Babcock bullish as revenues rise

17th May 2011 08:58

Engineering support services group Babcock International hailed the ability of outsourced service providers to benefit from the government's cost-cutting efforts as it posted a sharp rise in revenues. In the year to 31 March, revenue was up by 50% from the previous year at £2.89bn, while pre-tax profits fell 11% to £115.4m. Babcock, whose activities include helping to manage railway infrastructure and operating power transmission lines, upped its full-year dividend by 10% to 19.4p.The sharp rise in revenues was due to the acquisition of rival outsourced service provider VT Group. Underlying organic revenue and operating profits were up by 5%, the company said."These strong results reflect the value Babcock is now generating as the UK's leading engineering support services group," said chief executive Peter Rogers. "The successful integration of VT Group into our existing business has created a powerful operational and financial platform for us to capitalise on our increasing opportunities for growth both in the UK and internationally."Babcock said that "in the current economic climate, where many of our customers are operating under tight financial constraints, we are better placed to help them achieve the financial and operational efficiencies they require."