Company says order book has increased to £6bn, with nuclear and marine divisions doing particularly well
Babcock is restructuring its rail division in a bid to improve financial performance, but has said overall trading is in line with expectations.
In a stock market update for the period since 31 March, the firm said its rail team was withdrawing from “unprofitable, multi-disciplinary project work” and expected the process to be almost finished by the end of the first half of the financial year.
But Babcock said its nuclear and marine divisions had performed particularly well and its order book had increased to £6bn of the back of recent contract wins.
It added that the power engineering market in South Africa was “robust”.
The statement said: “The major markets in which we operate remain resilient and we remain confident they will continue to provide significant opportunities for growth.
“The strength of our order book combined with a robust bid pipeline provides us with excellent long-term visibility and security of future revenues.”