Babcock International Group PLC Annual General Meeting Trading Update (9093K)
13 July 2017 - 4:00PM
UK Regulatory
TIDMBAB
RNS Number : 9093K
Babcock International Group PLC
13 July 2017
13 July 2017
Babcock International Group PLC (Babcock or the Group)
Annual General Meeting Trading Update
Prior to today's Annual General Meeting, Babcock, the
engineering services company, is issuing the following trading
update for the period from 1 April 2017.
Overview and outlook
The financial year has started well, with the Group trading in
line with our expectations and the outlook for the year unchanged.
Since the full year results announcement on 24 May 2017, visibility
has continued to improve, with around 82% of revenue now in place
for 2017/18 and 55% for 2018/19. The order book and bid pipeline of
opportunities have remained stable at around GBP19.0 billion and
GBP10.5 billion respectively following contract wins, and the
tracking pipeline remains buoyant, providing confidence in our
ability to grow in line with our expectations this year and over
the medium term.
Operational Review
The Group has continued to make progress over the last seven
weeks, with work proceeding as expected on our long-term contracts.
Awards since the start of the financial year include a new
contract, worth up to GBP500 million, to operate a fleet of
specialist fixed-wing aircraft for the Norwegian Health Service
from summer 2019. We were also formally awarded and have begun
mobilisation to deliver all four elements of a MOD programme to
become the Marine Systems Support Partner and Systems Technical
Authority for the Royal Navy's new Queen Elizabeth Class Aircraft
Carriers and Type 45 Destroyers, expected to be worth in excess of
GBP360 million over seven years. Our joint venture with the Oman
Drydock Company has formally begun with the provision of support to
vessels including US Navy ships.
Other contracts awarded since the start of the financial year
include further work on the nuclear submarine decommissioning
demonstrator project and the renewal of a number of Emergency
Services aviation contracts, including two Helicopter Emergency
Medical Services contracts in Queensland, Australia. We have
renewed two apprentice training contracts in the UK, and our Marine
business has expanded its in-service support footprint in
Canada.
Financial position
The Group continues to maintain a healthy financial position. As
previously indicated, we expect to further reduce debt during the
second half of 2017/18 and achieve a net debt to EBITDA ratio of
around 1.6 times by the end of the year.
Ends
Enquiries
Babcock International
Group PLC 020 7355 5300
Franco Martinelli
Kate Hill
FTI Consulting 020 3727 1340
Andrew Lorenz
Nick Hasell
This information is provided by RNS
The company news service from the London Stock Exchange
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