19th May 2014 07:47
LONDON (Alliance News) - Engineering support services company Babcock International Group PLC Monday reported an increase in profit and revenue for the full year, reflecting a strong performance across the business.
The FTSE 100 company - which specialises in managing complex assets and infrastructure - posted pretax profit of GBP218.8 million for the year ended March 31, up 20% from GBP181.8 million a year earlier, as revenue rose 9% to GBP3.21 billion from GBP3.03 billion.
Babcock said its Marine and Technology division saw revenue growth of 15% and organic growth of 13% before acquisitions and at constant exchange rates. Organic growth was driven by increased volumes in the UK due to the Queen Elizabeth aircraft carrier programme, the refit of the HMS Ocean assault ship, and increased work in Canada on a submarine programme, it said.
Babcock said LGE Process - acquired from The Weir Group in January 2013 for GBP23 million - also saw growth, which in turn boosted the Marine division.
The firm said revenue for its Defence and Security division increased 4% reflecting a good performance from its Future Strategic Tanker Aircraft joint venture, as well as increased infrastructure activities in both the UK and Germany.
Babcock's Rail business also made progress with strong demand for overhead line and
special project works. The acquisition of Conbras Ltd in the first half of the year added GBP26 million to total growth for the division, the firm said. Conbras, which operates in the facilities management sector in Brazil, was acquired in a deal worth GBP22 million in July 2013.
Babcock said its order book at the period-end stood at GBP11.5 billion, slightly down from GBP12.0 billion a year earlier. However, it said it expects its order book to increase significantly during the first half of this financial year, as it signs a number of new contracts.
Going forward, the order book of Avincis, an acquisition completed last week, also will be added to Babcock's total order book. At the end of December 2013, Avincis, which provides helicopter and fixed wing services, had an order book of GBP1.9 billion, which provided visibility of 85% of its anticipated revenue for its next financial year and 56% visibility for the year after.
Financially, the firm said group net debt increased to GBP533.7 million from GBP499.5 million, while group net cash outflow was GBP34.2 million compared with an inflow of GBP116.7 million in the corresponding period.
"Our markets remain buoyant and we enter the new financial year with a powerful platform for further growth in the UK and overseas," Chief Executive Peter Rogers said in a statement.
"Building on the strong growth in revenue and earnings delivered in the 2013/14 financial year, the board is confident the group will continue to make further strong progress in the 2014/15 financial year," he added.
On the back of a strong performance the company increased its final dividend to 16.4 pence from 14.4 pence, making a full-year dividend of 21.4 pence, up 13% from 19.0 pence.
Babcock shares were quoted up 0.8% at 1,198.00 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
BabcockWeir Group