Updates

Babcock

September 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In spite of another £90m charge against its troublesome Type 31 warship contract (5% group sales) results excluding this showed good progress with underlying operating profit (EBITA) increasing 17% to £311m. Eps were 30.8p. Excluding Type 31, margin was 7% and according to JP Morgan Cazenove “looks well on track to meet its target of at least 8% in the next few years.” Even after a £35m pensions injection it generated free cash flow of £160m and net debt (excluding leases) fell almost 40% to £211m (net debt / EBITDA: 0.8x). Amazingly, net debt is now down more than three quarters from the eye-watering £922m peak in FY’20, a herculean achievement by ex-Laird and Cobham CEO David Lockwood. Prospects look rosy with the contr ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Fonix Mobile

GB Group

Babcock - CMD highlights huge defence opportunities; terrific chart (April 2024)

Babcock International - Large reduction in net debt from £629m to £288m (February 2024)

Babcock - Shares above £4 as NATO lobbies members for more defence spend (November 2023)

Babcock (September 2023)

Babcock - Net debt £150m lower than expected (June 2023)

Babcock - Completed disposal program generates £570m to reduce debt (April 2023)

Babcock - Interim results beat expectations (January 2023)

Babcock - Net debt falling faster than expectations (September 2022)

Babcock - Defence firm with contracted orders covering 70% sales on PE of just 9.2 (April 2022)

Babcock International - 78% of revenues secured for FY'17 (August 2016)

Babcock International (July 2015)

Babcock International - Order book increased by Â£5bn (February 2015)

Babcock International - Preferred bidder for £7bn contract (May 2014)

Babcock International - Acquires cyber security specialist (February 2014)

Babcock International - Bid pipeline remains promising (January 2014)

Babcock International - Two preferred biddder announcements due (October 2013)

Babcock International - Defence outsourcing firm aiming to exploit record Â£15.5bn bid pipeline (July 2013)

Babcock International - Gain to date:538% (December 2012)

Babcock International (May 2010)

Babcock International (March 2010)

Babcock International - Sharp reduction in borrowings (January 2010)

Babcock International (November 2009)

Babcock International - Positive AGM (August 2009)

Babcock - Defence services group sees near doubling in order book (June 2009)

Babcock International - Two largest divisions going well (March 2009)

Babcock - Strong results rally shares (December 2008)

Babcock International (October 2008)

Babcock - Sharp rise in order book (September 2008)

Babcock International - Huge order book for defence services firm (July 2008)

Babcock International (June 2008)

Babcock International - Eyes up big contract win from new aircraft carrier programme (May 2008)

Babcock International - Price target 640p (March 2008)

Babcock International - Defence services company makes key naval base acquisition (November 2007)

Babcock-International - Gains hit 125% (January 2007)

Babcock - Share price strength puts off bidders (June 2006)

Babcock International - Bid approach (May 2006)

Babcock International - Wins Â£500m contract (January 2006)

Babcock International - Big opportunity in defence outsourcing (September 2005)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

Babcock

September 2024

Related Articles