Engineering company Babcock today posted a 34% jump in its annual profit.

The company, which has a site in Gloucester, also saw strong revenue growth, up 11% organically to £4.4 billion.

Underlying operating profit rose to £238 million. This includes a £90 million loss on the Type 31 contract and a £17 million profit on disposal of a property.

The strong results to the year ended March 31, 2024, were helped by strong operating performance in nuclear, land and aviation sectors.

The company said underlying operating profit was £237.8 million and reiterated its medium-term guidance.

Babcock said its year-end net debt stood at £435 million, a reduction of £129 million from a year ago, driven by strong cash generation.