Babcock increases its 2016 interim dividend by 10%

DividendMax Ltd.

Babcock increases its 2016 interim dividend by 10%

Highlights

Continued strong growth

o 12% growth in underlying revenue; 10% organic growth at constant exchange rates

o 6% growth in underlying operating profit; 8% organic growth at constant exchange rates

o 14% growth in underlying profit before tax

Excellent revenue visibility

o 92% of revenue for full year 2015/16 in place as of 30 October 2015

o 60% of revenue for full year 2016/17 already under contract

o £20 billion order book, reflecting £2 billion intake during the period
 

Replenished £10.5 billion bid pipeline provides further opportunities for growth

o £2.5 billion of new opportunities added to the bid pipeline during the period

Continued pre-capital expenditure cash conversion of over 100%

o Post-capital expenditure conversion of around 70% as anticipated

Ongoing focus on creating shareholder value

o 11% increase in underlying EPS to 34.5 pence

o 10% increase in interim dividend to 6.05 pence

Companies mentioned