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Babcock's struggles on the cash flow front

The engineering contractor is aiming to reinforce its balance sheet and reduce net debt
Babcock's struggles on the cash flow front

 

  • Negative free cashflow in prospect
  • Reducing net debt ratio a priority

Babcock (BAB) booked a £1.7bn net income loss for FY2021, driven by £1.3bn in impairments of goodwill and acquired intangibles, though it’s worth noting that gross profits have fallen to £26m from £487m in the prior year.

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