Babcock International profits soar as acquisitions yield benefits

BRITISH defence services group Babcock International reported a 46 per cent rise in first-half profit yesterday, and said it expected to win significant contracts in coming months as military and engineering clients outsource activities to cut costs.

Babcock, which maintains Royal Navy submarines, posted a pretax profit of £132.8m for the six months to the end of September, in line with an average forecast of £133.8m according to a poll of analysts, on sales up 30 per cent at £1.58bn.

Babcock said its 2010 acquisition of VT Group continued to generate significant operational and financial benefits. It said its order book was flat at £12bn but its bid pipeline had doubled in the last year.