Images released by Babcock in February 2024 showing progress being made on the hullform and superstructure of the future HMS Venturer at its shipyard in Rosyth, Scotland. (Babcock International)
UK shipbuilding and services group Babcock has been forced to cut its profit guidance after reporting a GBP90 million (USD117 million) loss on the UK Royal Navy's five-ship Type 31 Inspiration-class general-purpose frigate programme.
Revealing the loss in a 17 July results update for the fiscal year (FY) ending 31 March 2024, the company said that the deterioration would be fully recognised in its FY 2024 accounts, expected to be announced on 26 July. It also disclosed that the Type 31 programme has been restructured following a detailed operational review “to protect the in-service date”.
Babcock – leading the Team 31 industry consortium with Thales, OMT, and BMT – was awarded a GBP1.25 billion design and build contract by the Ministry of Defence (MoD) for five frigates based on the Arrowhead 140 design in November 2019. The class is being built at a new shipbuilding facility in Rosyth, with the first-of-class planned to enter service in 2027. All five ships are due for delivery by the end of 2028.
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