Many of our shareholders have been long-term investors in Babcock and have seen the value of their investment rise significantly over recent years, benefiting as our company has grown in scale and financial security. The largest proportion of investors in Babcock, just under half, are identified as Growth Investors – investors who are seeking to grow their capital as we grow our earnings. Those who were fortunate enough to be invested in Babcock in 2000 have seen earnings per share grow from 0.55 pence to 33.4 pence in the 2007/08 financial year.
However these investors are looking forward. They have chosen Babcock because they are confident we can meet the growth in revenues and profits predicted by the market and return money to them in the form of steadily increasing dividends. Their confidence is underpinned by the strength of our orderbook and the visibility of future earnings this gives as well as our ability to generate strong cash flows.
The confidence investors have in Babcock is supported by a number of other things:
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Our open and honest approach to communication
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Our commitment to ‘tell it as it is’ and the consistency with which we have met or exceeded growth targets
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The clarity of our strategic plan and the competitive advantage this has given us
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Our balanced approach to risk management
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Our effective governance structures
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The strength of our management teams
Everyone has a part to play in ensuring we continue to focus on these issues and deliver strong financial results. Investor confidence in Babcock has taken a long time to build and, by ensuring we continue to do the important things well and don’t disappoint, it will continue to be enhanced in the future.