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Babcock International - 78% of revenues secured for FY'17

August 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • BAB
  • Price:
  • 910p
Babcock showed just why Goldman Sachs rates it as one of the best plays in business support with full year results stating it has 78% and 53% revenues booked for FY’17 and FY’18 respectively thanks to its £20bn order book (backed by long term framework contracts). Results showed revenues rising 8% to £4.8bn and pretax profit increasing 10% to £460m. Eps increased 8% to 74.2p. Free cash flow was well ahead of expectations at £490m (Jefferies: £467m) and net borrowings fell 7% to £1.2bn giving net debt / EBITDA of 2.0x (FY’15: 2.2x).Marine & technology (weapons handling, launch systems, building the two new aircraft carriers) grew profits 14% to £199m, boosted by ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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