25th Sep 2019 08:16
(Alliance News) - Babcock International PLC said Wednesday that trading is in line with expectations with its marine business performing well despite headwinds in its Nuclear segment.
Since the start of April, the FTSE 250-listed engineering firm said trading has been "in line" with expectations.
Its Marine unit was described as "performing well" with strong orders and increased activity across its UK warship support business. Meanwhile, the Nuclear unit has experienced "increased" activity levels in defence but markets remain challenging for civil nuclear.
Babcock reiterated its guidance given in May for the financial year ending March 2020. It expects underlying revenue to be around GBP4.9 billion with underlying operating profit between GBP515 million and GBP535 million. Babcock also expects free cash flow of "over" GBP250 million and net debt is forecast to continue to fall.
For the year that ended March 2019, Babcock generated GBP588.4 million underlying operating profit on underlying revenue of GBP5.16 billion.
Shares in Babcock were 4.1% higher at 563.20 pence in London on Wednesday.
By Ahren Lester; [email protected]
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