Babcock & Boom in Military Spending

Babcock shares soared on Wednesday as the defence group revealed double-digit revenue growth on the back of a global boom in military spending. The FTSE 250 group’s sales swelled 11 per cent to more than £2.4billion over the first six months of its financial year, propelled by 22 per cent growth in its nuclear division, while underlying operating profits jumped 10 per cent to £169million. Babcock, which hiked its interim dividend by 18 per cent to 2p, told shareholders the ‘complex geopolitical backdrop’ has bolstered demand for its ‘specialist capabilities’ thereby ‘driving increased, higher quality growth opportunities’.