British engineering company Babcock said it was on track for growth this year after first-half profit jumped 19 per cent, helped by governments spending more on its shipbuilding and nuclear servicing capabilities.
Babcock, which maintains Britain’s naval fleet, builds warships and provides weapons systems, said on Friday it was chasing new contracts which could help drive further growth.
"We are on track to achieve our expectations for the full year and are pursuing exciting opportunities for sustainable growth and margin expansion, both in the UK and internationally," CEO David Lockwood said in a statement.
Babcock is reported to be in the running to build new frigates for the Danish and Swedish navies, and to be partnering with Saab for a Polish submarine contract.
For the six months to September 30, Babcock posted underlying operating profit of £201.1 million ($263 million), up on the £168.8 million it made in the same period last year, putting it on track to meet a consensus forecast for annual profit growth of 11 per cent.
In June, Babcock upgraded its medium-term operating margin guidance, forecasting it would capture more business as Britain and other European nations lift their defence spending.
Shares in Babcock have soared 126 per cent in the year to date, outperforming the FTSE 100 index which is up 17 per cent.
(Reporting by Sarah Young; Editing by Kate Holton)
