Babcock International Group has delivered a steady trading update for the first five months of its financial year, confirming that performance is in line with expectations.
In the update released ahead of its Annual General Meeting, the defence and engineering firm reported growth across key sectors, particularly in its civil and naval nuclear operations and its land business.
The company highlighted strong organic revenue growth and an increase in underlying operating profit, despite the absence of last year’s one-off license fees from the Polish MIECZNIK programme.
Babcock stated that its full-year outlook remains unchanged, as it continues to progress toward its medium-term goals.
Notable Business Developments
Several key developments were highlighted in the update:
- AUKUS Submarine Programme: Babcock launched H&B Defence, a joint venture with HII, to support Australia’s nuclear-powered submarine programme under the AUKUS agreement. The venture will focus on building sovereign capabilities in areas like nuclear infrastructure and submarine decommissioning.
- Devonport Dock Regeneration: The reopening of 9 Dock at Devonport follows a significant regeneration project. The facility, now critical for the UK’s Continuous At Sea Deterrent, will support the £560 million maintenance programme of HMS Victorious, extending the submarine’s operational life.
- Skills Development in Nuclear Programmes: A new engineering and nuclear skills building was inaugurated at City College Plymouth to help train Babcock’s workforce in UK nuclear projects. The facility was opened by the Minister of State for Defence Procurement and Industry.
- Miecznik Frigate Programme: Babcock has extended its contract with Poland’s PGZ SA to support the Miecznik frigate programme through to 2031, ensuring the delivery of three ships under the deal.
While the company reported strong demand in its core defence markets, Babcock’s full-year expectations remain unchanged. The Group’s half-year results are scheduled to be released on 13 November 2024, at which point more detailed performance figures will be provided.
