Babcock’s boss yesterday hailed the reviving enthusiasm for Britain’s arms industry as the firm reported a rise in profits.
The defence giant’s chief executive David Lockwood said working in the sector was something to ‘tell your mates in the pub’ after the war in Ukraine and rising tensions around the world made Britain’s reliance on arms increasingly crucial.
Shares have more than doubled over the past 12 months and it made a return to the FTSE 100 in March after an absence of more than seven years.
Lockwood told the Mail that ‘being back in the FTSE 100, receiving largely positive press commentary and with society seeing defence in a positive light, it is easier to tell your mates in the pub that you work for Babcock’. He added that the company had invested into being a ‘people business’ through offering all employees free shares, training and wellbeing initiatives.
‘This isn’t wokeism,’ he said. ‘We get a pipeline of talent if we are attractive to all of society.’
Lockwood added he believed the Government’s commitment to defence spending was ‘secure’ despite strains on the public finances. Profits rose by nearly a third to £226.3m over the six months to September 30.
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Lockwood said that there was ‘no shiny bauble’ in the half-year results but that ‘everything has got better everywhere’ – including margins and cash generation.
Shares yesterday wobbled early as some investors were disappointed by the lack of a profit upgrade, but ultimately closed up 1.8 per cent, or 20p, at 1150p.
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