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:
- Our open and honest approach to communication
- Our commitment to 'tell it as it is' and the consistency with
which we have met or exceeded growth targets
- The clarity of our strategic plan and the competitive advantage
this has given us
- Our balanced approach to risk management
- Our effective governance structures
- 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.