Babcock hit by frigate changes

UK defense contractor Babcock International has reported a £140 million profit hit resulting from design changes and necessary reworks on the Royal Navy's new Type 31 frigates.

The company is currently constructing five of the vessels at its Rosyth shipyard in Scotland as part of a major naval modernization program.

The financial setback underscores the complexities and rising costs associated with large-scale military procurement during a period of geopolitical instability.

Despite the charge, Babcock remains committed to the delivery schedule, while investors have reacted cautiously to the impact on the company's annual earnings.