Babcock International Group plc (BAB.L), on Friday, issued trading update for the first ten months of the financial year ending 31 March 2022, and said overall group trading for the period was in line with expectations.
The company noted that its new operating model is on track to deliver savings of about £20 million in this financial year. Meanwhile for fiscal 2022, the company continues to expect free cash flow to be significantly negative, reflecting material cash outflows including additional pension contributions, restructuring costs, and investments in facilities and IT upgrades.
Further, the company said it continues to "make progress on strategic priorities, including portfolio alignment." Babcock completed the sales of its UK Power business in December for gross proceeds of £50 million, and its 15.4% stake in AirTanker Holdings Ltd. in February for £95 million.
Earlier this month, the company entered into a Sales and Purchase Agreement to acquire the remaining 50% interest in our Australian Naval Ship Management joint venture for around £32 million.
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