ROSYTH dockyard operator Babcock International has recorded a big rise in profits as it strengthened its position as the leading provider of support to the Royal Navy.
The firm also said it "remains confident" that the Ministry of Defence (MoD) will proceed with its future aircraft carriers project, which will see the largest vessels ever built for the Royal Navy being assembled at Rosyth.
Announcing a record se
t of results, Babcock said today that pre-tax profit increased by 48 per cent to £84.6 million in the year to the end of March, while revenues surged by 57 per cent to £1.5 billion. It said that a series of major contract wins are continuing to underpin its growth. Peter Rogers, Babcock's chief executive, said: "This has been another extremely successful year for Babcock that demonstrates our commitment to delivering real value for shareholders.
"We have achieved another year of strong organic growth while we have continued our successful track record of acquisitions significantly strengthening our position as the leading provider of support to the Royal Navy and creating a strong platform for growth in the civil nuclear market.
"The markets in which we operate remain attractive with good long term growth prospects.
"We have established leading positions in all our markets and developed strong relationships with our customers."
During the year, Babcock acquired Devenport Management Limited (DML) and International Nuclear Solutions (INS), which it said added £408m to the group's turnover and £38.8m of operating profit. In its marine division, where it owns both Rosyth and Devenport dockyards and manages Devenport and Clyde Naval Bases, revenues powered ahead by 191 per cent to £633m, while operating profits increased by 208 per cent to £68.7m.
It said it has had a successful year securing contracts for major maintenance packages for HMS Sutherland and for the Royal Navy's largest ship HMS Ocean, while work has also been secured on a range of other Royal Navy vessels for Rosyth and Devonport.
The detailed design of vessels for the CVF (future aircraft carriers) project is already taking place at Rosyth, where the vessels would also be assembled.
A civil engineering contract for modifications to the dock area at Rosyth to equip it for the job was signed in February. The work is to be paid for by the MoD.
The full article contains 398 words and appears in Edinburgh Evening News newspaper.
