Highlights
Continuing track record of growth driven by strong operational performance - key markets remain positive
o 8% growth in underlying revenue, 8% organic growth at constant exchange rates
o 4% growth in underlying operating profit, 6% organic growth at constant exchange rates
o 10% growth in underlying profit before tax
Clear visibility of future revenue growth
o 78% of revenue in place for full year 2016/17; 53% in place for full year 2017/18
o £20 billion order book provides predictability of future revenues
o Refreshed £10.5 billion pipeline of opportunities underpins confidence in continued growth
o Continued contract win rates of over 40% for new bids and over 90% for rebids
Ongoing focus on financial discipline and cash performance
o Cash conversion pre capital expenditure 114%; post capital expenditure 83% (2015: 113%; 83%)
o Net debt reduced to £1,228.5 million (2015: £1,325.6 million); net debt to EBITDA ratio of 2x
Continued delivery of shareholder value
o 8% increase in underlying eps to 74.2p
o 9% increase in full year dividend
Peter Rogers, Chief Executive said:
"Babcock had another successful year in 2016, continuing to create value for shareholders. We delivered a strong performance in underlying revenue, operating profit and earnings per share, demonstrating the effectiveness of our strategy and the quality of our operations.
"We end the year well positioned for future growth in our key markets both in the UK and internationally, where we have had some early successes in securing new opportunities through leveraging the platform provided by the Avincis acquisition. Our confidence is underpinned by the clear visibility provided by our impressive order book and bidding pipeline. As a result, we expect to make further progress this year and beyond.
"Finally, I'm delighted that the Board has chosen Archie Bethel to succeed me on my retirement in September. Archie has played a vital part in our success to date, and his skills, expertise and deep understanding of our complex and critical business make him the ideal person to drive our future growth."
