November 19, 2018 / 7:19 AM / a month ago

UK's Babcock says cash cost of shoring up balance sheet not material

EDINBURGH, Nov 19 (Reuters) - British engineering firm Babcock said on Monday the net cash cost of strengthening its business would not be material, as it sought to allay doubts about its financial health for the second time in a week.

Babcock reiterated that it was exiting a series of low-margin businesses to strengthen its balance sheet. “Whilst the exact impact of these actions has yet to be determined by the Board, we do not expect the net cash costs to be material,” it said.

Doubts over its financial health pushed its shares 4 percent lower last week despite a statement insisting that full-year cash generation was as expected.

Reporting by Elisabeth O'Leary; editing by Kate Holton

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