News

Babcock International Group Reports Decline in Pretax Profit for Fiscal 2023

1 Mins read

Babcock International Group, a leading engineering company, announced on Thursday a decline in pretax profit for fiscal 2023, falling short of market expectations due to higher costs.

  • Pretax profit for the year ending March 31 was reported at £6.2 million ($8 million), significantly lower than the £182.3 million recorded in fiscal 2022. This figure also missed the pretax profit consensus of £193 million, based on three analysts’ estimates from FactSet.

The company attributed the decrease in profit to a loss of £77.4 million resulting from acquisitions and disposals, compared to a gain of £172.8 million in the previous year.

  • Underlying operating profit, which excludes exceptional and one-off items, amounted to £177.9 million in fiscal 2023, down from £237.7 million the previous year.

Despite these challenges, Babcock remains optimistic about its future prospects, as it anticipates organic revenue growth and further expansion of underlying margins in fiscal 2024.

  • Revenue for fiscal 2023 increased to £4.44 billion compared to £4.10 billion in the previous year, surpassing the revenue consensus of £4.12 billion according to eight analysts polled by FactSet.

As a major contractor for the U.K. government, Babcock also provided insight into its future plans, stating that it currently has approximately £2.85 billion of revenue under contract as of April 30. Additionally, the company expects to secure around £700 million in framework orders for the new fiscal year.

In summary, despite the decrease in pretax profit for fiscal 2023, Babcock International Group maintains a positive outlook, with confidence in its ability to achieve organic revenue growth and expand underlying margins in the coming year.

Related posts
News

Toward a better balanced and more resilient world economy - Caribbean News Global

7 Mins read
[…] Six months ago, in this very place, I spoke of low growth and high debt. But I also spoke of resilience…
News

UN envoy underscores Libya's security struggles amid political crisis

2 Mins read
UNITED NATIONS (AP) — The new U.N. envoy to Libya has underscored the volatile security situation in the oil-rich country, with political…
News

We must know our population, says Tinubu

2 Mins read
President Bola Tinubu has inaugurated a committee to oversee Nigeria’s long-awaited national population and housing census, directing it to submit an interim…

Leave a Reply

Your email address will not be published. Required fields are marked *

72 + = 80