You are here: Home - Investing - Experienced Investor - News -

Share Centre stock of the week: Babcock International

Written by:
Graham Spooner, investment research analyst at The Share Centre, picks Babcock International as stock of the week.

A FTSE-100 listed engineering support services company, Babcock International provides outsourcing services to government and private sector customers and works extensively with the UK armed forces.

Babcock has a diversified product base with a large international presence, and in the long term there are growing hopes for more opportunities in the nuclear area. Management are keen to highlight its links to the navy and long term contracts, alongside new markets, potential for more outsourcing and a recovery in certain areas of defence spending.

Investors should be aware that interim results in November reported a 7% rise in profits to £146.3m, on the back of a 5% increase in revenue to £2.04bn. The dividend was raised by 10% to 6.05 pence. Full year results are expected to be in line with expectations.

The group expect to benefit from the new defence spending review, potentially adding to an already strong order book.. The shares now trade on around 13.2 times 2017 earnings, offering an improving dividend, along with solid growth prospects. We remain happy to suggest investors buy for the long-term.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Pension-led funding creeps up to £25m

Pension-led funding (PLF) was worth £25m in total in 2014, with the average amount raised at £70,257, figures from Nesta’s Understanding...