Babcock International Final Results 2011/12 - dividend boosted

Babcock International Group PLC full year results for the year ended 31 March 2012

Excellent financial results with positive outlook supported by continued growth in order book and bid pipeline

Financial Highlights

^† Continuing operations - Following the announcement of the disposal of VT Services Inc, their results are reported as discontinued and the comparative restated

*Underlying revenue includes the Group's share of joint ventures and associates revenues.  **Underlying operating profit includes IFRIC 12 investment income and joint ventures and associates operating profit but is before amortisation of acquired intangibles and exceptional items. ***Underlying profit before tax is inclusive of pre-tax joint ventures and associates income but before amortisation of acquired intangibles and exceptional items.  ****Underlying basic earnings per share is before amortisation of acquired intangibles and exceptional items, before the related tax effects and before the effect of UK tax rate changes.

Operational Highlights

• Business model and strategy driving underlying revenue and profit growth
• 5.6% organic growth in underlying continuing revenue
• 15% organic growth in underlying continuing operating profit
• continuing underlying operating margin increased to 10.7% (2011: 10.2%)
• Agreement reached on sale of VT US defence business for $98.75 million (£61 million)
• Order book for continuing operations increased to £13 billion (2011: £12 billion) supporting positive outlook
• Positive market environment continues to create opportunities
• bid pipeline for continuing operations increased to £9.5 billion (2011: £7.0 billion)
• Cash conversion of 111%, net debt reduced to £641.1 million; net debt:ebitda 1.8 x
• Well positioned for further growth both in the UK and overseas

Peter Rogers, Chief Executive commented

"Babcock delivered record results last year. From our position as the UK's leading engineering support services group, we grew in all three of our target areas - existing contracts, existing customers and new customers.  We increased our double-digit operating margin while achieving good organic top-line growth and further improving our strong financial position. As a result of these successes and our confidence in the future, we have maintained our record of increasing returns to our shareholders.

"Our key markets remain strong and the current economic climate is favourable to the further growth of our business. We have excellent forward visibility with our long-term contracts, strong order book and bid pipeline. Therefore, the Board expects the Group to make further strong progress in 2012/13 and for earnings to be ahead of its previous expectations."