Brokers certainly like the stock and trading on a forward P/E of just over 9 going into 2010, far too cheap imho.

Babcock International Group PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Arden Partners
12-03-09 BUY 119.00 41.10 13.50 143.00 49.40 15.50

KBC Peel Hunt Ltd
10-03-09 HOLD 118.36 40.40 13.50 140.73 45.24 15.50

Singer Capital Markets Ltd
09-03-09 BUY 120.10 40.50 14.00 144.40 46.90 15.50

Teathers
04-03-09 BUY 120.51 40.33 13.40 146.94 46.96 15.00

ABN AMRO
10-02-09 HOLD 122.90 39.77 12.50 138.90 44.42 15.00

Numis Securities Ltd
21-01-09 ADD 119.80 41.10 13.00 145.40 48.70 14.10

NCB Stockbrokers Ltd
08-01-09 ACCU 41.25 12.45 46.74 14.37

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 119.56 40.68 13.37 144.16 47.29 15.37

1 Month Change 0.19 0.09 0.02 0.01 0.45 0.03
3 Month Change 0.49 -0.04 0.09 -0.07 -0.46 0.19


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS 36.83% 44.23% 16.25%
DPS 34.59% 49.38% 14.96%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 135.90m 172.74m 194.28m

EBIT 105.00m 142.06m 162.84m

Dividend Yield 1.97% 2.94% 3.38%

Dividend Cover 3.15x 3.04x 3.08x

PER 16.13x 11.18x 9.62x

PEG 0.44f 0.25f 0.59f

Net Asset Value PS -80.79p 168.28p 185.86p

Recently In a trading update, says its order book continued to rise above 5 billion pounds ($7.08 billion) as it signed more contracts, while its performance for the year ending March 2009 was on track to meet expectations. The engineering company, which is helping to build Britain's new aircraft carriers as well as its railways and managing nuclear sites, said its order pipeline made future performance more visible and was broadly resilient to the economic downturn. "We have won a number of contracts since the half year, so it (the order book) is larger than 5 billion pounds," Chief Executive Peter Rogers told Reuters in an interview. He added that he hoped to sign a 400 million pound extension to a dockyard management contract at Devonport in the next couple of months. Analysts are expecting pretax profit before amortisation and exceptional items to come in at 119 million pounds ($169 million) for the year to end March, according to Reuters estimates, up from 95.5 million pounds last year.

Just added on a bit of intra day weakness.

Forward P/E into 2010 of just over 9 is way tooo low and the stock is a screaming Buy imho.

Recent broker Buy notes aswell.....

Babcock International Group PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Numis Securities Ltd
31-03-09 BUY 117.20 40.40 13.00 143.60 48.10 14.10

Arbuthnot Securities
31-03-09 BUY 119.10 40.15 13.60 139.54 44.61 15.00

Concensus broker SP target 570p.......

Consensus Broker Estimates

Current Fiscal Year 2009

Consensus Type Mean

Forward PE 10.13

Target Price 5.70

Long Term Growth Rate 18.40

Broker Estimates

Consensus High Low Number of Estimates

Sales 1,868.79 1,948.90 1,675.00 10.00
Profit 118.96 122.90 111.95 9.00
EPS 0.41 0.42 0.38 12.00
DPS 0.13 0.14 0.12 12.00

Recent Broker Buy note..

31-Mar-09 Babcock International Group BAB Arden Partners Buy - - Reiteration

Suprisingly volatile today, added on the dip in the last half hour.

Short term stochs is showing stock is oversold.

"On 23 March 2010, the boards of Babcock International Group PLC and VT Group plc announced that they had agreed the terms of a recommended acquisition by Babcock of the entire issued and to be issued share capital of VT to be effected by a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.

Further to that announcement, Babcock and VT announce that the Panel on Takeovers and Mergers has granted them an extension in respect of the requirement under Rule 30.1 of the City Code on Takeovers and Mergers to post the scheme document within 28 days of the announcement made on 23 March 2010.

Accordingly, Babcock and VT currently expect that the scheme document will be posted to VT shareholders on or around Monday 26 April 2010. In addition, Babcock expects, on the same date as the posting of the scheme document, to make available its prospectus in connection with the Acquisition on its website (other than to persons in certain jurisdictions, as will be specified in the prospectus) and to post its circular (including a notice of general meeting) in connection with the Acquisition to Babcock's shareholders.

