LONDON: British defence services group Babcock International on Tuesday posted a 57 percent rise in full-year profit, driven by strong growth at its support services and international businesses.
Babcock, which maintains Royal Navy submarines, reported an underlying pretax profit of 228.2 million pounds ($370 million) on revenues 50 percent higher at 2.89 billion pounds for the year to the end of March.
The company was expected to post an average pretax profit of 222.7 million pounds for the year, according to a Thomson Reuters I/B/E/S poll of 13 analysts.
Babcock raised the full-year dividend by 10 percent to 19.4 pence and said its order book had grown by 50 percent to 12 billion pounds over the last year.
The company, which last year bought out rival VT Group, said the integration had progressed speedily and that delivery of the 50 million pounds cost synergies was on schedule.
"In the current economic environment and as a result of the strength of the enlarged group, we believe we are well placed to benefit from new public and private sector outsourcing initiatives as well as the significant long-term growth opportunities that already exist within our markets, both in the UK and overseas," Babcock's Chief Executive Peter Rogers said in a statement.
Britain slashed its defence budget by 8 percent last year to help lower a huge budget deficit but plans to maintain spending on defence equipment with UK industry despite the cuts.
Babcock's shares, which have risen 15 percent in 2011, closed at 651.75 pence on Monday, valuing the company at around 2.4 billion pounds.
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