Defence firm Babcock International PLC (LSE:BAB) rose over 6% after announcing operating cash flow had outdone expectations for the first five months of the year.
Underlying operating profit looks set to increase come the firm’s November interims on the back of higher revenue, FTSE-250 listed Babcock said in a statement ahead of its annual general meeting.
“Overall, including the impact of contract phasing in marine and further growth in nuclear infrastructure programmes, organic revenue growth is offsetting the impact of disposals in the prior year,” Babcock added.
Babcock sold its aerial emergency services businesses and its civil training last year in a bid to stabilise following several tough years of trading, which had seen layoffs in 2021.
Shares climbed by 6.1% to 412.2p.