Babcock pulls itself back into profit
08:25 12 Jun 2003
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Babcock International has successfully pulled itself back into profit following substantial losses last year.
Today's (Thursday) preliminary results for the year ending 31 March 2003 shows full-year pre-tax profit at £13.4m from a loss of £13.9m last year.
Operating profit, meanwhile, jumped 44% to £22.9m as sales grew each quarter to £409m.
Turnover has also grown 50% during the second half of the year ending March 2003 to £222m from £148m in the equivalent six months of last year.
The group's change of fortune occurred after it positioned itself away from being an engineer to a support services company within the last two years.
Contract wins in the last 12 months include UK government deals with the Non-Project Procurement Organisation and the Ministry of Defence's Single Living Accommodation Modernisation (SLAM) project.
"This strong set of results reflects our strategy to focus on support services activities. During the year, we won a number of significant contracts and are well placed in the process for many others," said chairman Gordon Campbell.
"Babcock can now take advantage of secure long-term contracts which should see earnings grow consistently over the foreseeable future."