Key facts
- Babcock International reported a £140 million charge on its Type 31 frigate contract.
- Delays on the Type 31 frigate contract were exacerbated by Brexit and Covid-19.
- Babcock's underlying operating profits fell by 19%.
- The company's underlying operating profits reached £293.3 million.
- Babcock predicts sustained global defense spending.
Babcock International has announced a significant financial charge of £140 million impacting its Type 31 frigate contract. The company attributes the delays, which led to this charge, to a combination of factors including the effects of Brexit and the Covid-19 pandemic. This charge has contributed to a notable decline in Babcock's financial performance, with underlying operating profits falling by 19% to £293.3 million. Despite the setbacks on the Type 31 program and the overall profit reduction, Babcock International expresses optimism regarding the broader defense market. The company predicts that global defense spending will remain sustained, indicating a potentially stable or growing environment for future business within the defense sector.