In addition, Babcock is pleased to announce that early termination of the waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976 (and the regulations made thereunder) was granted in respect of the Acquisition on 19 April 2010, and accordingly the related condition to the Acquisition is now satisfied. The Acquisition remains conditional upon the satisfaction or, if permitted, waiver of the remaining conditions to the Acquisition announced by Babcock and VT on 23 March 2010."

Business Financial Newswire
"Babcock International unveils strong full year with an 8.3bn order book underpinning the positive outlook for the group.

Revenues for the year to the end of March dipped to 1,895.5m from 1,901.9m but operating profits rose 11% to 148.1m and pre-tax profits increased 21% to 129.2m.

Underlying operating profits increased to 164.2m from 147.3m and underlying pre-tax profits rose 20% to 145.3m.

The full year dividend is up 22% at 17.6p.

Chief executive Peter Rogers said: "Babcock has delivered another set of strong results.

"We consider the major markets in which we operate remain attractive with significant long-term growth prospects.

"We believe that our strong market positions and our track record of delivering efficiencies for our customers will be beneficial as pressure on public spending increases.

"The proposed acquisition of VT Group, further strengthens our scale and capabilities in our core markets.

"Our future is supported by an order book of 8.3bn and by the embedded relationships with our key customers that provide us with long-term visibility of future work streams.

"We believe the outlook for the 2010-11 financial year remains positive and we look forward to another year of good progress."

BAB goes ex-divi 16th June '10, paying 12.8p

StockMarketWire.com
"The Office of Fair Trading has decided not to refer the anticipated acquisition by Babcock International of VT Group to the Competition Commission. "

StockMarketWire.com
"Engineering group, Babcock International says the 2010/11 financial year has started well and trading is in line with expectations.

The Group reports excellent visibility, supported by the long-term nature of its contracts, a strong order book and robust bid pipeline.

The Board says that the outlook for the 2010/11 financial year remains positive and it looks forward to another year of good progress. Since the start of this financial year, the Group says the order book has been stable at around 8.3bn.

Cash generation has remained strong and the Group has continued to use cash to pay down debt

As the Government seeks to address the fiscal deficit in the UK, the Group believes there will be an increase in outsourcing opportunities in its chosen markets. "

StockMarketWire.com
"Engineering support services firm Babcock International has completed its acquisition of VT Group.

Trading in VT shares on the London Stock Exchange will be cancelled at 8a.m tomorrow (9th July). "

StockMarketWire.com
"Engineering support services group Babcock International continued to make good progress during the fist half of its financial year.

Trading and the financial and operational performance of the group's long-term support contracts have been strong and in line with our expectations.

The group's order book now stands at around 12bn with the pipeline of opportunities that are currently being bid valued at around 5bn. "

"Despite profit being 2% below Panmure Gordon's forecasts, the broker has retained its 'buy' recommendation for Babcock International after a "solid set of first half results".

"Marine once again delivered a robust growth and margin performance, with the company seeing lots of opportunities in its Defence business."

While US operations remaining stable and in line with expectations, South Africa continues to go "from strength to strength", the broker says.

The broker notes that the integration of VT is progressing well, with Babcock confident of achieving the merger benefits of 50m by 2013.

A better-than-expected cash conversion of 189% brought net debt down to 796m, compared to the broker's forecast of 861.1m. That has given the company scope to bump up the interim dividend by 8% or so, in line with the group's avowed intention to stick to a progressive pay-out policy.

Panmure maintains its target price of 750p, based on 13 times the projected 2013 earnings per share value, and with an excess of 30% upside potential, it confirms a 'buy'.

KBC Peel Hunt is also a buyer of the shares, but won't be adjusting its full year estimates after the "in line" interim results."

BAB goes ex-divi 15th Dec '10, paying 5.2p

StockMarketWire.com
Babcock initiated with buy recommendation at RBS, target price 620p.

StockMarketWire.com
Engineering support services provider Babcock International Group PLC will release its interim management statement on Tuesday, 25th January.

StockMarketWire.com
Engineering support services group Babcock International continues to trade in line with its expectations.

The group's order book remains stable at around 12bn reflecting the constant flow of new contracts, rebids and contract extensions from the pipeline into the order book.

As anticipated, the pipeline of bids at PQQ or ITT stage has increased and now stands at 6bn and the board remains confident in the outlook for this financial year and thereafter.

