11th Feb 2014 08:51
LONDON (Alliance News) - Babcock International Group PLC Tuesday said its bid pipeline has increased by GBP3.0 billion to GBP18.5 billion since the half-year end, making good on its promise at the time that "significant" long-term growth opportunities were being progressed.
The engineering group was Tuesday quoted at 1,370.28 pence, up 28.28 pence, or 2.1%, placing it behind only miner Fresnillo PLC in the FTSE 100's top gainers.
In a statement covering the period from October 1, 2013, Babcock said its higher bid pipeline, together with the significant opportunities still being tracked, will be the key driver of organic growth over the next few years.
"Our business model, the scale of our operations, the depth and breadth of our experience and our track record of delivering operational and financial efficiencies provide an excellent platform to benefit from the positive markets which continue to offer us medium and long-term opportunities in both the UK and overseas. The strength of the order book and bid pipeline continue to provide excellent visibility of future revenue streams," Babcock said in a statement.
"Babcock has delivered strong growth in revenue and earnings in the financial year to date. In light of this the board is confident that the group will continue to make further strong progress this year, in line with its expectations."
Babcock said it traded well in the third-quarter, with strong activity in all its divisions. It also said it has overcome the depreciation of the South African rand, which has been the bane of a number of international companies in the past year or so, with financial performance in line with its expectations.
"The group continues to experience positive market conditions across its business units in the UK and overseas. The general economic climate continues to drive both public and private sector customers to consider new or additional outsourcing of essential support activities as a way of delivering increased financial and operational efficiency," Babcock said in its statement.
By Samuel Agini; [email protected]; @samuelagini
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