Defence contractor Babcock sees profits spiral due to war in Ukraine

Published by

Peter Davison

Engineering company Babcock has reported a 17 per cent increase in annual profits

Engineering company Babcock has reported a 17 per cent increase in annual profits – thanks to the war in Ukraine.

The firm – which has sites in Warminster, Cheltenham, Bristol, Tewkesbury, Taunton, and Devonport – makes naval ships and weapons handling systems as well as supporting Britain's nuclear submarines.

Overseas clients include Australia, Poland, Canada, and France.

Reporting revenues of £4.4 billion, up eight per cent year on year, and profits of £278 million, the company said the war in Ukraine had meant countries are keen to ensure their militaries are battle-ready, and enhanced with improved features.

"In a world of significant instability, national security has never been more important," said CEO David Lockwood.

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"With defence making up two-thirds of the group, the combination of capability, availability and affordability we offer is increasingly relevant.

"I'm excited about the momentum building across the business, and that confidence is reflected in our expectation of continuing cash-backed profitable growth."

Peter Davison

Peter Davison is deputy editor of The Business Magazine. He has spent his life in journalism – doing work experience in newsrooms in and around Bristol while still at school, and landing his first job on a local newspaper aged 19. By 28 he was the youngest newspaper editor in the country. An early advocate of online news, he spent the first years of the 2000s telling his bosses that the internet posed both the biggest opportunity and greatest threat to the newspaper industry and the art of journalism. He was right on both counts. Since 2006 he has enjoyed a career as a freelance journalist. He lives in rural Wiltshire with one wife, two children, and three cats.