Engineering group Babcockhas announced that trading is in line with expectations as it said its move to focus more on track renewal, high output and signalling is “progressing well”.
In a stock exchange announcement, the company revealed an order book across all its divisions, comprising work on submarines, aircraft carriers and other vehicles, of £5.5 billion, 70 per cent up on the previous year.
In its rail division, it said: “The planned exit from multi-disciplinary project work, representing annual revenue of approximately £55 million, is progressing well and will refocus the business on the profitable areas of track renewal, high output and signalling. Restructuring costs in the second half of the year are expected to be in the order of £1 million.”
More generally, the firm said it was refocusing to specialise in areas with “good long-term growth prospects”
“Over recent years we have grown our business to achieve leading positions in markets with good long-term growth prospects and where our customers’ budgetary spend is non-discretionary. We are confident that all our major market segments remain attractive and that growth prospects for the Group as a whole remain strong.”