23 May 2018
Full year results for the year ended 31 March 2018
You can view the full statement and webcast here.
• 2.8% growth in underlying revenue (2.8% organic growth at constant currency)
• 1.7% growth in underlying operating profit (1.6% organic growth at constant currency)
• 3.6% growth in underlying profit before tax
• £31 billion order book and bid pipeline
• 76% of underlying revenue in place for 2018/19; 50% for 2019/20
• Cash conversion of 106% pre capital expenditure, 82% post capital expenditure; 116% pre capital expenditure, 92% post capital expenditure excluding one-year impact of FOMEDEC contract
• Net debt down 5% to £1,115.0 million; net debt to EBITDA ratio reduced from 1.8 to 1.6 times
• 3.6% increase in underlying basic earnings per share
• 4.8% increase in full year dividend
• First year of operating in realigned sector structure, Technology Group established
• International underlying revenues increased to 28% of Group total
• Aircraft carriers: HMS Queen Elizabeth delivered to the Royal Navy, HMS Prince of Wales named and undocked at Rosyth
• Successful delivery of Royal School of Military Engineering benchmarking programme
• Military flight training: UK training started at new school at RAF Cranwell; French FOMEDEC contract mobilisation on track
• Played crucial role in extinction of major fires across Southern Europe
• Formal agreement reached on Magnox; Sellafield PFCS under budget and ahead of schedule
• Completed IFRS 15 review confirmed no impact on results following adoption
Chief Executive Archie Bethel said:
“I am pleased to report another year of further progress on all fronts. Underlying revenue and profits increased to record levels with excellent cash generation, and we further strengthened the balance sheet by reducing our net debt while increasing our dividend for the seventeenth consecutive year. We ended the year with an order book and bid pipeline worth £31 billion, which supports our future growth prospects.
“We have always been a specialist engineering services company with a strong UK heritage but the changes we have made in the last couple of years are beginning to deliver meaningful benefits. Our new sector structure is making a real difference, we are increasingly focused on our core business areas of defence, emergency services and civil nuclear, and are on track to exceed our target of having 30% of the Group’s underlying revenue coming from international markets by 2022.
“We expect to make further progress this year and are confident about Babcock’s longer-term prospects which are underpinned by our technical expertise, unique infrastructure and a sustainable business model which is increasingly relevant to our key customers in non-cyclical and highly regulated markets”