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19 Sep 2024 07:00
19 September 2024
Babcock International Group PLC
AGM trading update - encouraging start to the year, FY expectations unchanged
Babcock International Group PLC ("Babcock" or "the Group") provides a trading update for the first five months of the financial year ahead of its Annual General Meeting to be held at 10.30 am today.
Trading update
Trading for the five-month period to 31 August 2024 has been encouraging and in line with the Board's expectations.
Positive momentum has continued into H1, and the Group has delivered good organic revenue growth, particularly in civil and naval Nuclear, and in the Land Sector. Group underlying operating profit also increased compared to the same period last year, despite last year including the license fees from the Polish MIECZNIK programme.
Our expectations for the full year are unchanged and we continue to progress toward our medium-term guidance.
Business developments
Demand in our core defence market remains positive and we continue to make good strategic progress. We have:
· | Launched H&B Defence, a joint venture with HII (NYSE: HII) to accelerate the development of critical sovereign capability for Australia's AUKUS nuclear-powered submarine programme, including workforce, nuclear infrastructure design and build, submarine defueling and decommissioning, nuclear waste and future sustainment. |
· | Reopened 9 Dock in Devonport on 12 September, following the completion of an extensive regeneration project. The dry dock will deliver the £560 million maintenance programme to extend the operational life of HMS Victorious, currently underway, and is critical for the future support of the UK's Continuous At Sea Deterrent. |
· | Inaugurated the Babcock Engineering & Nuclear Skills building at City College Plymouth. Opened by the Minister of State for Defence Procurement and Industry, the new facility will enhance our growing workforce's capabilities in the UK's nuclear programmes. |
· | Signed a contract extension with PGZ SA, the Polish Armaments Group, to continue our support to Poland's Miecznik frigate programme until the delivery of ship three in 2031. |
The Group's HY25 results will be published on 13 November 2024.
For further information:
Andrew Gollan, Babcock Director of Investor Relations | +44 (0)7936 039 004 |
Kate Hill, Babcock Group Head of Financial Communications | +44 (0)20 7355 5312 |
Olivia Peters / Harry Cameron, Teneo | +44 (0)20 7353 4200 |
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