Babcock profits fall 34% as Covid hits civil aerospace
Defence company Babcock said profits fell by more than a third in the nine months to date as the coronavirus pandemic hit its civil aviation business.
It warned on Friday that current and future financial years could suffer negative impacts after based on early indications of a review into balance sheet and contract profitability.
Underlying operating profit in the nine months year-to-date was £202m, down 34% amid a negative impact from civil nuclear insourcing, Covid-19 and civil aviation, the company said.
Revenue fell 3% to £3.3bn, while order intake was £3.1bn with Babcock’s order book standing at £16.8 billion at December 31 down from £17.6bn seen at March 30, 2020.
The company continued to withhold guidance, given economic uncertainty.
“Uncertainty remains around the outturn for this financial year, especially given that our fourth quarter is historically our strongest and that the COVID-19 situation has worsened in most of our markets,” Babcock said.