It adds: "As part of the Government's ongoing discussions with its key suppliers, we continue to be involved in positive dialogue with our key customers at the Ministry of Defence and with the Cabinet Office.

"We expect discussions with the Cabinet Office to be concluded by the end of the financial year.

"We anticipate the outcome of the comprehensive spending review and strategic defence and security review will lead to significant new outsourcing opportunities.

"We believe our scale, expertise and track record of delivering financial and operational efficiencies will place us in a strong position."

Wakefield Waste PFI Project - Teaming Agreement
Babcock International announces it has entered into a teaming agreement with Shanks Waste Management Ltd in respect of the Wakefield Waste Management PFI project. Shanks brings strong and proven waste management experience to the team which will now seek to achieve financial close. The agreement provides a mechanism for Shanks to acquire Babcock's waste business following financial close, which is expected later this year.

Joanne Roney, Chief Executive of Wakefield Metropolitan District Council comments

"We are very pleased that Babcock and Shanks have entered into this agreement and I look forward to working with the team to move the project to financial close".

Babcock International Group PLC will release its Pre-close Trading Statement on Tuesday 29th March 2011, ahead of reporting full year results for the year ending 31st March 2011 on Tuesday 17th May 2011.

Just gone long again.

Chart looks tasty.........

02-Mar-11 Babcock International Group BAB Panmure Gordon Buy 558.00p 750.00p 750p SP target

Currently trading on a P/E of around 11 where as in the past the historical P/E is around 17 to 18 so we have a fair way to go and the stock is way undervalued imo.

Heres Brokers SP targets going back to December......

Date Broker name New Price Old price target New price target Broker change

02-Mar-11 Panmure Gordon Buy 558.00p 750.00p - Reiteration
11-Feb-11 Seymour Pierce Buy 571.00p 670.00p - Reiteration
02-Feb-11 Arden Partners Buy 567.00p - - Reiteration
25-Jan-11 Seymour Pierce Buy 579.00p 670.00p - Reiteration
21-Jan-11 Panmure Gordon Buy 560.00p 750.00p - Reiteration
11-Jan-11 Arden Partners Buy 590.00p - - Reiteration
10-Jan-11 Panmure Gordon Buy 570.50p 750.00p - Reiteration
02-Dec-10 Royal Bank of Scotland Buy 550.50p - 620.00p New Coverage

Some pretty impressive targets their.

I have plenty of these from the 518p level and similar broker price targets have been around for quite a while. Clearing the 600p level and staying there seems to be a real struggle. With hindsight I should have traded in & out. I thought the VT takeover would have pumped up the valuation, but little seems to have happened.

.

StockMarketWire.com
Support services group Babcock International said the trading environment as a whole has been stable, with no significant changes to market conditions.

The Group's financial performance for the 2010/11 full year remains consistent with our expectations at the time of our Interim Management Statement on 25th January 2011. Across divisions, all major support contracts continue to perform well and the group continues to benefit from the long-term nature of contracts.

VT Integration - The structural reorganisation following the acquisition has been completed speedily and efficiently and the business units are focused on delivering the significant operational benefits of bringing the two complementary businesses together. The delivery of merger benefits is on track and Babcock said it is confident of achieving 50m (pre-tax) in total and as scheduled.

Cash generation throughout the year has been strong and has been used to pay down debt. As a result, net debt is expected to be below 750m at end-March 2011 and the resulting net debt to ebitda ratio to be significantly below the 2.8 times reported at the end of the first half.

Since the completion of the VT acquisition in July, the order book for the combined Group has been stable at around 12bn, reflecting a steady inflow of new contracts, rebids and contract extensions from the bid pipeline.

The pipeline of bids at PQQ or ITT stage currently stands at c 7bn, increasing from 6bn at the time of the IMS in January 2011. Since the award of the five year, 200m British Forces Germany facilities management contract announced in February, Babcock has also been down-selected by the MoD as the sole industry bidder for the 10 year, c 300m Maritime Equipment Transformation (MET) programme.

Babcock said it remains confident that the current economic climate will drive both public and private sector organisations to increase their focus on outsourcing as they seek to reduce operational costs and drive efficiencies. Outlook

In both the UK and overseas the Group is well placed in markets that offer significant long-term growth opportunities.

With good progress being made to achieve the synergy savings identified as part of the VT acquisition and improving contract margins in the Support Services and International divisions, Group operating margins have further scope to improve from the 31st March 2010 level.

