Strong progress at Babcock, hikes dividend

Engineering support services company Babcock reported a robust set of annual results, lifted its dividend payment and said it is well positioned for strong progress in the year ahead.

Engineering support services company Babcock reported a robust set of annual results, lifted its dividend payment and said it is well positioned for strong progress in the year ahead.

Underlying pre-tax profit rose 16% to £317.8m for the year ended March 31st 2013 compared to a year earlier. Revenue climbed 6% to £3.243bn as it traded well on a healthy pipeline of contracts in civil and military markets.

The firm, which provides engineering support for the British Royal Navy, said operating profit rose to £376.6m from £329.0m while basic earnings per share increased 16% to 71.3p.

The group's order book slipped to £12bn from £13bn a year earlier but it said significant future opportunities are being progressed with the bid pipeline increasing to £15.5bn from £9.5bn in 2012.

Chief Executive Peter Rogers commented: "We generated good growth in underlying revenue and further improved our operational performance to deliver increases in operating margin, underlying earnings and shareholder value."

"The very substantial expansion of our bid pipeline reflects the continued buoyancy of our markets - public and private sector, civil and defence, UK and overseas. With our strong order book and financial base, we are well positioned for further strong progress this year."

Underlining its confidence in future trading Babcock increased its full year dividend 16% to 26.3p.

Net debt during the year fell to £550.6m from £641.1m.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021