Babcock International have seen good growth for the first half of 2012, improved order book and bid pipeline. Confidence in continued growth has resulted in an increased interim 2012 dividend by 10.5% to 6.3p per share.
Strong underlying organic growth in revenue and profit
- 7.3% organic growth in underlying revenue (excluding the effect of foreign exchange movements)
- 13.3 % organic growth in underlying operating profit (excluding the effect of foreign exchange movements)
- Order book 12.5 billion (2011: 12 billion) providing excellent visibility of future revenue streams
- Bid pipeline increased to over 13 billion during first half (15 May 2012: 9.5 billion)
- New outsourcing opportunities in bid support long-term growth prospects
- Cash conversion of 113%, net debt reduced to 581.1million
- Strong first half performance and confidence in growth prospects reflected in 10.5% increase in half year dividend to 6.30p per share
Peter Rogers, Chief Executive commented
"Babcock's strong first half performance reflects our leadership in UK engineering support services, the continuing growth in our major markets and our increasing international presence. We achieved double-digit growth in underlying profit and earnings and we further strengthened our balance sheet by sustaining our track record of excellent cash conversion. As a result, we have once again been able to increase returns to our shareholders. The strength of our order book and bid pipeline underpin our confidence in the future."