Babcock pre-tax profit storms ahead, boosted by acquisitions, contract wins

18th May 2015 07:31

Babcock posted a 47% rise in pre-tax profit for the year ended March 31st 2015 on Monday, to £313.1m from £218.8m, with revenue up 37% on the year at £4.5bn.The company said that revenue growth came both organically, through major contract wins and by expanding and enhancing existing contracts, as well as from acquisitions made in the past year. Operating profit growth has been driven both organically and through acquisitions, it said.Babcock also reported a 10.3% increase in the full-year dividend to 23.6p from 21.4p, reflecting the improved financial performance."Babcock performed strongly last year, both organically and through acquisitions," said chief executive Peter Rogers. "We achieved double digit organic growth in revenue and operating profit driven by major contract wins and by expanding the size and scope of existing contracts. Growth from Marine and Technology and Support Services has been particularly compelling."He added: "Our recent acquisitions have continued to perform in line with our expectations and have created an excellent platform for future growth." The company remains confident about its long-term prospects and said it expects to make further good progress in the current financial year.Babcock's order book increased from around £11.5bn at the end of March last year to around £20bn this year. "Throughout the year it steadily increased as we reached final signature on a number of major contract wins, including contracts for Magnox civil nuclear decommissioning, London Fire Brigade vehicle support, Defence Support Group military vehicle support and the Maritime Support Delivery Framework," the company said.