Babcock International PLC (LSE:BAB) shares climbed to their highest in almost seven years as the defence contractor reported growth in all four divisions in the year to March, ahead of expectations.
Underlying operating profit rose 17% to £363 million on revenue of £4.83 billion, which was up 11% on an organic basis at constant currencies.
Operating margin improved to 7.5%, supported by solid performances across the group and a one-off £5 million benefit in the Marine division.
"In an uncertain world, we continue to see momentum across the business," said CEO David Lockwood. "This has driven strong performance in all four of our divisions in the fourth quarter."
Babcock reported a £10.1 billion contracted backlog at year-end, up from £9.5 billion at the half-year. Notable contract wins included an €800 million military air training deal in France and a £1 billion five-year extension for UK army land equipment support.
The company also finalised long-term funding arrangements for its three main pension schemes, reducing annual deficit repair payments from £40 million to £20 million over the next six years.
Shares in Babcock rose 4% to 780p, their highest since the summer of 2018.