In the firm’s half-year financial results, Babcock report that revenue is up 8% with the bulk of that being due to the Type 31 Frigate programme at Rosyth, Scotland.
According to the report published by the firm:
“Revenue grew by 6% led by a ramp up of work on the Type 31 frigate and warship support programmes, and growth in the LGE business. This growth more than offset the impact of the loss of our UK Royal Navy training contract last year and the year-on-year impact of COVID-19, with orders for the ventilators project in the UK contributing last year. Underlying operating profit of £38.9 million includes a £4.0 million year-on-year recovery in COVID-19 related costs compared to HY21, which was particularly impacted by site closures and lower activity levels.
The Type 31 frigate programme is on schedule following the first cut of steel for HMS Venturer at our advanced manufacturing facility in Rosyth. The new infrastructure allows for parallel build and assembly activity free from weather disruption and is nearing completion ahead of first block assembly. The investment across our Rosyth site aims to ensure shipbuilding capability and capacity to support additional future opportunities.”
David Lockwood, Chief Executive Officer, said:
“We are on-track with our turnaround strategy with around £400 million of disposals to bolster our balance sheet announced to date. We will continue to align our portfolio to best support the Group’s capital allocation priorities and future growth. The ongoing implementation of our new operating model means Babcock will be a simplified, more focused Group. We are pursuing a number of important growth opportunities, with significant contract wins in military communications, our first order for an export licence for our Arrowhead 140 frigate as part of the Type 31 programme, and an agreement for potentially significant work in Ukraine, supported by both the UK and the Ukrainian governments.
While our half year results show some recovery from the financial impact of COVID-19, we remain cautious as we are early on in our transformation and as we manage inflationary and supply chain pressures across the business and potential interruptions from COVID-19. However, the Board believes the actions we are taking will enable the Group to take advantage of the many opportunities ahead of us, leading to improved cash generation and profitability in the medium term.”
You can view the figures here.
Where’s the programme today?
Babcock recently unveiled a shipbuilding facility which will be able to build two frigates at the same time. In addition, the firm also unveiled plans to recruit 500 workers for its Type 31 frigate programme as the build of its new state-of-the-art assembly hall, known as ‘the Venturer Building’ is completed at its Rosyth site.
Measuring 147m x 62m x 42m, the Venturer Building will initially be used for the assembly of the Royal Navy’s Type 31 frigates, providing a facility that can support UK and international shipbuilding activity for decades to come.
Putting the knife into BAE, reading between the lines.
Good luck with further exports.
Nope. For the stock market after a run of terrible earnings statements. As you can read, they are selling off parts of the company to bolster profits. Not a good sign.
Reduce the borrowing required for their program of works which should flatter their balance sheet while making their margins look better.
Exactly. Less spent on servicing debt.
Sales of divisions don’t impact GP or NP in year only balance sheet.
So, as I read it, the bits of Lego are made in the “advanced manufacturing facility” and assembled in the big shed, answering the question previously posed as to why the shed is currently empty.
i suspect Babcock will crack on with this so as to be able to fulfil a big order book from foreign navies and follow up orders from mod (to grow our navy) and type32 etc.
One can but hope.
AA
They are actually describing the shed when they say “advanced manufacturing facility”. Spin at its finest.
Top of the Range shed hope they incorporate Crocodile Garage Doors 25% off market price at the moment keyfob operated not chain and pullies
Yup – spot on.
Bits of Lego made in shed next door.
Then brought to big shed.
Assembled into big new shiny toy(TM) in big shed.
= big shed 😀
To date the advanced manufacturing facility & assemble building have given the impression of being separate sheds as written. In fact the size of the assembly building seems tailored to a couple of hulls and did not appear large enough for cutting tools, storage, et al.
Could you quote the source for your stating that they are one and the same, please.
The fabrication facility is next door.
That is where the blocks are made.
It is NOT in the big shed.
That is where the brand new 3D laser cutting line and welding facility for the blocks is. How automated the weld line is, is always a debate, as some degree of hand finishing is required in complex areas.
Someone will tell me I am wrong and I will refer them to MOD Babcock press releases…….
Cheers, Supportive, makes total sense.
I endeavoured to phrased my query as diplomatically as possible.
I wasn’t having a dig at you…..your question was 100% legitimate and polite.
No dig taken; think the main thrust was evident.
Rgds
Most great British inventions came out of sheds.