Babcock International Group Plc have announced their plan to reinstate dividends following a four-year hiatus. An interim dividend of 1.7 pence per ordinary share (HY23: nil) is payable on 19 January 2024 to shareholders whose names appear on the register at the close of business on 24 November 2023. Shareholders may participate in the dividend re-investment plan and elections must be made by 28 December 2023.
Other Financial Highlights Include:
- Contract backlog £9.6 billion, down year-on-year due to the impact of disposals, up slightly since year end
- Revenue up 2% to £2,177 million. Organic growth of 18%, including major infrastructure programme growth, offset FY23 disposals
- Underlying operating profit up 27% to £154 million, ahead of expectations, primarily due to earlier than anticipated receipt of licence income from the Polish frigate programme
- Underlying operating margin increased 140 basis points to 7.1%, boosted by the licence income
- Underlying basic earnings per share up 30% to 20.6p
- Underlying free cash flow of £67 million, driven by 82% underlying operating cash conversion
- Net debt to EBITDA reduced to 1.1x on a covenant basis (FY23: 1.5x). Net debt reduced by £72 million to £493 million
