Support services group’s interim statement also shows strong cash generation
Engineering support services group Babcock International has reported an order book of £8.3bn, ahead of today’s annual general meeting.
In an interim management statement published today for the period since 31 March 2010, the firm said its financial position remained secure and that performance to date had been consistent with expectations.
According to the report, cash generation across the group remains strong and it continues to use cash to pay down debt, to provide a solid foundation for the enlarged group, following completion of the acquisition of VT Group.
The acquisition has now received all the necessary competition and regulatory clearances, in both the UK and the US, and both Babcock and VT shareholders have voted in favour of the transaction.
A final court hearing to approve the capital reduction of VT required to implement the associated scheme of arrangement will be held later, and following approval the scheme will become effective.
Babcock says it expects significant long-term growth opportunities in both the UK and overseas and that these opportunities are considerably enhanced by the increase in its scale and capabilities achieved through the acquisition of VT.