Full Year 2024 Babcock International Group PLC Earnings Call Transcript
Key Points
- Strong financial performance with a 34% increase in underlying operating profit and a 40 basis point improvement in margins.
- Significant progress in cash flow, with free cash flow reaching GBP160 million and operating cash conversion at 98%.
- Reduction in net debt to GBP211 million, resulting in a gearing ratio of 0.8 times.
- Reinstatement of the dividend, with a first full-year dividend of 5p.
- Strong organic revenue growth of 11%, marking the second consecutive year of double-digit growth.
- Type 31 program incurred a significant charge of GBP90 million, impacting overall profitability.
- Potential risk of reversal in working capital, particularly on large programs, estimated at up to GBP70 million.
- Continued investment in infrastructure and systems leading to capital expenditure outstripping depreciation.
- Challenges in the Marine sector with flat revenue growth and increased overhead expenses.
- Potential political and operational uncertainties related to the AUKUS program and the upcoming UK general election.
Just start, has a recording on. Three, two, one, action. Right, well, welcome to our full year results. Obviously, a bit trailed last week with the -- with pre-announcement, but a lot more detail here, a lot more to get your teeth into. Before I put any slides up, I think it's really important to make sure we get the right balance in this presentation.
I think when I look back over four years in this company, in the first year, we had a spike just because we managed to avoid a rights issue. That was kind of territory we're in. Now we're in a completely different territory. And hopefully what we'll lay out through, it's not just the journey, but kind of where we are set rep on today, but also the -- what I think is a tremendously exciting feature for what is becoming one of the world's most important defense companies.
So we've made really good progress towards our medium term guidance. If you take the three cash, we've been well ahead for three years, our growth is well ahead for three years.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
