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(Sharecast News) - Aerospace and defence firm Babcock said on Wednesday that it had delivered "strong" underlying operating profits in the year ended 31 March, driven by the continuation of "positive trends" seen in Q3.
Babcock expects to report revenues of 4.83bn, driven by organic growth of 11% at constant currency, with notably strong growth in its nuclear and marine divisions.
Underlying operating profits were up 17% year-on-year at 363.0m, with underlying operating margins improving from 7.0% to 7.5% as all four sectors performed well in Q4.
The FTSE 250-listed group also stated underlying operating cash conversion was roughly 80%, boosted by working capital timing, and said underlying free cash flow came to 153.0m, despite an additional accelerated pension deficit repair contribution of 40.0m.
Chief executive David Lockwood said: "In an uncertain world, we continue to see momentum across the business. This has driven strong performance in all four of our divisions in the fourth quarter, resulting in full-year underlying operating profit ahead of expectations. Our experience, know-how and application of technology play a critical role in ensuring that our customers are ready to respond to ever-changing global threats."
As of 0850 BST, Babcock shares were up 2.20% at 765.0p.
Reporting by Iain Gilbert at Sharecast.com
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