Babcock profit leaps to £200m

HIKE IN DEFENCE SPENDING SEES 19% RISE IN FIRM'S OPERATING PROFIT

- By WILLIAM TELFORD

A HIKE in defence spending and Plymouth’s key role in safeguarding the UK have helped Devonport Dockyard operators Babcock International Group Plc see its operating profit jump to £201.1m.

The company highlighted work at its Plymouth facility for the 19% rise in operating profit, after revenue also increased 7% to £2,538.6m for the six months to the end of this September.

Overall, the profit after tax was £142.5m - up by nearly £24m on the total for the six months to September 2024. Basic earnings per share rose to 33.7p from 25.7p, and the interim dividend per share increased by 25% to 2.5p.

The company maintained its full-year expectations, with a contract backlog of £9.bn, and saw net debt excluding leases reduced to £55.8m.

The FTSE 100 company said half-year highlights included the reopening of Devonport’s 15 Dock facility, marking the return of twin streaming submarine maintenance capability. It also secured a £114m three-year contract to prepare for the first nuclear defueling of a decommissioned Trafalgar Class submarine in more than 20 years.

Babcock said the success came as governments continue to focus on defence and security as geopolitical uncertainty continues.

The half-year results document, published for investors, said: “There is a clear recognition of the need for investment in defence capabilities, energy security, increased sovereignty and industrial resilience.”