Babcock will announce full year results on 17th May 2011.

Solid statement.

Looks to me like this ones hit a top for the time being and I can see it falling back as it has done historicaly 150 points to around the 520p/500p support.

Must say had a good run out of it, But TA pointing to weakness now.

Looking like a Strong SHORT here at BAB Babcock............

Interesting to note as we have gotten nearer resistance on the chart above the amount of stock on loan , ie a proxy for shorting has increased. Obviously other chartists are taking short posiions here in anticipation off a fall in the SP.......

definite short for sure imo - everything including 29/3/11 statement above & other items points to it strongly

btw the reason babcock sole bidder for the 10 year c 300m Maritime Equipment Transformation (MET) programme i am told is that no one else is interested due to various complexities, has to go through the long drawn out european directive ojeu proces etc etc and potential tiny margin - MET driving costs down apparently requiring according to rumour fixed price / fixed deliverables rather than the much more profitable time & materials option - just passing on info

Cheers Gibby, much appreciated.

BAB BABCOCK...

Done same gone from short to long.

10-May-11 Babcock International Group BAB UBS Buy 651.00p - 770.00p New Coverage

770p SP target.

BAB excelent results this morning expect Broker upgrades....

BAB Heres last 3 Broker Buy recommendations............

Date #ADVFN $205 http://t.co/AkdAQI4

Broker upgrades out already on BAB

..Investech raises Babcock International (BAB.L) target price to 700p from 650 and rates buy
* Panmure raises its target price to 780p from 750p and rates buy
* Peel Hunt raises its price target to 735p from 675p and rates buy

VT benefits start to accrue for Babcock

Created: 17 May 2011 Written by: Mark Robinson

Though public spending reviews and private sector retrenchment provided the backdrop for much of the past year, a subsequent rise in outsourcing opportunities and the successful integration of VT Group provide grounds for optimism for Babcock International.
During a period of 'tight financial constraints', the acquisition of VT has broadened the range of engineering support services that Babcock can offer its existing and prospective customer base. So, while the group order book has remained stable at around 12bn since the acquisition, Babcock experienced an encouraging 70 per cent rise in its bid pipeline during the second half to 8.5bn.
At constant exchange rates and adjusting for disposals and the 856m nine-month contribution from VT Group, full-year underlying revenues rose 5 per cent. Operating margins rose 1.3 percentage points to 9.9 per cent, reflecting 11.6m of cost savings in the period and growth of higher margin business in support services, defence and security. Cost savings are expected to rise to 50m by 2013.
Investec Securities anticipates current year adjusted pre-tax profits of 280m and EPS of 61p (228m and 55p in 2011).
.
BABCOCK INTERNATIONAL (BAB)
ORD PRICE: 689p MARKET VALUE: 2.5bn
TOUCH: 688.5-691p 12-MONTH HIGH: 693p LOW: 489p
DIVIDEND YIELD: 2.8% PE RATIO: 22
NET ASSET VALUE: 282p* NET DEBT: 71%
Year to 31 Mar Turnover (bn) Pre-tax profit (m) Earnings per share (p) Dividend per share (p)
2007 0.99 57 21.5 8.10
2008 1.56 85 30.0 11.5
2009 1.90 107 37.4 14.4
2010 1.90 129 46.3 17.6
2011 2.76 115 31.3 19.4
% change +45 -11 -32 +10
Ex-div: 8 Jul
Payment: 9 Aug
*Includes intangible assets of 2.09bn, or 582p a share
More analysis of company results
TIP UPDATE:
Buy
Babcock's highly specialised, long-term naval contracts ensure that over two-thirds of its revenues are already contracted for 2011-12, while new business streams are improving. At 689p, Babcock's shares are up 18 per cent on our buy tip (689p, 1 July 2010), but are trading at a modest 11 times forwards earnings and continue to rate a buy.
Last IC view: Buy, 571p, 26 January 2011

http://www.investorschronicle.co.uk/Tips/Buy/TipsOfTheWeek/article/20110517/63fb67f8-807e-11e0-8834-00144f2af8e8/VT-benefits-start-to-accrue-for-Babcock.jsp
--------------------------------------------------------------------------------

09 May Babcock... BAB Panmure Gordon Buy 809.75 850.00 850.00 Retains

850p SP target.

Done an about turn here gone short.
The uptrend is breaking down.

