LONDON -- Babcock International Group (BAB -0.77%) -- the U.K.'s leading engineering support services company, with clients in the defense, energy, telecommunications, transport, and education sectors -- is currently up 4% following the publication of its full-year results for the year ending March 31, 2013.
The company reported a 6% growth in revenue, to just over £3 billion, with 14% growth in operating profit, up to £234.5 million from last year's £202 million.
Babcock's order book currently stands at £12 billion, which, while down on last year's £13 billion, the company says still provides excellent visibility of future revenue. Babcock says that it's starting the 2013-2014 financial year with almost 70% of anticipated revenue for the year already contracted and more than 35% for 2014-2015 financial year. Furthermore, it has a bit pipeline of some £15.5 billion, which is over 60% up on last year's £9.5 billion.
Underlying earnings per share were up 16%, and the board has recommended a final dividend of 20 pence per share, bringing the total dividend for the year to 26.3 pence per share, also an increase of 16% on last year. This, the boards says, reflects the strength of its confidence in the long-term future of Babcock's business
Commenting on the results, chief executive Peter Rogers said:
Babcock performed strongly last year, driven by our clear leadership in the growing markets for engineering support services. We generated good growth in underlying revenue and further improved our operational performance to deliver increases in operating margin, underlying earnings and shareholder value.
The very substantial expansion of our bid pipeline reflects the continued buoyancy of our markets-public and private sector, civil and defense, U.K. and overseas-as customers seek trusted suppliers to maintain or enhance service quality at lower cost. With our strong order book and financial base, we are well positioned for further strong progress this year.
What the company describes as "excellent financial results" are certainly reflected in Babcock's share price, which has increased by 36% over the past year.
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