Babcock revenues up 50%

Revenues at defence services giant, Babcock, have swelled by 50% following the acquisition of VT Group in March last year for £1.33bn.

Yet the organic growth of the firm was much more modest, accounting for just a 5% increase in revenues and operating profit in preliminary results for the year to 31 March 2011.

Revenue was £2.89bn, up 50%, while pre-tax profits grew to £228.2m, an increase of 57%.

The firm’s order book also jumped by half, expanding from £8bn to £12bn, yet debt grew far more rapidly than revenues, up to £729m from £302.3m.

Peter Rogers, Babcock chief executive, said: “The successful integration of VT Group has created a powerful operational and financial platform for us to capitalise on our increasing opportunities for growth.”