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07 Feb, 2024 08:36 07 Feb, 2024 08:36

Babcock on track to hit targets after strong start to year

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Babcock International GroupSharecast graphic / Josh White

Defence engineering group Babcock has said that it is trading in line with expectations, as it meets with institutional investors and analysts for a capital markets day.

Interim results released in November indicated "a strong start to the year", Babcock said, and the outlook currently remains the same.

"The board's expectations for another year of organic revenue growth, underlying operating margin expansion and positive cash flow generation are unchanged, and we continue to build momentum to achieve the medium-term guidance," the company said in a brief trading statement on Wednesday.

Babcock had said at the time of its last annual report in July that it expects to reinstate a dividend in the current financial year.

Through its medium-term guidance, covering the next three-to-five years, the company is guiding to an underlying operating margin of at least 8%, up from 6.3% in the most recent financial year, as well as average annual revenue growth in the mid-single digits and underlying operating cash conversion of at least 80%.

Babcock shares were down 0.3% at 464.4p by 0835 GMT.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.