Global military tension lifts defence contractor's profits

BABCOCK had a major jump in full-year profit and revenue as heightened tensions propped up defence contractors.

- By Guy Taylor

Operating profit increased by 17% to £363million on an underlying basis while revenue grew by 11%to £4.8billion. Net debts fell to £373m including leases, from £435m.

Shares climbed by more than 4% in early trading as investors continue to buy in to the defence boom. The mix of rising global geopolitical tension and a more inward US has seen defence stocks soar.

Babcock won a £684m deal with the French navy in January for air training solutions and in March it secured a five-year extension to a £1bn land equipment support deal with the British Army.