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22 Nov 2016

Half Year Results

Babcock is pleased to announce the Half Year Results for the first six months ended 30 September 2016:

  • Solid delivery
    • 7% growth in underlying and organic operating profit at constant exchange rates
    • 6% growth in underlying revenue; 4% organic growth at constant exchange rates
    • 7% growth in underlying profit before tax
    • Stable margins
  • Strong revenue visibility    
    • 93% of revenue for full year 2016/17 in place
    • 63% of revenue for full year 2017/18 already under contract
    • £20 billion order book, reflecting £2 billion intake during the period
      • Maintained win rate of over 40% on new bids and over 90% on rebids        
  • Continuing demand for our services
    • Increased £10.8 billion bid pipeline of opportunities where formal process underway
    • £3 billion of new entries into bid pipeline
    • Strong tracking pipeline of future opportunities underpins long-term growth
  • Ongoing focus on financial discipline and cash performance
    • Free cash flow up 8%
    • Pre-capital expenditure cash conversion of 108
    • Net debt of £1,291 million; net debt to EBITDA ratio of 2.0x
  • Generating shareholder value
    • 8% increase in underlying EPS to 37.2 pence
    • 7% increase in interim dividend to 6.50 pence

Chief Executive Archie Bethel said:

“Babcock continues to perform; delivering growth in revenue, profit and earnings, and maintaining healthy levels of cash generation and conversion.  The long-term visibility provided by our £20 billion order book and substantial pipeline of opportunities underpins our future growth. Our UK markets remain positive, with the Group well positioned for the significant future outsourcing opportunities expected from both our defence and civil customers, and we see growing international demand for our specialist and complex engineering support services. Despite slightly slower organic growth, the Board expects the full-year results to be in line with its expectations. We therefore remain confident of making good progress both this year and beyond.”

To view the statement, presentation or webcast please click here.