Defence contractor Babcock International, which has bases in Tewkesbury and at Gloucestershire Airport, has posted results to show it is making "excellent progress" - despite a tumble in statutory operating profit.

The company posted £4.4bn revenue for the year to March, which signalled an 8 per cent climb on the previous 12 months.

However, statutory operating profit was £45.5 million, spelling a drop of £226.8m.

David Lockwood, CEO, said: "We've made excellent progress this year, with better-than-expected cash generation, margin expansion and double-digit revenue growth. When we started our transformation, my first goal was to stabilise and strengthen the balance sheet and I'm delighted to say that work is complete. Babcock is now a higher-quality, lower-risk and more predictable business, with a clear focus on execution.

"In a world of significant instability, national security has never been more important. With defence making up two-thirds of the Group, the combination of capability, availability and affordability we offer, is increasingly relevant. I'm excited by the momentum building across the business, and that confidence is reflected in our expectation of continuing cash-backed profitable growth, and reintroducing a dividend in FY24."

In a video address on the latest results, Mr Lockwood added that he was "proud".

He said: "The numbers in the end are the results of the activities of our 26,000 people, supporting customers in times none of us thought we would see again. Threats in Asia, threats in Europe; a wholly dynamic environment for them to operate in.

"They have really satisfied their customers, they have supported Ukraine, they have supported acitivities in Australia and around the world. It has been a truly accomplished year."

Employee efforts has paved the way for double-digit growth, high cash conversion, and strong profitability, he added, despite the Type 31 frigate dispute with the MOD over increased construction costs.

He added: "All of this is really positive evidence that the company has now turned the corner and is now going forward with real confidence and real momentum. 

"So for all stakeholders, for employees who drive this, for people who work for us, for people we want to come and join us, a great foundation for investors, a great time to consider this company and, for customers, a great opportunity to work with this company as we secure a future for all of us."