Engineering giant Babcock reports 43% rise in pre-tax profit with revenue up 20% to 拢4bn
Global engineering giant Babcock has posted a 43% jump in pre-tax profit to 拢313m for the year to 31 March 2015, with revenue up 20% to 拢4bn, up from 拢3.3bn.
Babcock said its support services division was behind much of its revenue growth, with its subsidiary Cavendish Nuclear reporting a 23% increase in revenue.
The rise, the group said, was mostly as a result of Cavendish Nuclear winning the 拢4.2bn, 14-year Magnox civil nuclear decommissioning contract in September 2014.
Babcock鈥檚 marine and technology division also achieved strong growth, with both operating profit and revenue up 13%, while its defence security division posted a 9% increase in operating profit, despite revenue dropping 4%.
Babcock also increased its order book to 拢20bn, up from 拢11.5bn the previous year.
However, the group鈥檚 results were hit by movements in currency. The ongoing weakness of the Rand saw operating profit for Babcock鈥檚 South Africa business fall from 15% in local currency to just 3% when converted into sterling. The strength against the euro also had an impact on the group鈥檚 European businesses.
Babcock鈥檚 acquired company Avincis (renamed Mission Critical Services) posted a 22% increase in revenue, in line with expectations at the time of acquisition.
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