British defence giant Babcock has secured fresh contracts to build nuclear submarines worth more than £120m.
The weapons manufacturer won two additional contracts to build and maintain new Dreadnought Class submarines, which will replace existing models that carry the nuclear Trident missiles.
It was also given a £55m contract by fellow British defence giant BAE Systems, for a Weapon Handling and Launch System (WHLS) and submerged signal ejector equipment.
Since the Russian invasion of Ukraine, and more recently, the Israeli war with Hamas in Gaza, defence firms have seen their order books increase.
BAE’s share price is up 20 per cent this year, while Babcock’s has risen more than 35 per cent.
Babcock’s share price has soared in the last year:
The new deals for Babcock came after it signed a five-year deal with the MOD to support the design of the new SSN AUKUS submarines.
Babcock CEO David Lockwood said: “Contributing our extensive expertise on the complex support submarines require is a hugely important aspect to the design of this new platform. By participating early in the programme, we will help to maximise the UK’s future defence capabilities”.
Minister for Defence Procurement, James Cartlidge said: “It is undeniable the pivotal role that British industry plays in the defence of our nation and our Allies, and I’m committed to supporting UK companies who are continuing to bolster our security whilst driving prosperity across our economy.
“The Dreadnought Class will be central to keeping our country safe and will further enhance our world-renowned submarine fleet.”
Government ministers have been urging investors to support the British defence sector over the last year, with former City minister Andrew Griffith slamming UK investors’ decision to move away from the country’s top defence firms such as BAE Systems.
Defence secretary Grant Shapps also warned insurance giant Aviva against divesting from defence companies after the insurer announced plans to exit some not meeting internal policy benchmarks.