Babcock International (BAB) has moved its naval nuclear division out of its marine sector and combined it with its civil nuclear business Cavendish Nuclear to create a single nuclear segment.
The defence contractor's UK naval nuclear activities include base operations at Faslane and Devonport, and submarine maintenance and dismantling. Civil, meanwhile, performs decommissioning, maintenance and new-build services, including work on the Hinckley Point C nuclear power station. The new structure will be led by Simon Bowen, Babcock’s head of nuclear. The decision “optimises alignment with our primary customers in both the defence and civil nuclear areas”, the business says. Restated results for the defence contractor’s full year to March 2019 transfer £620.6m in revenues from Babcock’s marine division into nuclear.
Babcock is using its capital markets day to set out an ambitious range of medium-term targets. It aims to become the largest aerial emergency services provider in the world and British Army's “strategic readiness partner”. Achieving these goals, it hopes, will help it generate around £1.4bn of free cash flow over the next five years.
Last month, analysts at Peel Hunt reduced their full-year forecast 2020 pre-tax profits for Babcock from £489.9m to £454.9m and EPS from 78.9p to 73.4p.
