Engineer targeting opportunities stemming from demand for increasing efficiency in defence, nuclear and rail
Engineer Babcock has reported a 16% rise in pre-tax profit on revenue of 拢3.2bn in its tenth consecutive year of growth.
In its results for the year to 31 March 2013 the firm reported revenue of 拢3.2bn, up 6% from 拢3.1bn last year.
It also reported its bid pipeline now stood at 拢15.5bn, up from 拢9.5bn in 2012.
Peter Rogers, chief executive of Babcock, hailed it as a 鈥渟trong year鈥� for the firm.
He said: 鈥淭he very substantial expansion of our bid pipeline reflects the continued buoyancy of our markets - public and private sector, civil and defence, UK and overseas - as customers seek trusted suppliers to maintain or enhance service quality at lower cost.
鈥淲ith our strong order book and financial base, we are well positioned for further strong progress this year.鈥�
Babcock鈥檚 support services arm, which contains its operations in the nuclear and rail markets, reported revenue of 拢848m, up from 拢750m the previous year.
However, its operating margin fell to 9% from 10.6% the year before.
The firm said the current economic climate in the UK was both a challenge and an opportunity for the firm.
During the year the firm was appointed to oversee the decommissioning of Dounreay nuclear site.
In October 2012 Babcock signed a memorandum of understanding with Hitachi to support it in the development of its new nuclear power stations at Wylfa and Oldbury following its acquisition of Horizon Nuclear Power.
But Babcock鈥檚 defence arm saw revenue fall 3% to 拢709m, from 拢734m the previous year.
Though this was mainly due a reduction in training work which it does for the Ministry of Defence and completion of a number of equipment construction contracts in the previous year.
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