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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Babcock International - New 92.9p eps forecast for 2015

July 2014

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.

Results for outsourcing group Babcock cap an eventful period, which has seen it conclude its substantial £1.6bn acquisition of helicopter services group Avincis and be named preferred bidder for the huge Magnox and smaller London Fire Brigade and Network Rail contracts. Revenues, pretax profit and eps rose 9%, 15% and 13% respectively to £3.5bn, £316.1m and 70.3p while net debt rose from £500m to £533m. The order book was unchanged at £11.5bn but that doesn’t include those three new contracts. In marine & technology, which manages naval dockyards, designs submarine weapons handling and launch systems and supplies equipment and spare parts to the MoD, operating profit rose 13% to almost £154m, driven by increased volum ...

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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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