LONDON (Reuters) -British engineering company Babcock (LON:BAB) stuck to annual guidance for growth on Tuesday as the global threat environment continues to drive demand for defence equipment and maintenance work.
Babcock posted underlying operating profit up 27% to 154 million pounds ($189.3 million) for the six months to the end of September, helped by income from its contract to build frigates for Poland, and after it won contracts in France and Australia.
A turnaround plan for the company, which designs and manufactures naval ships and weapons handling systems as well as supporting Britain's nuclear submarines, has coincided with a pick-up in demand for military kit due to the war in Ukraine.
Babcock had said in July it would reinstate its dividend after a four year hiatus and on Tuesday announced it would pay out 1.7 pence per share, expected to be around a third of the full-year sum.
For the full-year, Babcock said it was on track to meet its target for organic revenue growth and underlying operating margin expansion. Shares in Babcock have risen 45% in the year to date.
($1 = 0.8135 pounds)