Babcock set for year of excellent progress

2nd Feb 2010 07:27

Engineering support services group Babcock remains on track for ‘another year of excellent progress’.The group is enthused by the long term growth prospects of its main markets, and sees significant growth opportunities available in the UK and overseas.The order book is solid at around £6bn and cash generation since the beginning of October has remained healthy, allowing the company to carry on paying down debt.The Marine division performed strongly across the board in the final quarter with ‘excellent margin performance’.All key contracts in the Defence division are performing well and in line with internal financial and performance targets.The situation for the Nuclear division is more downbeat, with the civil decommissioning market remaining subdued, but the power generation support market has remained strong.The Rail division is benefiting from the restructuring moves the company has instigated and, aside from the £4m or so restructuring costs the division has incurred, is operating profitably.In Networks, the group’s framework contracts with National Grid and EDF continue to perform well but the Telecommunications division is encountering generally quiet markets.Global economic conditions continue to affect the Engineering and Plant division.