Babcock holds guidance as underlying profits rise

UK defence company Babcock held annual guidance as underlying profit rose in the first five months of the financial year.

In a trading update ahead of the company's annual general meeting on Thursday, Babcock said trading for the period to August 31 had been "encouraging".

"Positive momentum has continued into the first half, and the group has delivered good organic revenue growth, particularly in civil and naval nuclear, and in the land sector. Group underlying operating profit also increased compared to the same period last year, despite last year including the license fees from the Polish Miecznik (frigate programme) programme," Babcock said.

"Our expectations for the full year are unchanged and we continue to progress toward our medium-term guidance."

Reporting by Frank Prenesti for Sharecast.com