- Defence contractor Babcock International reported a fall in half-yearly profit amid 'step downs' related to the end of its aircraft carrier contracts and business sales.

For the six months ended 30 September, pre-tax profit fell to £202.5m from £245.5m and revenue fell to £2.5bn from £2.6bn.

Profit was weighed down by the impact of £119m of step downs related to the end of the company's QEC and Magnox contracts.

Babcock International maintained its guidance for the full year, with stronger-than-expected trading in its marine and land sectors expected to offset weaker-than-expected trading in aviation.

Underlying revenue was expected at around £4.9bn and underlying operating profit between £540m and £560m.

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