LONDON -- Babcock International Group (LSE: BAB ) this morning released a pre-close trading update, which confirmed that its full-year financial results are in line with previous expectations.
The U.K.'s leading engineering support services company went on to comment on the "strong progress" shown on the previous year, amid positive market conditions, with the bid pipeline increasing from £14 billion to £15.5 billion in the last two months -- the most significant addition to the pipeline is the Logistics and Commodities Services Transformation contract, being bid by the Defense and Security division in a joint venture with DHL.
At around £12 billion, management highlighted the order book's contribution to "provide excellent visibility of future revenue streams across the Group". Bidding activity remained high throughout the year, while a number of significant transformation and investment programs are being progressed through its civil and military markets.
Since the first-half results were released in November 2012, Babcock has won or are preferred bidders on contracts valued over £1 billion, including preferred bidder announcements on contracts for ground fleet maintenance for British Airways and baggage handling systems operations and maintenance for Heathrow Airport (£440 million); preferred bidder for the design, supply and delivery of two boat sets of weapon handling and launch equipment for an international customer (£100 million); and design and engineering support and equipment procurement contracts, in the U.K. and internationally, for the Marine and Technology division (£50 million).
Management reiterated their confidence of moving the company forward, stating that it remains "well positioned to help our customers develop cost efficient support solutions and we believe the current economic climate will continue to create significant medium and long-term growth opportunities for the Group, both in the U.K. and overseas".
The shares saw little change as the pre-trading update was released this morning. Babcock was one of 2012's best performers, and if you're looking for companies that have strong potential to soar in price, then we've pinpointed our favorite growth share from the FTSE 100. Our analysts have produced a free report in which they evaluate its finances and risks, and its growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- it's completely free.