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BAB - Babcock International News Story

284.2p -12.8  -4.3%

Last Trade - 13/08/20

Mid Cap
Market Cap £1.44bn
Enterprise Value £3.22bn
Revenue £4.45bn
Position in Universe 332nd / 1816

UPDATE 1-UK engineering firm Babcock defers dividend decision due to COVID-19

Thu 11th June, 2020 11:54am
(Adds shares)
    LONDON, June 11 (Reuters) - British engineering company
Babcock  BAB.L  deferred a decision on its final dividend and
did not give financial guidance for the year ahead due to
COVID-19 uncertainty. 
    Babcock, whose biggest customer is Britain's Ministry of
Defence, also took exceptional items of 503 million pounds 
($638 million) including a writedown of the value of its oil and
gas aviation business which transports workers to rigs. 
    For the 12 months to March 31, it posted an underlying
operating profit of 524 million pounds ($664.5 million), 11%
lower than last year, but sunk to a statutory loss of 165
million pounds when factoring in the charges. 
    Babcock said that it was deferring the decision on its final
dividend until the COVID-19 situation becomes clearer and was
not providing financial guidance for its new financial year for
the same reason.  
    "We enter the new financial year facing uncertain times but
the long term characteristics of our business remain strong,"
Chief Executive Archie Bethel said. 
    It said it had a combined order book and pipeline of around
35 billion pounds, and had been boosted by contract wins for a
Type 31 frigate programme and submarine programmes.
    Shares in the company fell in early trading but were down 2%
by 1045 GMT. They are down 33% in the last six months. 
    Bethel has announced he will step down but will remain in
place until a successor is found. 
($1 = 0.7885 pounds)

 (Reporting by Sarah Young and Kate Holton; editing by Emelia
 ((; +44 20 7542 1109; Reuters
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