Business
Trading update
Trading update.
About this update from Babcock International Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7819L\n Babcock International Group PLC\n 15 January 2021\n \n \n \n \n 15 January 2021 \n \n \n Babcock International Group PLC (Babcock or the Group)\n \n \n Trading update\n \n \n \n \n \n Babcock, the aerospace and defence company, issues the following trading update for the first nine months of the financial year ending 31 March 2021.\n \n \n \n \n \n Group trading \n \n \n Trading in the third quarter saw a continuation of trends in the first half of the year, with weakness in our civil aviation businesses and a negative impact from COVID-19.\n \n \n \n \n \n Underlying revenue in the nine months year to date (YTD) was £3,399 million (9M 2020: £3,574 million), down 3% on last year excluding disposals and FX. Underlying operating profit in the nine months YTD was £202 million (9M 2020: £320 million), down 34% excluding disposals and FX, with a negative impact from civil nuclear insourcing, COVID-19 and civil aviation.\n \n \n \n \n \n Order intake YTD was £3.1 billion with the Group's order book standing at £16.8 billion at 31 December 2020 (31 March 2020: £17.6 billion).\n \n \n \n \n \n Balance sheet\n \n \n The Group's net debt1 (excluding lease obligations) at 31 December 2020 was £1,207 million, a reduction of £255 million compared to 31 December 20192. Although this position is higher than that reported at 30 September 2020 of £871 million, it is consistent with the average net debt for the first nine months of this financial year of £1,222 million3.\n \n \n \n \n \n Review of contract profitability and balance sheet\n \n \n We have recently started a detailed review of our balance sheet and contract profitability. Early indications suggest that there may be negative impacts on the balance sheet and/or income statement for current and/or future years. This review is being supported by an independent accounting firm and the outputs will be reviewed by our auditor (PWC), Audit Committee and Board prior to the publication of our audited results for the year ending 31 March 2021 expected in May.\n \n \n \n \n \n Outlook\n \n \n Uncertainty remains around the outturn for this financial year, especially given that our fourth quarter is historically our strongest and that the COVID-19 situation has worsened in most of our markets. Given this uncert...