21st Jul 2014 06:55
LONDON (Alliance News) - Babcock International Group PLC said Monday that it remains confident the company will continue to make strong progress during this year and that its results for the 2014/15 financial year will be in line with its expectations after recording high activity levels since the beginning of the year.
In an interim management statement for the period since April 1, the support services company said the financial year has started well across all of its business, as activity levels remain high and that trading is in line with its expectations.
Babcock said its bid pipeline currently stands at GBP16.0 billion, including the GBP1 billion bid pipeline of recently acquired Avincis Group. The company also has around GBP3 billion of contracts still at preferred bidder stage within the bid pipeline which are expected to transfer to the order book on contract signature during the first-half of the year, it said.
At the end of the last financial year, Babcock was announced as preferred bidder on a number of major contracts that are set to become operational during this financial year. Transition and mobilisation activities for these projects are all proceeding well, said the FTSE 100-listed company, with no delays to expected contract signature or start dates and no changes to anticipated contract terms.
Since the acquisition of the Avincis in May, the company said the business has performed in line with expectations set out in the acquisition documentation, with continuing high levels of order intake. "Integration activities are progressing well, reflecting the high levels of co-operation and planning prior to completion," said Babcock.
Looking ahead the company said that it remains positive for prospects in its key markets as they continue to offer "significant" medium and long-term growth opportunities and that the strong progress made since the start of the year is set to continue, leading to results for its 2014/15 financial year in line with expectations.
By Alice Attwood; [email protected]; @AliceAtAlliance
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