Nov. 25, 2020, 2:39 a.m. EST

Babcock International profit falls

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By Anthony O. Goriainoff

Babcock International Group PLC said Wednesday that profit fell in the first half of fiscal 2021 after booking higher costs, and that its performance in the second half is expected to be more pronounced.

The U.K. engineering company, a major contractor for the U.K. government, said that for the six months ended Sept. 30, pretax profit was 55.3 million pounds ($73.9 million), compared with GBP152.5 million for the first half of fiscal 2020.

Underlying pretax profit--a key metric for the company which strips out exceptional and other one-off items--was GBP98.9 million, compared with GBP202.5 million in the same period last fiscal year.

Revenue fell to GBP2.11 billion from GBP2.19 billion in the year prior.

The company said it isn't declaring an interim dividend given continued uncertainty stemming from the pandemic.

"The latest forecast includes improved operating performance during the second half of fiscal 2021 and further improvement during the following year," the company said.

The company still didn't provide financial guidance for fiscal 2021 as there is elevated uncertainty around the effect of the pandemic in its markets, including government and customer responses, it said.

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