Defence firm Babcock International Group Plc has revealed an widening operating loss of for the year to March 31, after a £2billion write down.

The business, which has engineering sites in Gloucester and Tewkesbury, counts the Ministry of Defence amongst its biggest customers.

Losses reached £1.64billion, from £75.6 million a year earlier, blamed on reduced cashflow expectations from its land and aviation businesses.

Revenue also dipped from £4.42bn to £4.18bn, as shares plummeted 16 per cent to 255.6p.

After announcing plans to cut 1,000 jobs earlier in the year, as part of its latest financial results Babcock also revealed plans to raise £400m by selling off different parts of the group.

CEO David Lockwood said: "We have now completed the series of reviews announced in January. These have reinforced our confidence in the underlying strength of the Babcock business and at the same time helped identify the necessary strategic changes to improve our performance. We have a plan in place to strengthen the Group without the need for an equity issue.

"The full year 2021 performance reflects both the new financial baseline for the business and the impact of COVID-19 on our operations and markets. I'd like to thank all our people who have been working tirelessly throughout the pandemic to deliver the vital services on which our customers depend.

"Looking forward, Babcock will be a simplified and more focussed group with a renewed emphasis on the exceptional engineering skills of its people. We will be well placed to take advantage of the many opportunities we see in both UK and international markets, leading to improved cash generation and profitability in the medium term."