British defence contractor Babcock said it expects to record a significant loss in the financial year 2021/22, due to the impacts of Covid-19 on the global economy.
The London engineering company said its efforts to manage its costs, in the face of supply chain pressures and soaring inflation, would deliver savings of £20m this financial year.
However, the firm said it expects to post a loss this financial year, as it said its results so far – for the first ten months of FY21/22 ending in March 2022 – sit in line with expectations.
Babcock said additional pensions contributions, restructuring costs, IT upgrades and investment in new facilities were responsible for the losses.
The expected losses come after Babcock made a series of deals through which it raised £448m, by selling off stakes in four separate companies.
The deals come as Babcock this month acquired the remaining 50 per cent stake in its Australian joint-venture, Naval Ship Management (NSM).