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Babcock International Group PLC shares rose on Thursday, as the FTSE 250 constituent upped its guidance for the financial year due to end on March 31.
The London-based provider of technical and engineering support services to the defence and civil sectors was up 10% at 596.80 pence in London on Thursday morning.
Babcock said it now expects £4.9 billion in revenue for the year, which would be a 12% rise from £4.39 billion in financial 2024. It also sits ahead of the Vuma-compiled average analyst forecast of £4.67 billion for the company.
This was due to double-digit organic growth in its Nuclear division, driven by new build and de-comissioning work in the civil nuclear sector and increased submarine support activity, as well as ‘strong’ growth within its Marine arm. where it saw larger LGE volumes and a ramp-up of its Skynet programme.
Babcock also cited a Vuma market consensus of £333.5 million in underlying operating profit for the year, which would be up 34% from the £237.8 million reported last year.
Business in January was ‘also encouraging’, Babcock said.
Chief Executive David Lockwood said: ‘Today’s announcement demonstrates that successful execution of our strategy is continuing to deliver value for all our stakeholders. Our engineering skills and know-how are in ever greater demand and with significant opportunities before us, I look forward to further profitable growth.’
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