Babcock has issued a trading update for the period the 1st of October 2016 to date, highlighting the impact of Trident and other contracts to their financial outlook.
Babcock say, in addition to continuing to progress existing contracts, new order intake remained strong, maintaining our order book and pipeline at £30.8 billion.
New orders received included:
A new €500 million contract for the provision and maintenance of training platforms and related service for the French Air Force (FOMEDEC).
The manufacture of 22 missile launch tube assemblies for the joint US-UK Trident nuclear submarine replacement programme. This is the first production batch of a 300 missile launch tube assembly programme.
A new helicopter emergency medical service for France’s South West region.
An extension of our pile fuel cladding silo nuclear decommissioning project work at Sellafield.
A project to design an Offshore Patrol Vessel for the US Coast Guard.
A project to design and provide processing equipment for an LNG Fuel Gas Supply Vessel which will operate in the Baltic.
The addition of Army vehicle support at Leconfield to the existing Defence Support Group contract.
Further design and development work on the Trident nuclear submarine replacement programme’s weapons handling and discharge systems.
A further six maritime equipment support contracts for the Royal Navy, including pumps, motors and electricals.
Archie Bethel, Chief Executive, said:
“Babcock continues to perform; delivering growth in revenue, profit and earnings, and maintaining healthy levels of cash generation and conversion. The long-term visibility provided by our £20 billion order book and substantial pipeline of opportunities underpins our future growth.
Our UK markets remain positive, with the Group well positioned for the significant future outsourcing opportunities expected from both our defence and civil customers, and we see growing international demand for our specialist and complex engineering support services.”
