- Aerospace and defence company Babcock International said it would not pay a final dividend for its financial year ended March after reporting a fall in profit on lower revenue.

'After careful consideration the board has made an exceptional decision not to pay a final dividend for the financial year ended 31 March 2020, given the continued uncertainty around the outturn for this financial year,' Babcock said.

Underlying operating profit for the first quarter was around 40% lower than last year, and revenue was 11% lower, the company said.

Around half of this profit reduction was due to lower levels of productivity in the core business, it added.

The Magnox contract, which was terminated in 2017, South Africa and Land adjacent market businesses accounted for the other half.

Order intake in the quarter was £0.7bn.

The company said it would expect to 'see a gradual improvement in group performance from the 40% reduction in operating profit in the first quarter.'

'As with previous years, performance for the year is expected to be weighted to the second half,' it added.

At 8:02am: [LON:BAB] Babcock International Group PLC share price was -8.35p at 280.65p

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