Babcock credits VT Group for a surge in profits

DEFENCE services group Babcock International said yesterday its acquisition of rival VT Group drove a 57 per cent rise in annual profit, and that it expects outsourcing contracts to power growth this year.

Babcock, which maintains Royal Navy submarines, reported an underlying pre-tax profit of £228.2m for the year to the end of March, driven by strong growth at its support services and international businesses that offset an eight per cent cut in UK defence spending.