Defence engineering giant Babcock International Group said it is in on track for growth as global conflict continues to drive demand for defence equipment.
On Tuesday (November 14) the group, which runs Plymouth’s Devonport Dockyard and employs more than 5,000 people in the port city, posted results for the six months ended September 30 2023.
Babcock posted underlying profit up 27% to £154m for the period, helped by its contract to build frigates for Poland, and after it won contracts in France and Australia. Revenue was up 2% to £2,177m, while the group saw a organic growth of 18%, including major infrastructure programme growth.
READ MORE: {}
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
Earlier this year the group, which designs and manufactures naval ships and weapons handling systems as well as supporting Britain's nuclear submarines, announced a turnaround plan, which bosses said saw "increased levels of engagement and satisfaction".
This has coincided with the defence giant seeing increased demand for military kit for the war in Ukraine. Babcock's contract to support 海角视频-gifted platforms to Ukraine now operating at full capability.
On Friday (November 10) Babcock signed a four-year £750m contract with the 海角视频 Ministry of Defence’s (MOD) Submarine Delivery Agency (SDA) to deliver the infrastructure required to support and sustain the 海角视频’s submarines for decades to come.
David Lockwood, chief executive at Babcock International Group said: "We have made a strong start to the year, as we continue to build on the exciting momentum we see across the Group. We are delivering for our customers, reducing risk and positioning for growth through a number of significant new global teaming agreements.
Most Read
"We have a clear capital allocation policy, which is providing the Group with the flexibility it needs to capture the growing number of value creation opportunities we see ahead. We are reinstating our dividend following a four-year hiatus, reflecting our confidence in the future, and our expectations for the full year remain unchanged."
Babcock had said in July it would reinstate its dividend after a four year hiatus and on Tuesday (November 14) announced it would pay out 1.7 pence per share, expected to be around a third of the full-year sum.
For the full-year, Babcock said it was on track to meet its target for organic revenue growth and underlying operating margin expansion. Shares in Babcock have risen 45% in the year to date.