Revenue and profit gains for Babcock
By Sarah Ann McCay19 May 2014
Babcock International Group is claiming a strong start to 2014, with both underlying revenue and operating profit up 9% for the first quarter.
The UK-based engineering support services firm posted underlying revenue of £3.5 billion (€4.3 billion), up from £3.2 billion (€3.9 billion) for the first quarter of 2013.
Underlying operating profit was £377.9 million (€460 million), an increase on 2013’s figure of £345.6 million (€420 million).
Profit before tax was up 15% at £316.1 million (€388 million), compared with £275 million (€340 million) at the start of last year.
Future business also looks positive, with Babcock announcing a bid pipeline of £17.5 billion (€21.5 billion) compared to £15.5 billion (€19 billion) for the same period in 2013.
The firm completed the acquisition of the Avincis Group at the end of 2013 as part of strategic growth objectives.
Peter Rogers, chief executive, said, “Babcock maintained its record of delivering strong revenue and profit growth with all our divisions making progress, building on our leading position in engineering support services.
"We produced a top-class financial performance, driving strong cash flow and cash conversion, delivering another year of growth in shareholder value."
He continued, "Our markets remain buoyant and we enter the new financial year with a powerful platform for further growth in the UK and overseas.
"Building on the strong growth in revenue and earnings delivered in the 2013/14 financial year, the board is confident the group will continue to make further strong progress in the 2014/15 financial year.”