BABCOCK International, which operates the Rosyth dockyard and the Faslane base, has reported "strong progress" on 12 months ago and says it should meet full-year expectations.
Babcock said its bid pipeline had risen by £1.5 billion to £15.5bn since it updated the market two months ago, while order books, still at around £12bn, helped to "provide excellent visibility of future revenue streams across the group".
Bidding activity had remained high throughout the year, while a number of significant transformation and investment programmes were being progressed through its civil and military markets.
The group said discussions with the Ministry of Defence on the Maritime Support Delivery Framework contract were con-tinuing positively. "As the new arrangements are expected to become operational later in the financial year, the existing Warship Modernisation Initiative contracts at HMNB Devonport and Clyde have been extended for a further year from April 1, 2013." The only financial implications were a £100 million increase in the order book.
Since the first-half results were released last November, Babcock has landed contracts worth more than £1bn, including preferred bidder on ground- fleet maintenance for British Airways and baggage handling systems operations for Heathrow Airport, totalling £440m, and "two boat sets of weapon handling and launch equipment for an international customer", expected to be worth £100m. Babcock said it remained well positioned to offer cost-efficient support solutions, and believed "the current economic climate will continue to create significant medium and long-term growth opportunities for the group, both in the UK and overseas".
The shares eased 20p to 1083p.
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