Babcock on track in second half

Engineering support firm Babcock said it was enjoying buoyant markets as customers turned to it to make cost savings.

The company said it was confident of meeting its expectations for this financial year and delivering strong progress on last year.

Both civil and military markets remained strong as current and potential customers continued to seek increased efficiency and improved availability of assets, Babcock said.

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During the first half, cash generation across the group remained strong and the firm expects to see a reduction in net debt at the half year mark.

The trading update, which covered the six months to the end of September, noted the company's order book was unchanged at around £13bn.

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, Babcock said

The bid pipeline, which increased to £13bn at the time of the interim management statement in July, had also remained stable.

The firm said there was a significant number of large opportunities under bid, the majority of which we expect to be awarded over the next 18 months.