Babcock says Brexit and Covid beset Royal Navy contract as profits plunge

Underlying operating profits down 19% with 2019 frigate-building programme making loss, firm reports

One of the UK’s biggest defence contractors has blamed Brexit and Covid among a catalogue of problems to beset a key contract for the Royal Navy, which led its annual profits to plunge.

Annual profits at Babcock International fell by almost a fifth in the year to the end of March, as the firm reported a £140m charge on its contract to build five Type 31 frigates for the Royal Navy.