The group said that within its marine division, a new management structure was in place at the Devenport dockyard and it was confident of long-term work streams.
Babcock confirmed in February that 600 dockyard workers at Devonport would lose their jobs after a halving in the number of submarine programmes it was working on.
In a trading update today, management said it was negotiating support for submarine programmes with the Ministry of Defence. It added: "We would not expect these to be concluded until the second half of the calendar year.”
Babcock's rail division had improved significantly and traded profitably throughout the second half, and its defence services and electrical networks divisions had both traded steadily.
Te group today launches a new division devoted to civil nuclear engineering after acquiring Alstec and International Nuclear Solutions over the past two years.
The group will release its annual results on 13 May.