Babcock International backs annual outlook amid "good visibility"

(Alliance News) - Babcock International Group PLC on Tuesday maintained annual guidance after a ...

Alliance News 22 November, 2022 | 10:07AM
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(Alliance News) - Babcock International Group PLC on Tuesday maintained annual guidance after a first-half revenue improvement, though profit declined.

The London-based aerospace, defence and nuclear engineering services firm said its pretax profit in the six months that ended September 30 fell by 13% to GBP51.2 million from GBP58.8 million a year ago.

Its revenue was up 0.5% to GBP2.14 billion from GBP2.13 billion.

Babcock explained its falling profit was largely down to a GBP28.7 million non-cash mark-to-market movement on currency derivative contracts.

It declared no interim dividend for the half year period, unchanged from a year earlier.

Babcock maintained its overall expectations for financial 2023, expecting to turn free cash flow positive in the second half.

"With over 90% of FY23 revenue contracted as at 30 September 2022, we have good visibility of the top line," the company added.

Shares in Babcock were up 4.4% to 302.62 pence in London on Tuesday morning.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Babcock International Group PLC 523.50 GBX 0.77 -

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