Babcock Makes Huge Profit Despite £140m Frigate Cost Hike

Babcock makes huge profit despite £140m frigate cost hike

'We achieved strong underlying growth, improved margins and robust cash generation'

Babcock predicts global government defence spending spree after hit to profit

Babcock said it had suffered a £140m financial hit due to delays in a contract with the Royal Navy but reiterated its financial targets for the next year, predicting high spending as global governments plough cash into defence. Profit before tax slumped to £267.2m from £339.4m in the prior year after problems with its Type 31 frigate contact led to a £140m hit. Costly rework and design changes also damaged revenue in the final quarter, as it sli…