Babcock International to Deliver "Strong Progress"
LONDON -- Babcock International (ISE: BAB.L) rallied 12 pence, or 1%, to 935 pence in early London trade this morning after saying it had experienced "buoyant market conditions" during the six months to September.
The FTSE 100 member, which claims to be the U.K.'s leading engineering support services company, said it remained confident of meeting its expectations for the full year as well as delivering "strong progress" on last year.
Babcock today confirmed the value of its order book had remained stable at around 13 billion pounds, and that its bid pipeline was worth a further 13 billion pounds. The group also said it expected a "significant number of large opportunities" to be awarded during the next 18 months.
In addition, Babcock claimed it was entering the second half of its financial year with approximately 90% of the group's anticipated revenue for the 2012-2013 financial year currently under contract.
Today's statement indicates Babcock's strong track record should continue for at least another year. Indeed, between 2008 and 2011, the group's revenues, earnings and dividend have all roughly doubled to 3 billion pounds, 62 pence per share, and 23 pence per share, respectively.
The shares, too, have defied the recession, having zoomed 169% higher after hitting a 348 pence low during the banking crash.
Such returns suggest individual shares can still become major winners in difficult markets, and that it may pay to keep an eye on Babcock.
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The article Babcock International to Deliver "Strong Progress" originally appeared on Fool.com.Maynard Paton does not own shares in any of the above companies. The Motley Fool has a disclosure policy.
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