Babcock reports strong Q3, confident for full-year

11th Feb 2014 07:08

- Third quarter trading momentum continues- High activity levels as economic climate picks up- Confident of further strong progress this yearBabcock International said it continues to experience positive market conditions across its business units in the UK and overseas and is confident of further strong progress this year, in line with its expectations.The engineering support services company said third quarter trading saw high activity levels in all divisions, helped by the improving economic climate.Babcock's order book currently stands at around £11.5bn. During the third quarter, the group won, extended, or has been announced as preferred bidder on contracts totalling £700m. Since the end of the first half, the bid pipeline has increased to £18.5bn, it said, and is expected to be the key driver of organic growth over the next few years. As well as Defence Support, new opportunities for the Marine and Technology and Support Services divisions totalling around £500m continue to be the main driver to the increase in the bid pipeline.It added that activity levels are high in all divisions and, despite the continued weakness of the South African Rand, its financial performance is in line with company targets as set out at its half-year results in November."The general economic climate continues to drive both public and private sector customers to consider new or additional outsourcing of essential support activities as a way of delivering increased financial and operational efficiency."The strength of the order book and bid pipeline continues to provide excellent visibility of future revenue streams," Babcock said in its trading update.The group said its financial position remains robust and for the full-year, net acquisition spend, after disposals, will total over £60m.CJ