Babcock swings to H1 profit as turnaround efforts take shape

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Babcock swung to a first-half profit underpinned by costs as the defence company continued to make progress on its turnaround strategy.

For the six months ended 30 September, pre-tax profit was £58.8 million compared with a loss of £811.6 million year-on-year, while revenue rose 8% to £2.22 billion.

Contract backlog rose to £10.9 billion from £9.4 billion year-on-year following signing of future maritime support maritime programme.

'We are on-track with our turnaround strategy with around £400 million of disposals to bolster our balance sheet announced to date,' the company said.

Looking ahead, the company kept its full-year outlook unchanged and said it as new operating model was 'on track to deliver savings of approximately £20 million in this financial year.'