28th Sep 2023 09:32
Babcock International Group PLC - London-based aerospace, defence and nuclear engineering services firm - Ahead of annual general meeting at 1030 BST, says trading has been encouraging since the start of its financial year that will end on March 31, noting good organic revenue growth, improved operational performance and higher cash flow compared to a year earlier. Says organic revenue growth is offsetting the effects of disposals in the prior year, including contract phasing in Marine and further growth in Nuclear infrastructure programmes. Says underlying operating profit increased, driven by revenue growth and continued operational improvement driving underlying operating margin expansion. Says operating also benefitted from "the earlier than anticipated" receipt of initial licence fees associated with the Polish Miecznik frigate programme. Says underlying operating cash flow in the period was higher than expected, largely due to contract phasing.
Looking ahead, says: "New programme wins, contract renewals and progress on the group's opportunity pipeline remain strong, supporting the board's unchanged expectations for another year of organic revenue growth, further underlying margin expansion, improved free cash flow and progress towards the group's medium-term guidance."
Current stock price: 411.40 pence, up 5.9%
12-month change: up 41%
By Greg Rosenvinge, Alliance News reporter
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