REG - Babcock Intnl Group - AGM trading update

Babcock InternationalAnnouncement

28/09/2023 07:00

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RNS Number : 9065N  Babcock International Group PLC  28 September 2023

28 September 2023

 

Babcock International Group PLC

 

AGM trading update - strong start to the year, full year expectations
unchanged

 

Babcock International Group PLC ("Babcock" or "the Group") provides a trading
update for the first five months of the financial year ahead of its Annual
General Meeting to be held at 10.30 am today.

Trading has been encouraging since the start of the financial year, with good
organic revenue growth, improved operational performance and higher cash flow
compared to the same period in the previous year.

Overall, including the impact of contract phasing in Marine and further growth
in Nuclear infrastructure programmes, organic revenue growth is offsetting the
impact of disposals in the prior year.

Underlying operating profit increased year-on-year, driven by revenue growth
and continued operational improvement driving underlying operating margin
expansion. Operating profit also benefitted from the earlier than anticipated
receipt of initial licence fees associated with the Polish MIECZNIK frigate
programme. Underlying operating cash flow in the period was higher than
expected, largely due to contract phasing.

Outlook

New programme wins, contract renewals and progress on the Group's opportunity
pipeline remain strong, supporting the Board's unchanged expectations for
another year of organic revenue growth, further underlying margin expansion,
improved free cash flow and progress towards the Group's medium-term guidance.

 

For further information:

 

Andrew Gollan, Babcock Director of Investor
Relations               +44 (0)7936 039 004

Kate Hill, Babcock Group Director of
Communications                +44 (0)20 7355 5312

Olivia Peters / Harry Cameron, Teneo
                        +44 (0)20 7353 4200

 

 

 

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