Babcock remains positive
02 October 2012
UK engineering support services company Babcock International Group has reported that trading across the group continued to be positive during the first half of the 2012/13 financial year.
It said it remained confident of meeting its expectations for this financial year and delivering strong progress on last year.
Babcock’s half-year results will be released on 6 November.
In a trading update, it said that its businesses continued to experience buoyant market conditions, in both civil and military markets.
It said that during the first half, cash generation across the group had remained strong and as a result it expected to see further reduction in net debt at the half year.
The order book was reported to have remained stable at around £13 billion (€16.2 billion). Across the divisions there has been a regular flow of smaller contract wins and extensions moving from the bid pipeline during the first half of the year.
The company said, “Reflecting the buoyant market conditions we are experiencing, we continue to identify new opportunities before a formal competitive process has begun. During the first half, these have included both civil and military opportunities, in the UK and overseas, where we can benefit from our expertise and the strength of our market positions.”
Babcock said that in order to achieve closer alignment of its operational businesses with its customers’ requirements, the defence-related elements of its Infrastructure business unit had been transferred from the Support Services division to the Defence & Security division.
Its military infrastructure and facilities management capability and its military base support activities will be brought together to create “an integrated service offering which will further reinforce our strong position focusing on the expanded role of the Defence Infrastructure Organisation (DIO) and the Next Generation Estates contracts currently being procured”.