Babcock kicks off new year confidently as order book grows 17% in Q1

21st Jul 2014 09:33

Engineering group Babcock gave a confident outlook on Monday after a solid start to the new financial year with its order book rising 17% in the first quarter.The group, which works in the defence, energy, transport and telecoms sectors, said that its order book has grown to £13.5bn since the start of April, up from £11.5bn at the end of the fourth quarter.The 2014/2015 year has "started well", Babcock said, with activity levels remaining high and in line with expectations."Our key markets remain positive and continue to offer significant medium and long-term growth opportunities," it said.The £1.6bn purchase of helicopter transport business Avincis, completed in May, has also helped as it continues to experience high levels of order intake. Integration activities are said to be progress well.Babcock's bid pipeline currently stands at £16bn, with Avincis accounting for £1bn. The company said it has £3bn of contracts at the preferred bidder stage within the pipeline which should transfer to the order book during the first half."Our markets, in both the UK and overseas, remain positive as customers seek financial and operational efficiencies and improvements," the company said.BC