Babcock says Brexit and Covid beset Royal Navy contract as profit…

In ongoing news, an illustration of Type 31 frigates, five of which are to be built by Babcock for the Royal Navy. An illustration of Type 31 frigates, five of which are to be built by Babcock for the Royal Navy.Photograph: Babcock/PAView image in fullscreenAn illustration of Type 31 frigates, five of which are to be built by Babcock for the Royal Navy.Photograph: Babcock/PABabcock InternationalBabcock says Brexit and Covid beset Royal Navy contract as profits plungeUnderlying operating profits down 19% with 2019 frigate-building programme making loss, firm reports Business live – latest updates Mark SweneyMon 22 Jun 2026 11.41 CESTLast modified on Mon 22 Jun 2026 13.02 CESTSharePrefer the Guardian on GoogleOne of the UK’s biggest defence contractors has blamed Brexit and Covid among a catalogue of problems to beset an important contract for the Royal Navy, which led its annual profits to plunge.Key players involved: BC Partners This development has significant implications for the industry, potentially influencing competitive dynamics, investment patterns, and strategic priorities across the sector. The company, which reported a 19% fall in underlying operating profits to £293.3m, said the contract it won in 2019 only had “certain escalation clauses” to protect it from cost increases related to building the frigates. Market ImplicationsForward-Looking IndicatorsContinued consolidation expected in the sectorIncreasing focus on digital transformation and innovationGrowing importance of ESG considerations Expert Commentary“Against an increasingly uncertain geopolitical backdrop, Babcock has delivered continued strategic and operational progress,” said David Lockwood, chief executive at Babcock, who is to leave the business at the end of the year. Looking AheadFor complete details on this development, refer to the original report from Guardian Business. Frequently Asked Questions