Babcock share price: Order book remains stable at £20bn

on Jul 30, 2015
Updated: Oct 21, 2019
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Babcock (LON:BAB) has this morning updated investors on recent trading, reiterating its full-year expectations.

**Highlights from Babcock’s statement:**
We are on track to deliver our expectations of growth at both the half and full year periods.

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We continue to experience strong demand for the critical services we provide to our customers through existing contracts, and business development remains active in our key markets. Since the full year results announcement on 18 May 2015, the order book has remained stable at £20 billion and continues to provide excellent visibility, with 84% of revenue for 2015/16 and 60% of revenue for 2016/17 already in place.

The bid pipeline has also remained stable at around £10.5 billion, and the tracking pipeline continues to provide significant longer-term opportunities for growth.
The Group continues to maintain a healthy financial position, and once again expects to achieve an operating cash conversion rate of over 100%, excluding capital expenditure, for the 2015/16 financial year. As previously indicated, capital expenditure will peak this financial year at two times depreciation due to our investment in a new Group-wide back office ERP system which began last year, resulting in, as expected, an operating cash conversion of over 70% after capital expenditure.

The Group remains on track to reduce net debt to 1.9 times EBITDA by the end of the financial year, with the reduction from the previous level of 2.2 times EBITDA expected in the second half of the year due to the phasing of dividend payments.
The Group is on track to continue the growth trend of previous years, and to deliver its expected growth in both revenue and earnings per share for both the full and half year periods. Demand for our technical expertise and our ability to deliver complex and critical programmes and projects remains strong in both the UK and overseas, and the Board continues to expect significant opportunities for growth from our move into new markets and geographies, combined with the visibility and certainty of future revenues provided by our £20 billion order book.
As of 07:40 BST, Thursday, 30 July, Babcock International Group PLC share price is 1,039.00p.

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