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Trading statements

Babcock in line with forecasts

13 July 2017 08:29

Babcock's new financial year has started well and trading is line with forecasts, shareholders at today's annual meeting will be told.

An update ahead of the meeting said that expectations and the outlook for the year were unchanged.

It said: "Since the full year results announcement on 24 May 2017, visibility has continued to improve, with around 82% of revenue now in place for 2017/18 and 55% for 2018/19.

"The order book and bid pipeline of opportunities have remained stable at around £19.0 billion and £10.5 billion respectively following contract wins, and the tracking pipeline remains buoyant, providing confidence in our ability to grow in line with our expectations this year and over the medium term."

On the operational review, the update said: "The group has continued to make progress over the last seven weeks, with work proceeding as expected on our long-term contracts.

"Awards since the start of the financial year include a new contract, worth up to £500 million, to operate a fleet of specialist fixed-wing aircraft for the Norwegian Health Service from summer 2019.

"We were also formally awarded and have begun mobilisation to deliver all four elements of a MOD programme to become the Marine Systems Support Partner and Systems Technical Authority for the Royal Navy's new Queen Elizabeth Class Aircraft Carriers and Type 45 Destroyers, expected to be worth in excess of £360 million over seven years.

"Our joint venture with the Oman Drydock Company has formally begun with the provision of support to vessels including US Navy ships.

"Other contracts awarded since the start of the financial year include further work on the nuclear submarine decommissioning demonstrator project and the renewal of a number of Emergency Services aviation contracts, including two Helicopter Emergency Medical Services contracts in Queensland, Australia.

"We have renewed two apprentice training contracts in the UK, and our Marine business has expanded its in-service support footprint in Canada."

At 8:29am: (LON:BAB) Babcock International Group PLC share price was +8p at 877.5p

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