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Babcock profits jump after VT group deal

DEFENCE company Babcock has reported a 21 per cent rise in pre-tax profit after agreeing to buy rival VT Group for £1.5bn.

Babcock’s profit was £129.2m in the year to the end of March while the company said it had a £8.3bn order book.

The firm said the strong performance of its marine division had helped to fuel the figures.

Chief executive Peter Rogers said: “We believe that our strong market positions and our track record of delivering efficiencies for our customers will be beneficial as pressure on public spending increases.

“The proposed acquisition of VT Group, further strengthens our scale and capabilities in our core markets.”

Babcock raised its full-year dividend 22 per cent to 17.6 pence per share from 14.4 pence.