All the lower indicators have turned
negative.

Tweeted this earlier....

Gone short on BAB Babcock. Bullish uptrend breaking down, momentum and ADX turning negative. Down through 13 day EMA.

BAB shorted first thing......

BAB Babcock

Technically uptrend has broken
down and lower indicators are turning
bearish.

Looks a good call GF.

Yep but beware as SC says results tues, mind most results even if good have seen sps slipping. of late.

Bought myself some BAB again. Nice chart with Bullish engulfing candle paving the way. Results were good yesterday aswel.



Like the lower indicators on the Daily Chart.........

BAB BABCOCK INTERNATIONAL GROUP

Bought in here again.

Still way too cheap imo.

Brokers certainly like it.......

Date Company Name Broker Rec. Price Old target price New target price Notes

03 Oct Babcock... JP Morgan Cazenove Overweight 948.50 990.00 990.00 Reiterates
02 Oct Babcock... Charles Stanley Hold 948.50 - - Retains
02 Oct Babcock... Shore Capital Buy 948.50 - - Retains
02 Oct Babcock... Peel Hunt Buy 948.50 975.00 975.00 Reiterates
02 Oct Babcock... Seymour Pierce Buy 948.50 950.00 950.00 Reiterates
02 Oct Babcock... Investec Buy 948.50 970.00 1,000.00 Reiterates
27 Sep Babcock... Goldman Sachs Neutral 948.50 1,036.00 1,097.00 Reiterates

NORWICH & PETERBOROUGH B/S

BABCOCK INTERNATIONAL GROUP

BAB RATIOS

A forward P/E of just 12.8 to
2014 compared to an actual of 21.09
historical in 2012 just shows how
cheap this company is at the moment.

RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £330.90m £392.02m £412.45m
EBIT £216.00m £352.40m £377.20m
Dividend Yield 2.11% 2.62% 2.86%
Dividend Cover 2.25x 2.82x 2.72x
PER 21.09x 13.53x 12.85x
PEG 0.35f 0.24f 2.42f
Net Asset Value PS -271.95p p p

BAB BABCOCK INTERNATIONAL

Looks cheap on a forward P/E to
2014 of just 12.8

Actual in 2012 was a P/E of 21.09

Further scope for a re -rating.

Babcock International Group PLC

FORECASTS 2013 2014
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
02-10-12 HOLD 308.00 70.20 25.50 350.00 78.40 28.00
Arden Partners
02-10-12 BUY 316.00 71.00 26.00 320.00 71.96 27.50
N+1 Brewin
01-10-12 ADD 316.70 70.80 23.80 312.40 69.80 25.80
Peel Hunt
01-10-12 BUY 313.11 69.45 24.97 310.73 68.85 27.47
Charles Stanley
28-09-12 HOLD 313.46 68.87 24.56 344.72 74.02 26.82
Shore Capital
28-09-12 BUY 315.50 68.40 25.00 331.90 73.70 27.50
Westhouse Securities
27-09-12 BUY
Seymour Pierce
03-09-12 BUY 317.70 71.00 342.80 75.70
Investec Securities
17-08-12 BUY 312.60 69.10 24.30 342.00 75.40 26.70
Edison Investment Research
25-05-12 None
Numis Securities Ltd
17-05-12 ADD 314.20 68.90 23.00 397.10 76.70 25.00

2013 2014
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 314.12 69.83 24.79 334.70 73.53 26.99
1 Month Change 0.06 0.03 0.02 0.59 0.22 0.01
3 Month Change 1.53 1.13 0.39 -9.70 -0.66 0.30


GROWTH
2012 (A) 2013 (E) 2014 (E)
Norm. EPS 60.79% 55.81% 5.30%
DPS 10.56% 24.55% 8.88%

INVESTMENT RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £330.90m £392.02m £412.45m
EBIT £216.00m £352.40m £377.20m
Dividend Yield 2.11% 2.62% 2.86%
Dividend Cover 2.25x 2.82x 2.72x
PER 21.09x 13.53x 12.85x
PEG 0.35f 0.24f 2.42f
Net Asset Value PS -271.95p p p

Investors Chronicle.....

IC TIP UPDATES:

Support services giant Babcock International ( BAB ) has issued a solid trading statement for the six months to September. Cash generation has been strong which means debt will fall and the order book has remained solid at £13bn. We keep our buy.

