Shares of Babcock International Group Plc (BAB.L) rose about 7 percent Tuesday morning, after the UK-based engineering support services firm reported a higher full-year profit, benefited by major contract wins in the final quarter of 2011/12.
Looking ahead, the company said it is well positioned for further strong progress this year, backed by its strong order book and bid pipeline. Order book remained stable at about 12 billion pounds, and bid pipeline currently stands at 15.5 billion pounds, compared to 9.5 billion pounds in the prior year.
At the start of 2013/14 financial year, the company has nearly 70 percent of its anticipated revenue already contracted and over 35 percent for fiscal year 2015.
For fiscal year ended March 31, 2013, Babcock posted profit before tax of 224.6 million pounds, higher than 173.0 million pounds in the prior year. On an underlying basis, pre-tax profit increased to 317.8 million pounds from 274.1 million pounds reported last year.
On a per share basis, earnings rose to 48.2 pence from 28 pence per share a year earlier. Earnings from continuing operations were 52.4 pence per share, up from 42.8 pence per share in the preceding year.
Group revenue, less, joint ventures and associates revenue, grew to 3.03 billion pounds from 2.85 billion pounds last year. Total revenue was 3.24 billion pounds, up 6 percent compared to 3.07 billion pounds last year. Adjusted for movements in foreign exchange and acquisitions, the growth was 7 percent.
Peter Rogers, chief executive 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 board has recommended a final dividend of 20 pence per share, to shareholders of record on July 5, 2013, payable on August 8. This will give a total dividend for the year of 26.3 pence per share, an increase of 16 percent from last year.
BAB.L is currently trading at 1,157 pence, up 68 pence or 6.24 percent, on a volume of 803,302 shares.
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