Engineering news
Babcock International has reported a 7% increase in pre-tax profit to £228.4 million for the six months to 30 September 2016.
The company, whose main source of income is the Ministry of Defence, posted revenue rose by 6% to £2.5 billion in the six-month period. Meanwhile, operating profit increased by 7% to £269.7 million.
Chief executive Archie Bethel said: "Babcock continues to perform; delivering growth in revenue, profit and earnings, and maintaining healthy levels of cash generation and conversion. The long-term visibility provided by our £20 billion order book and substantial pipeline of opportunities underpins our future growth.
“Our UK markets remain positive, with the group well positioned for the significant future outsourcing opportunities expected from both our defence and civil customers, and we see growing international demand for our specialist and complex engineering support services. Despite slightly slower organic growth, the board expects the full-year results to be in line with its expectations. We therefore remain confident of making good progress both this year and beyond."
Earlier this week, France’s Direction Générale de l'Armement recommended that Babcock be awarded a contract to provide and maintain a training platform and related services for the French Air Force.
Babcock’s share of the contract is expected to be worth more then €400 million, around half of which relates to the financing of assets for the customer.
The company said it is in advanced discussions with a French industrial partner regarding the execution of the 11-year contract to provide new training aircraft, related simulators and modernised training facilities for the training of fighter jet crews.
The final award of the contract is subject to the successful completion of approval processes.
In addition, Babcock finalised a multi-million pound joint venture with Oman Drydock Company. It will provide local and international navies with engineering support services at Duqm Port in Oman, including the UK’s new Elizabeth-class aircraft carriers.