Good call here GF, I was skeptical of this stock... Not sure its worth getting in now though!

Babcock International Group PLC (Babcock)

Babcock to support Hitachi on UK nuclear new-build programme

Babcock, the UK's leading engineering support services company, announces that it has signed a Memorandum of Understanding to join with Hitachi Ltd (Hitachi) to plan and deliver its new nuclear reactors in the UK. The agreement follows the announcement of Hitachi's acquisition of Horizon Nuclear Power.

Under the terms of the agreement, Babcock will discuss with Hitachi and its partners, including Rolls Royce, how its skills and capabilities can be best used to support the delivery of Hitachi's nuclear new build programme in the UK.

Peter Rogers, Chief Executive of Babcock commented:
"We are delighted to be working in partnership with Hitachi, a recognised leader in the global nuclear market. Our significant experience in the UK nuclear sector complements the international experience of Hitachi. We look forward to exploring how our skills, capabilities and experience can contribute to the delivery of this project of national strategic importance, meeting the future energy demands of the UK and creating long-term opportunities for UK companies."

Ends

Interim Management Statement

Overview

The Group has traded well during the period. We remain confident of meeting our expectations for this financial year, as set out at the time of our half year results announced on 6 November 2012, and of delivering strong progress on last year. Market conditions remain positive, bidding activity is high across the Group and we continue to track significant new outsourcing opportunities.

StockMarketWire.com
Engineering support services company Babcock International said trading in its markets for the half year ending 30th September 2013 has remained positive.

There has been no material change in the Group's financial position as set out in the Interim Management Statement on 11th July 2013.

The Board remains confident that the Group will continue to make further strong progress and that results for the 2013/14 financial year will be in line with its expectations.

Babcock will release its half year results on Tuesday 12th November 2013.

StockMarketWire.com
Infrastructure group Babcock International said today that total revenue for the year to end-March was £3.547bn which represents growth of 9%.

Adjusting for movements in foreign exchange growth was 11% (2013: 7%)

Underlying operating profit increased by 9% to £377.9 million (2013: £345.6 million) which gave a Group operating return on revenue of 10.7% (2013: 10.7%). Excluding the effect of foreign exchange movements growth in operating profit was 11% (2013: 15%).

Profit before tax, amortisation of acquired intangibles and exceptional charges increased by 15% to £316.1 million (2013: £275.0 million).

Peter Rogers, CEO, commented:

"Babcock maintained its record of delivering strong revenue and profit growth with all our divisions making progress, building on our leading position in engineering support services. We produced a top-class financial performance, driving strong cash flow and cash conversion, delivering another year of growth in shareholder value.

Our markets remain buoyant and we enter the new financial year with a powerful platform for further growth in the UK and overseas. Building on the strong growth in revenue and earnings delivered in the 2013/14 financial year, the Board is confident the Group will continue to make further strong progress in the 2014/15 financial year."

Ex divi wed 2nd July 2014 (16.4p)

Babcock - just a note on the potential yes vote to Scottish Independence.

Babcock International is the owner of the Rosyth Dockyard in Fife and has cautioned that independence could potentially mean the end of its Royal Navy contracts. Michael Fallon has said that "UK warships are only built in UK shipyards" and there is a concern that an independence vote will threaten shipbuilding in Scotland. The Group has already engaged in discussions with unions about the potential impact of a Yes vote on its business. Operations in Clyde, Coulport and Faslane will also be at risk. Around 4,750 staff are employed in Scotland.

StockMarketWire.com
Babcock reports continued good growth from core businesses in the six months to the end of September enhanced by strong performance from Avincis.

Total revenue for the first half increased by 24% to £2,103.2 million (2013: £1,700.6 million), which includes £263.6 million of revenue from Avincis from 16 May 2014.

The Babcock businesses excluding Avincis, delivered strong revenue growth for the first half of 10% at a constant exchange rate, slightly ahead of the 9% growth achieved in same period last year.

Babcock said the main contributor to this growth was the Support Services division which reported a 13% increase in revenue benefiting from increased activity at its subsidiary Cavendish Nuclear as well as from its fleet support activities and a full period contribution from the Conbras business in Brazil.

