Current global tensions and the increased defence budget have seen investors latch on to Babcock International, the second-biggest supplier to the Ministry of Defence behind BAE Systems.
The company rejoined the FTSE 100 in March after an absence of more than seven years and its £10.1 billion order backlog includes long-term contracts from NATO and a number of other countries in Europe and indeed worldwide, besides the UK.
Roughly three-quarters of that order backlog relates to defence contracts, and the other quarter hails from civil projects.
Shares are trading at a 10-year high and April’s trading update set the scene for Wednesday’s full-year results which are expected to show an 11% growth in organic sales and an underlying profit of £363 million, for a 7.5% margin, compared to £238 million and 5.4% a year ago.
Moonpig
Shares in Moonpig trade near a three-year high, thanks to management’s focus on cash flow, debt reduction, and, perhaps, a new £60 million share buyback programme.
AJ Bill analysts say a maiden dividend, alongside last December’s first-half results, may have given sentiment a boost too.
For the full year to April 2025, analysts expect 4% sales growth to £353 million and a bigger increase in adjusted pre-tax income to £64 million, compared to £46 million a year ago.
DIARY
Monday 23 June
- Full-year results from CML Microsystems
- Flash purchasing managers’ indices (PMIs) for manufacturing and services from Japan, Asia, the EU, UK and USA
Tuesday 24 June
- First-half results from Accsys Technologies and Intercede
- Trading update from SThree
Wednesday 25 June
- Full-year results from Babcock, ProCook
Thursday 26 June
- Full-year results from Moonpig
- Trading updates from Serco and Inchcape
- Final US Q1 GDP growth reading
Friday 27 June
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