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UPDATE 1-Babcock says on track to achieve full-year targets
February 28, 2017 / 8:15 AM / 7 months ago

UPDATE 1-Babcock says on track to achieve full-year targets

(Adds details, background)

Feb 28 (Reuters) - Babcock International remains on track to achieve its full-year targets, the British engineering support and outsourcing company said on Tuesday, noting that order intake remained strong.

Babcock, whose financial year runs until the end of March, has been guiding towards a stronger second half, especially in its international business as it starts work on some new contracts.

“The second half of the year has continued to see trading in line with our expectations... and the board continues to expect good opportunities for growth,” Babcock said in statement on Tuesday.

The company, whose biggest client is the UK Ministry of Defence, said it had entered the fourth quarter with its order book and bid pipeline maintained at its half-year level of 30.8 billion pounds ($38.3 billion).

Britain’s outsourcing sector has been hit in recent months by uncertainty created by the country’s vote to leave the European Union, causing delays to contract decisions and forcing companies such as Capita and Mitie to issue warnings.

On Tuesday, Interserve joined other support services firms such as Carillion in pointing out that Brexit uncertainty was delaying the release of government contracts. ($1 = 0.8050 pounds) (Reporting by Esha Vaish in Bengaluru; editing by Jason Neely/Keith Weir)

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