finance
Babcock Reports £140m Remedial Costs on First Two Type 31 Frigates
Babcock International said the first two vessels, HMS Venturer and HMS Active, are out of sequence due to identical mistakes, pushing cumulative losses on the programme above £300 million. Both ships have been floated for fitting out while the company absorbs the overrun under its 2019 fixed-price contract with the Ministry of Defence.
May 13, 4:53 PM·2m read1 source
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Construction errors have forced the first two Royal Navy Type 31 frigates out of sequence, Babcock International confirmed in a trading update on Wednesday. HMS Venturer bore the brunt of the mistakes, with identical errors also made on HMS Active. The defence contractor said the remedial work will cost £140 million and will bring cumulative losses on the Type 31 programme to more than £300 million.
Babcock signed a fixed-price agreement with the Ministry of Defence in 2019 under which the company is responsible for absorbing all cost overruns. Approximately £100 million of the £140 million charge will appear as a revenue reversal in the 2026 financial year. The firm now anticipates operating profits of £293 million for the year ending March, a drop from £363 million the previous year.
Both HMS Venturer and HMS Active have now been floated and are undergoing fitting out. HMS Formidable has had its keel laid and construction has commenced on a fourth vessel, HMS Bulldog. Babcock declined to say whether correcting the engineering errors would result in additional delays.
HMS Venturer was initially expected to enter service in 2023. That target was later pushed back to 2027. The complete five-ship Type 31 fleet is anticipated to be operational by the early 2030s. Type 31 vessels are intended to serve as the backbone of the Royal Navy's future fleet.
The 5,700-tonne warships will measure approximately 450 ft in length, accommodate crews of around 100 sailors and reach speeds of roughly 30 mph. They are capable of deploying helicopters, missiles, armed interceptor craft and drones. The frigates are designed to handle counter-piracy, tackling people smuggling, and full armed conflict.
