Nuclear and National Grid work boosts Babcock

Aaron Morby 14 years ago
Share

Surging nuclear decommissioning and National Grid upgrade work helped engineering giant Babcock to more than double profits at it support services contracting arm.

Chief executive Peter Rogers said significant orders were now starting to materialise after years of investment in building Babcock’s capability in the engineering power sector.

Operating margins rose to 8.4% at the support services arm as profits more than doubled to £80m on turnover up 37% at £947m in the year to March.

Rogers said: “After some years of financial constraint, the UK nuclear decommissioning market is now starting to ease with a good pipeline of opportunities becoming visible.”

The Nuclear Decommissioning Authority achieved a positive outcome from the Government’s recent Spending Review and secured an average of £3bn funding for the next 4 years.

The contractor has won a £120m decommissioning contract at Sellafield with Bechtel running through to March 2017.

Rogers added: “The nuclear business is heavily committed to securing the Dounreay PBO contract to deliver the decommissioning of a site that we have been involved with since its original commissioning.”

Babcock said it also had high hopes for strong orders from its power transmission business, which along with Balfour Beatty dominate the sector.

Current projections indicate investment of up to £3.2bn will be required to upgrade and renew the current ageing infrastructure and provide connections for renewable generation and smarter grids to ensure that the demand for electricity can be met.

Rogers added: “National Grid, is leading this investment programme and during 2010/11 completed a rights issue, raising £3.2 billion to fund its UK capital programme which will total £22 billion over five years.

As a key partner in the National Grid’s Energy Alliance West, this increased investment will create good opportunities for the division.”

The firm’s MoD Regional Prime contracts continued to perform in line with expectations with additional works only starting to come through in the second half of the year.

Both the South West and East Prime Contracts have now been formally extended through to 2014 as the Defence Infrastructure Organisation develops the replacement Next Generation Estates contracts.

In February, Babcock won the £170m, 5 year contract to provide services to the British Forces’ establishments in Germany.

Pre-tax profits across the multi-service group slipped 11% to £115m on revenue up 50% at £2.9bn.

Latest news

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
19 hours ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
14 hours ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
19 hours ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
19 hours ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
19 hours ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
1 day ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
20 hours ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
1 day ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
2 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
2 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
2 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
2 days ago

Deck falls off huge scissor lift at Winvic site

Two men seriously injured as platform plunges to the ground
4 days ago

Weston targets Build to Rent with new division

Weston Partnerships signs first deals with asset managers and councils
2 days ago

Bouygues seals deal for £119m Cardiff college campus

Construction to start in June on two new buildings
5 days ago

£140m cash injection to speed-up flood defence schemes

Funding part of £2.65bn investment over the next two years
2 days ago

Bid race starts for £15bn schools framework refresh

DfE throws framework open to more contractors
5 days ago

Berkeley’s £600m Borough Triangle project approved

Controversial scheme features two towers of 38 and 44-storeys
5 days ago

London Mayor calls in blocked 600-bed student scheme

Refused 20-storey London PBSA block may still be built
5 days ago

HG to build 500-bed London Stratford student scheme

Work will start later this year subject to gateway 2 safety approval
5 days ago

Arrest after pedestrian death on construction site

Tragedy during site preparation works for new Wigan car park
5 days ago

British Steel threatens closure of Scunthorpe blast furnaces

Chinese owners say sectional steel and rail supplies will be maintained
6 days ago

Planning green light for Sheffield warehouse site

Existing factories to be demolished in new scheme for Rula Developments
5 days ago

New rail property company to unlock land for 40,000 homes

First four sites released in Newcastle, Cambridge, Manchester, and Nottingham
6 days ago

Drainage specialist Subscan files administration notice

Specialist employing 131 people files court notice
6 days ago

Four win Network Rail £300m engineering design deal

Eastern region deal will include design for Northern Powerhouse Rail
6 days ago

Funding go-ahead for Banwell bypass after fresh cost hike

Galliford Try contract rises £14m to £64m after final design change
6 days ago

Graham wins Southport £75m Marine Lakes Centre

Firm replaces Kier which parted ways with backer Sefton Council
6 days ago

Chancellor unveils extra £2bn capital spend a year

Construction promised a defence dividend in military base and homes upgrade work
6 days ago

McLaren confirms subcontractor team on £135m warehouse job

Work starts on TN2 Gateway site in Kent.
7 days ago

Contractor services