Rosyth Dockyard operator Babcock International has recorded a surge in profits.

The company, which is a significant employer in Scotland, employing over 3,100 people at Rosyth and Faslane, grew core profits by £33 million, to £154.4 million in the six months to September 30. The second half of the year has also started well.

Chief executive David Lockwood said Babcock had, in recent months, secured multiple new contract awards and agreements that will help drive future growth.

The wins have been made against the backdrop of mounting concern about the potential fallout from Russia’s war on Ukraine and tensions between the US and China. The outlook has darkened since the crisis in Gaza erupted last month.

“The global threat environment and geopolitical situation remains unstable, meaning that the services and products we provide across our diverse international footprint have never been more important, as reflected by the good operating and financial momentum across the Group,” said Mr Lockwood.

Babcock has won defence-related contracts in a wide range of countries, stretching from the UK to Australia.

And in July, the company was awarded an initial 12-month contract from the Ministry of Defence to support UK-gifted platforms to Ukraine. This covers the provision of operational support to armoured vehicles, training of Ukrainian personnel and management of vital equipment, supply chains and spares.

Babcock’s operations in Scotland have benefited from long-term contracts awarded in past years. The company is building five Type 31 frigates at Rosyth dockyard under a programme that will provide work for the facility until 2028.

Directors are confident enough about Babcock’s prospects to have decided the company should declare its first dividend since 2019.