10th Feb 2015 07:11
LONDON (Alliance News) - Babcock International Group PLC on Tuesday said it expects to meet its expectations for the full year to the end of March on the back of a strong performance from its existing business and from the acquisition of helicopter group Avincis.
The FTSE 100-listed support services company said it entered the fourth quarter of its financial year, starting January 1, with its order book at around GBP20 billion and a bid pipeline of around GBP13 billion. Its order book provides 70% revenue visibility for its 2015-16 financial year, it said.
The group said its financial position remains healthy, with good cash generation and an expected full-year operating cash conversion rate, excluding capital expenditure, of over 100%. Including capital expenditure, the rate will be around 80%, it said.
Babcock said its outlook looks strong both in the UK and in its international markets, adding its order book provides strong revenue visibility. The group does expect to take a hit from the weaker euro and the depreciating South African rand, but said the deterioration of the euro should not impact its cashflow as it maintained GBP550 million of debt to hedge its European business.
By Sam Unsted; [email protected]; @SamUAtAlliance
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