Babcock on track thanks to buoyant bidding activity

ENGINEER Babcock this morning said it was eyeing “significant” new outsourcing activities, as market conditions across its businesses remained positive.

In a trading statement, the blue chip engineer said bidding activity remained high through the year thanks to a several investment programmes in its civil and military markets.

The order book is stable at around £12bn, Babcock said, with £1bn worth on contracts won since the half year results in November. Last week, it was named preferred bidder on £440m worth of contracts at Heathrow.

Babcock added that it was on track to hit its full-year targets, and its results would show “strong progress” on the previous year.

“The scale of our order book continues to provide excellent visibility of future revenue streams across the group,” Babcock said in the update.

“This position is further strengthened by the medium to long-term growth opportunities which continue to flow into tracking and then into the bid pipeline.”