As a recuperating basket case in an unpredictable industry with huge chunks of cash flowing in and out, it is prudent to keep a close eye on progress at Babcock International. It is the UK’s only nationally owned civil nuclear contractor and a significant supplier to the aerospace and defence sectors, making weapons, warships and submarine launch systems. It owns the Devonport and Rosyth dockyards.
Tuesday’s half-year results were notable for swathes of bandages and sticking plaster, but the crutches have been put to one side for now. Revenue was 8.2 per cent higher at £2.22 billion, a dramatic turnaround in statutory operating profit from a £785.3 million loss to a £75.4 million positive. These figures have been restated to reflect more conservative accounting policies.
