Babcock International has reported its financial position continues to improve and that it expects significant opportunities in the year ahead.
The group released a statement that said its order book remains stable at around £12 billion and the pipeline of bids at PQQ or ITT stage has increased and now stands at £6bn.
The support services firm said it is confident of achieving £50 million in pre-tax merger benefits and a run rate of £11 million by 31 March, 2011, with annualised financial efficiencies of £8m already generated.
Babcock added it “anticipates the outcome of the comprehensive spending review and strategic defence and security review will lead to significant new outsourcing opportunities.”
The firm confirmed it does not consider its waste operation to be a strategic growth opportunity and is in discussions with Wakefield Metropolitan District Council and interested parties regarding exit options from its activities in Wakefield.
The firm said the strength of its order book and bid pipeline along with its involvement in long-term programmes gives “excellent visibility of future revenue streams,” it is confident of achieving expectations for this financial year and expect to make further good progress thereafter.
- The programme to refinance the group’s £400 million bridge facility is progressing well and this will be followed by the refinancing of the £600 million revolving credit facility early in the next financial year.
- Babcock is one of three bidders for a contract with the Canadian Government to provide refit and upkeep support to their fleet of 30 minor warships and naval auxiliary vessels
- The support services business division has been successful in re-bids for the £120m six-year baggage handling contract for BAA at Heathrow and the 12-year, £86m contract to provide Radiometrics and Calibration services at Sellafield.