Babcock YTD trading in line with FY expectations
Engineering services Babcock International said on Monday that trading in the first five months of the year was in line with internal expectations.
Babcock said year-to-date overall group revenues and profits were in line with expectations, with organic revenue growth largely offsetting the impact of disposals made in the prior year, while operating profit growth was predominately driven by efficiencies stemming from the firm's new operating model.
The FTSE 250-listed group stated that it anticipates a net cash outflow in the first half of the 2023 trading year, reflecting the timing of pension deficit payments, with a return to positive free cash flow in the second half.
Babcock also said order momentum was good and noted it had won "a number of new contract awards" in the period, including a ten-year support contract for the Queen Elizabeth class aircraft carriers, multiple orders for LGE equipment, two further contracts relating to Poland's frigate programme, MIECZNIK, and the renewal of its Royal Air Force's Hawk fleet support contract at RAF Valley.
As of 0830 BST, Babcock shares were up 1.14% at 309.50p.
Reporting by Iain Gilbert at Sharecast.com