Babcock cautioned investors to expect impairments and charges worth £1.7bn for the full year ending 31 March following a contract profitability and balance sheet review.
Nevertheless, the “vast majority” of those charges would be one-off and non-cash affecting in nature.
Changes in the defence engineer’s operating model meanwhile were expected to result in annual savings of roughly £40m.
Asset disposals worth at least £400bn were also on the table. Management expressed caution about the 2022 financial year, because it was expected to be one of transition, yet the aim was to return the firm to strength without recourse to an equity issue.
— More to follow —
