Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Babcock International Group    BAB   GB0009697037

BABCOCK INTERNATIONAL GROUP

(BAB)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryAll NewsPress ReleasesOfficial PublicationsSector news

Babcock shares slide as virus dents engineering group's profit

share with twitter share with LinkedIn share with facebook
08/04/2020 | 03:10am EDT

Shares in British engineering group Babcock slid as much as 16% on Tuesday after underlying profit slumped by two fifths in the first quarter, hit by higher costs resulting from the coronavirus-induced downturn.

While sales from the company's core business grew slightly, it was not enough to offset writedowns in the oil and gas aviation unit, contract delays and the mounting cost of safety measures needed to contain the virus.

Babcock undertakes public and private contracts in the defence, emergency services and civil nuclear markets. It counts Britain's Ministry of Defence as its biggest customer.

The company's shares, which have halved in value this year, were down 11.8% at 254.7 pence by 0857 GMT. They earlier touched their lowest in about 14 years after Babcock said it would cancel the final dividend for its financial year ended March 31, having previously deferred the decision.

Chairwoman Ruth Cairnie said dividends would be reinstated as soon as possible.

"We continue to deliver critical programmes for our customers but our financial performance is being impacted by the challenges created by COVID-19 ... We are not giving detailed financial guidance for the year at this stage," she said.

Jefferies analysts cut their price target by 90 pence, saying Babcock's 11% drop in organic growth was in line with its forecast, but the hit to profit was "more substantial".

Fellow engineering firm Senior swung to a loss and shelved its interim dividend on Monday.

Babcock's aviation business, which spans its three main operations, was hurt by fewer flying hours and weakness at the oil and gas aviation unit which transports workers to rigs. Defence, however, held up.

Peel Hunt analysts said they were keen to see how management, under a new chief executive and finance chief, would reshape Babcock's battered operations.

By Pushkala Aripaka

Stocks mentioned in the article
ChangeLast1st jan.
BABCOCK INTERNATIONAL GROUP 5.13% 225.4 Delayed Quote.-65.94%
LONDON BRENT OIL 0.12% 41.78 Delayed Quote.-37.14%
SENIOR PLC -1.61% 42.86 Delayed Quote.-74.81%
WTI -0.42% 40.091 Delayed Quote.-34.31%
share with twitter share with LinkedIn share with facebook
All news about BABCOCK INTERNATIONAL GROUP
09/16BABCOCK INTERNATIONAL : Rosyth facility completes work package on Pacific Egret
AQ
08/17BABCOCK INTERNATIONAL : given special accolade for extraordinary engineering ser..
AQ
08/04Babcock shares slide as virus dents engineering group's profit
RE
07/13BABCOCK INTERNATIONAL : UK Government grants Babcock green light for GBP2.1m 'AW..
AQ
07/13BABCOCK INTERNATIONAL : UK Government grants Babcock green light for £2.1m &lsqu..
PU
07/10BABCOCK INTERNATIONAL : Dounreay decommissioning contract
PU
07/07BABCOCK INTERNATIONAL : University of Exeter student project with Babcock Intern..
AQ
07/01BABCOCK : Work to begin on GBP4.1m world-leading composite test centre FASTBLADE
AQ
07/01BABCOCK INTERNATIONAL : MEH milestone at Hinkley Point C
PU
06/22BABCOCK INTERNATIONAL : LGE shortlisted for prestigious engineering innovation a..
PU
More news
Financials
Sales 2021 4 429 M 5 632 M 5 632 M
Net income 2021 165 M 209 M 209 M
Net Debt 2021 1 386 M 1 763 M 1 763 M
P/E ratio 2021 6,52x
Yield 2021 5,02%
Capitalization 1 139 M 1 450 M 1 449 M
EV / Sales 2021 0,57x
EV / Sales 2022 0,54x
Nbr of Employees 32 819
Free-Float 98,8%
Chart BABCOCK INTERNATIONAL GROUP
Duration : Period :
Babcock International Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BABCOCK INTERNATIONAL GROUP
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 351,23 GBX
Last Close Price 214,40 GBX
Spread / Highest target 194%
Spread / Average Target 63,8%
Spread / Lowest Target 28,3%
EPS Revisions
Managers
NameTitle
David C. Lockwood Chief Executive Officer & Director
Ruth L. Cairnie Chairman
Franco Martinelli Group Finance Director & Executive Director
Jon Hall Managing Director-Technology
David Omand Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
BABCOCK INTERNATIONAL GROUP-65.94%1 379
VINCI SA-28.22%46 431
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION LIMITED-9.43%31 158
FERROVIAL, S.A.-18.95%18 704
CHINA RAILWAY GROUP LIMITED-8.59%18 402
LARSEN & TOUBRO LIMITED-31.54%16 157