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(Sharecast News) - Aerospace and defence firm Babcock International said on Friday that trading across the first ten months of the year had been in line with expectations, with its full-year results still set to be fourth quarter weighted.
Babcock, which kept its full-year guidance unchanged, stated it had continued to manage costs associated with Covid-19, ongoing inflation and supply chain pressures, with its new operating model on track to deliver savings of approximately £20.0m in the current financial year.
However, the FTSE 250-listed firm warned that free cash flow was expected to be "significantly negative", reflecting material cash outflows - including additional pension contributions, restructuring costs, and investments in facilities and IT upgrades.
Babcock also highlighted that it had continued to make progress on its "strategic priorities", including portfolio alignment, and said it had completed the sales of its UK Power business for £50.0m and its 15.4% stake in AirTanker Holdings for £95.0m, bringing year-to-date gross proceeds generated to £448.0m.
