Shares in engineering outsourcer Babcock International (BAB) were up 4 per cent as the group defied economic gloom by reporting resilient trading in the first half to end-September. Investors who followed our 'buy' advice will also have cheered when management said that conditions were buoyant across all markets, and a stable order book at £13bn includes over 90 per cent of the current year's forecast revenues.
Buoyant trading has also been generating plenty of cash and Babcock detailed a further reduction in net debt at the halfway stage. Broker Peel Hunt sees scope for more rapid debt reduction than forecast, estimating year-end net debt at £559m. The engineering outsourcing group has also reorganised its divisions, moving defence-related infrastructure operations from support services to defence and security.
