Babcock Swings to Loss, Defers Dividend Decision

The board of Babcock International has informed investors that it is considering deferring a decision on whether to maintain the full, interim or special dividend.

The board is seeking to build on the strength of the company’s group, which, it says, “is one of the UK’s most successful infrastructure investment businesses and has a robust track record of growth in value”.

The company confirmed yesterday that the executive directors have agreed to recommend an interim dividend of 31p per share, a quantum unchanged since 2012.

This reflects the group’s progress, growth and opportunity.

Babcock also says that it will remain a shareholder in Babcock Infrastructure Corporation, its joint venture with Babcock Group, after purchasing a further 1.05 million shares.

Earlier today the Babcock board saw an increase in shareholder support for the company’s executive remuneration policy.

The remuneration policy called for a reduction in the ratio of director remuneration to earnings per share, effective for the 2013 to 2018 financial years.

Under the remuneration policy the ratio will fall to 40% from 44% in the current financial year.

A mandatory vote at the company’s annual general meeting saw shareholders overwhelmingly approve the policy.

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