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Babcock Intl Slips To Loss In FY20; Warns On Sector Margins Next Year

Aerospace and defence company Babcock International Group Plc. (BAB.L) reported Thursday that its fiscal 2020 loss before tax was 178.2 million pounds, compared to last year's profit of 235.2 million pounds.

Loss per share was 38.6 pence, compared to profit of 39.5 pence a year ago.

Underlying profit before tax was 428.4 million pounds, compared to 517.9 million pounds in the prior year. Underlying basic earnings per share were 69.1 pence, compared to 84.0 pence last year.

Revenue for the year edged down to 4.45 billion pounds from last year's 4.48 billion pounds.Underlying revenue was 4.87 billion pounds from 5.16 billion pounds in the prior year.

The company recorded strong performances across Marine, Nuclear and Land sectors, while it was weak in Aviation.

The company noted that majority of its work has been declared to be critical and its people designated as key workers amid the Covid-19 pandemic.

Further, Babcock said its Board has deferred the decision on final dividend until COVID-19 situation becomes clearer.

Combined order book and pipeline was around 35 billion pounds, higher than last year's 31 billion pounds. Order book is 17.6 billion pounds and pipeline is 17 billion pounds.

Looking ahead for the year ending March 31, 2021, the company said it is not providing financial guidance due to the current level of uncertainty.

The company said sector margins will be impacted by lower demand and productivity levels.

Performance is expected to be weighted to the second half, reflecting normal business phasing and the expected impact of COVID-19.

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