The Marine and Technology division also continued to progress well delivering 11% growth in revenue mainly as a result of increased warship refit activities, including the Queen Elizabeth class (QEC) aircraft carrier programme, and growing commercial activities. Despite strong growth in Support Services and Marine and Technology, the Group's revenue growth was offset by ongoing weakness in the South African Rand. Within the International division, the South African business achieved a 11% increase in revenue in local currency, although this translated into a 7% reduction in revenue in Sterling terms.

Total underlying operating profit for the Group increased by 39% to £239.5 million (2013: £172.8 million ). Excluding Avincis, operating profit increased by 10% on a constant exchange rate basis. The Defence and Security division achieved a 6% increase in operating profit, benefiting in particular from achieving milestones within the FSTA programme.

For the Support Services division, despite strong growth in revenue, profits were diluted by low margin take in the early stages of new contracts, particularly within Cavendish Nuclear and the Critical Services business.

The Group operating margin increased to 11.4%, benefiting from strong operating margins in the Avincis business of 19.9%, which benefited from firefighting activities during the summer months. Excluding Avincis, the operating margin for the Babcock business remained stable at 10.2% (2013: 10.2%).

Total net finance costs were £52.5 million (2013: £31.1 million) reflecting the increase in total Group debt following the acquisition of Avincis. This includes Group finance costs, including Avincis costs, of £31.4 million (2013: £13.0 million). jv interest costs increased to £15.6 million due to fair value movements on interest rate swaps (2013: £12.7 million) and retirement benefit interest remained broadly in line with last year at £5.5 million (2013: £5.4 million).

Babcock said: "During the first half, following completion of the acquisition, we made good progress refinancing Avincis' debt. We repaid and cancelled two revolving credit facilities for 145 million and £25 million as well as the 470 million and £260 million high yield notes.

"We successfully issued a 550 million bond, the proceeds from which were used to pay off part of the £900 million bridge facility with the remainder expected to be repaid before the year end. These actions achieved the £35 million of interest synergies targeted at the time of acquisition."

Chief executive Peter Rogers said: "In the first half, Babcock further strengthened its position as Britain's leading engineering services group while strengthening its international position with the acquisition of Avincis.

"We achieved strong organic growth in both revenue and profit, with all our existing core businesses continuing to move forward. Avincis made an excellent start under our ownership and has fulfilled our expectations at the time of acquisition.

"Our markets remain buoyant and our increased dividend reflects the Board's confidence that we will continue to make strong progress this year and deliver results in line with our expectations."

Interim dividend
As the Group continues to make strong progress and with visibility remaining excellent, the Board's confidence is reflected in a 10% increase in the half year dividend to 5.5 pence per share (2013: 5.0 pence per share restated to reflect rights issue). This will be paid on 14 January 2015 to shareholders on the register at 12 December 2014.

StockMarketWire.com
Babcock has confirmed it has entered into contracts with the UK Ministry of Defence for the acquisition of the Defence Support Group and its associated service provision contract.

Through this, Babcock will exclusively provide the maintenance, repair, overhaul and storage of a range of current military vehicles and light weapons.

This follows an announcement made on 19 November.

Babcock will acquire DSG for a consideration of £140 million and estimates that the service provision contract and output based services will be worth c £2 billion over ten years. It is expected the acquisition will complete on 31 March 2015 and the service provision contract will start on 1 April 2015.

StockMarketWire.com
Engineering support services group Babcock International continues to experience strong demand for its services through existing contracts and bidding and business development activities remain buoyant.

The group says that following a strong performance in the first half of the 2014-15 financial year from all the Babcock businesses and the Avincis acquisition, it has continued to trade well since the start of October.

It says the board remains confident that the results for this financial year will be in line with its expectations as set out at the time of the half year results announcement on 20 November.

It says: "We entered the fourth quarter with an order book of c £20 billion and a bid pipeline of c £13 billion, which combined is a new high for the Group. The group's order book now provides visibility of over 70% of anticipated revenue for the 2015/16 financial year."

StockMarketWire.com
Engineering support services group Babcock has continued to make strong progress and expects full year results to be in line with its forecasts.

Babcock, will be hosting a seminar for analysts and investors this afternoon, to discuss the Mission Critical Services business, part of the International division. No material new information will be disclosed as part of this seminar.

StockMarketWire.com
Babcock International Group is on track to deliver its expectations of growth at both the half and full year periods, shareholders at the annual general meeting today will be told.

the group says it continues to experience strong demand for the critical services it provides to customers through existing contracts, and business development remains active in its key markets.

