UK's Babcock recoups early losses, FY operating profit misses view
** Shares in Babcock International BAB.L fall as much as 4.4% to 515p in early trade, last up 0.8%
** British engineering co misses market expectations for annual underlying operating profit
** Posts underlying oper profit of 237.8 mln pounds ($308.8 mln) vs analyst expectations of 292.8 mln pounds, as per LSEG data
** Underlying profit includes 90 mln pounds charge from a UK government contract signed in 2019 for five ships, fully recognised in FY24
** "We acknowledge that some investors might be troubled by a second charge on the Type 31 in two years," say JPM analysts referring to the contract
** JPM says investors will look for reassurance that BAB's management does not expect further charges on the programme
** Excluding contract charges, underlying EBITDA of 328 mln pounds above consensus
** Stock has risen ~34% so far this year
($1 = 0.7700 pounds)
Reporting by Prerna Bedi in Bengaluru
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