UK Defence Contractor Babcock Writes Off £95 Million on Frigate Deal as Costs Spiral

Babcock International has reversed nearly £96 million in previously recorded revenue from its five-ship Type 31 frigate contract, part of a £140 million total charge announced in June. Inflation and rework expenses since the fixed-price deal was signed in 2019 have squeezed margins. The reversal—a restatement of projected earnings rather than a fresh cost overrun—suggests more setbacks may emerge as construction accelerates.