LONDON (Reuters) - British defence company Babcock (LON:BAB) said on Wednesday its expectations for another year of growth were unchanged and it continued to build momentum to achieve its medium-term guidance, helped by the global threat environment.
Ahead of an investor day at its Devonport base where it maintains and repairs Britain's submarines and warships, Babcock said it was on track to meet forecasts for organic revenue growth, underlying operating margin expansion and positive cash flow in the current year.
The group, whose biggest customer is Britain but which also has contracts with Australia, France and Poland, also said it was confident of meeting guidance for underlying operating margins of at least 8% in the next three to five years.
CEO David Lockwood's turnaround plan for the company has coincided with the Ukraine war, which has driven demand for Babcock's military kit such as naval ships and weapons handling systems.
For the 12 months to the end of March, analysts expect Babcock to post operating profit of 290 million pounds ($365.98 million).
($1 = 0.7924 pounds)