British engineer Babcock has reported record profit levels in its full-year results for the year ended 31 March 2018.

With underlying revenue rising 2.8% to £5,362.8m (2017: £5,216.6m) and operating profit increasing 1.7% to £584.6m (£574.8m), underlying profit before tax has risen 3.6% to £512.5m (2017: £494.8m).

Babcock also secured over £4.5 billion of new contracts for its order book, including;

• HADES, a new contract to provide technical support services at 17 RAF bases

• 10-year Sellafield nuclear decommissioning contract to provide 'Glovebox' equipment

• First orders received for patented ecoSMRT® liquid natural gas marine transportation system

• Hinkley Point C: new contract from EDF to deliver training for the new build nuclear plant


• Naval support contracts for Collins Class submarines and ANZAC Class frigates

• Australian Defence Force ground support equipment

With a combined order book and bid pipeline of £31 billion, and 76% of underlying revenue in place for 2018/19 (50% for 2019/20), Chief Executive Archie Bethel said the year saw further progress on all fronts.

"Underlying revenue and profits increased to record levels with excellent cash generation, and we further strengthened the balance sheet by reducing our net debt while increasing our dividend for the seventeenth consecutive year," he said.

"We ended the year with an order book and bid pipeline worth £31 billion, which supports our future growth prospects.

"We have always been a specialist engineering services company with a strong UK heritage but the changes we have made in the last couple of years are beginning to deliver meaningful benefits. Our new sector structure is making a real difference, we are increasingly focused on our core business areas of defence, emergency services and civil nuclear, and are on track to exceed our target of having 30% of the Group's underlying revenue coming from international markets by 2022.

"We expect to make further progress this year and are confident about Babcock's longer-term prospects which are underpinned by our technical expertise, unique infrastructure and a sustainable business model which is increasingly relevant to our key customers in non-cyclical and highly regulated markets."

(LM/MH)