23rd Apr 2025 09:49
(Alliance News) - Babcock International Group PLC on Wednesday said it continues to see momentum across its business as it reported higher annual sales and profit.
Shares in the London-based aerospace, defence and nuclear engineering services company rose 3.6% to 775.50 pence each in London on Wednesday morning.
Revenue rose 11% at constant currency to GBP4.83 billion in the financial year to March 31, with a continuation of the strong growth noted at the third quarter update in February, particularly in the Nuclear and Marine divisions.
However, this was slightly below the GBP4.9 billion Babcock had forecast in February.
In a trading update, Babcock said underlying operating profit grew 17% to GBP363 million with an underlying operating margin of 7.5%.
In the financial year to March 2024, Babcock reported revenue of GBP4.39 billion, underlying operating profit of GBP237.8 million and an underlying operating margin of 5.4%.
Chief Executive David Lockwood said: "In an uncertain world, we continue to see momentum across the business. This has driven strong performance in all four of our divisions in the fourth quarter, resulting in full year underlying operating profit ahead of expectations."
Babcock reported underlying operating cash conversion of 80% in the financial year, boosted by working capital timing. Underlying free cash flow in the year totalled GBP153 million, despite an additional accelerated pension deficit repair contribution of GBP40 million.
Net debt including leases reduced to GBP373 million at March 31 from GBP435 million a year prior, or to GBP101 million excluding leases from GBP211 million.
The contracted order backlog was GBP10.1 billion as at March 31, up from GBP9.5 billion at the half-year stage, "providing a strong platform for sustained growth."
By Jeremy Cutler, Alliance News reporter
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