Since the full year results announcement on 18 May, the order book has remained stable at £20 billion and continues to provide excellent visibility, with 84% of revenue for 2015/16 and 60% of revenue for 2016/17 already in place. The bid pipeline has also remained stable at around £10.5 billion, and the tracking pipeline continues to provide significant longer-term opportunities for growth.

StockMarketWire.com
Babcock reports continued strong growth in the six months to the end of September with excellent visibility of future revenues.

Total revenue for the first half increased by 12% to £2,349.2 million (2014: £2,103.2 million), equating to 10% organic growth at constant exchange rates. The largest contributor to this growth was the Support Services division which reported a 30% increase in revenue, benefiting from increased activity on long term decommissioning projects in its subsidiary, Cavendish Nuclear. The Marine and Technology division delivered another strong performance in the period, with growth of 11% driven by an increase of activity across all its markets.

This more than offset the expected first half reduction of 3% in the Defence and Security division, due to programme phasing within the AirTanker joint venture and the ending of the Prime contracts in January 2015, and the headwinds from weaknesses in oil and commodity prices affecting parts of the International division. Total underlying operating profit for the group increased by 6% to £253.0 million in the first half (2014: £239.5 million), equating to 8% organic growth at constant exchange rates. As previously guided, the increase was at a lower rate than revenue mainly as a result of the early stages of the long-term Magnox and Dounreay decommissioning projects. This provided an overall Group operating margin of 10.8% (2014: 11.4%). Total net finance costs reduced to £39.4 million (2014: £52.5 million), reflecting the refinancing of the Group following the acquisition of Avincis (now MCS) and the halving of retirement benefit interest to £2.6 million (2014: £5.5 million). Total profit before tax increased by 14% to £213.6 million (2014: £187.0 million). Taxation charges, including the Group's share of joint venture tax, were £36.3 million (2014: £33.7 million) representing an effective underlying tax rate of 17% (2014: 18%). The group said that sterling strengthened significantly against the main trading currencies of the Group compared to the first half of 2014/15, but stabilised in the second half of last financial year. However following the half year end, sterling has strengthened further. A 10% increase in the euro affects revenue by around £31.0 million and operating profit by £6.0 million. A 10% movement in the rand affects revenue by around £27.0 million and operating profit by £2.4 million.

Chief executive Peter Rogers said: "Babcock has maintained its record of strong growth in revenue, profit and earnings with continued robust cash generation and conversion. Our sector leadership positions, excellent track record and operational scale enable us to continue to capitalise on healthy levels of demand in established and new markets, in Britain and overseas. "Our order book remains at a record level and gives us excellent visibility of future revenues, whilst our replenished bid pipeline provides further opportunities for long-term growth. The Board therefore remains confident that we will continue to make good progress and that our full year results will be in line with our expectations."

StockMarketWire.com
Babcock International's underlying pre-tax profits rose by 4.9% to £239.5m in the six months to the end of September.

Underlying revenues were up 5.9% at £2,638.9m.

On a statutory basis, pre-tax profits were up 11.3% at £181.9m and revenues rose by 6.6% to £2,316.7m.

The order book stood at £18.5bn - down 7.5% - while the bid pipeline rose by 13.0% to £12.2bn.

The board declared a dividend of 6.85p per share - up 5.4%.

Chief executive Archie Bethel said: 'Babcock made good progress during the first half, building on our leadership position in the engineering services market.

'We increased revenue, profit and earnings with underlying organic revenue growth at constant exchange rates of 5%, and are maintaining our track record of increasing returns to shareholders by again raising our interim dividend.

'We completed our sector realignment, successfully establishing the springboard for our next phase of development. Our competitive strength is reflected in our double-digit margin, our continued strong win rates and the increase in our combined order book and pipeline to £31 billion. 'The increasing number and value of our opportunities both in the UK and internationally, where we continue to gain traction, highlights Babcock's long-proven ability to grow despite uncertain market conditions.

'Our focus on technology-intensive critical services where barriers to entry are high has consistently enabled us to generate sustainable growth regardless of any decline in spending on original equipment.

'I expect this to remain a key element of differentiation for Babcock in the coming months and years.

'We have excellent revenue visibility with 92% of budgeted revenue now in place for FY18, and we expect a slight improvement in overall group margin during the second half.

'We therefore remain confident that full year results will be in line with our expectations and that we will make further good progress beyond this year.'

Down 10% on quarterly update.

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