Strong start for Babcock International
Defence contractor Babcock International has made a strong start to its financial year.
For the six months to the end of September revenue was up two per cent from £2.14 billion to £2.17bn.
The group, which includes the Defence Support Group operation at MoD Donnington in Telford and the Babcock Vehicle Engineering specialist vehicle conversions business at Aldridge, saw operating profit almost double from £72.8 million to £144.2m
Chief executive David Lockwood said: "We have made a strong start to the year, as we continue to build on the exciting momentum we see across the Group. We are delivering for our customers, reducing risk and positioning for growth through a number of significant new global teaming agreements.
"We have a clear capital allocation policy, which is providing the Group with the flexibility it needs to capture the growing number of value creation opportunities we see ahead. We are reinstating our dividend following a four-year hiatus, reflecting our confidence in the future, and our expectations for the full year remain unchanged."
The board's expectations are for another year of organic revenue growth, underlying operating margin expansion and positive cash flow generation.