Babcock reiterated its expectations for the financial year after a half where its zenith was winning a £1.25bn contract to build new warships for the navy.
The firm’s marine sector performed well, Babcock said, as its warship support business revved up. Meanwhile the order book filled up in its technology business.
It comes after the company won a £1.25bn contract to help the Ministry of Defence build five new Frigate. Work will start on the ships at Rosyth in Scotland, as soon as the contract has been confirmed later this year, management said this morning.
Robin Speakman, an analyst at Shore Capital Markets, said that the outsourcer had performed “as expected”.
The firm also completed a refinancing as planned, renewing a £775m five-year revolving credit facility and selling around £500m in eight-year bonds.
However Babcock’s civil nuclear market was still challenging, the company said. It started to take a hit after losing a nuclear decommissioning contract in 2017, which it still held until last month.
Read more: Serco tried to merge with struggling Babcock
In its aviation business, Babcock started operating in Canada and Norway.
“While we have seen some delays in the award of new contracts in Aviation, overall bidding activity across the sector has increased,” the company said.