Nov. 21, but in the meantime said cash generation was in line with its expectations and it continued to reduce its debt.

It said its statement was intended to counter a report by Boatman Capital which it called anonymous and untraceable.

"This report included many false and malicious statements which the group strongly refutes," Babcock said in its statement.