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1. Preparation of the Group financial statements
Basis of preparation
Babcock International Group PLC (the parent and ultimate parent company) is a public company limited by shares incorporated in the
United Kingdom under the Companies Act. Babcock International Group PLC is listed on the London Stock Exchange and is incorporated
and domiciled in England, UK.
Babcock is an international defence company providing support and product solutions to enhance our customers\u2019 defence capabilities
and critical assets. We provide through-life technical and engineering support for our customers\u2019 assets, delivering improvements in
performance, availability and programme cost. We deliver these critical services to defence and civil customers, including engineering
support to naval, land, air and nuclear operations, frontline support, specialist training and asset management. We design and manufacture
a range of defence and specialist equipment, from naval ships and weapons handling systems to liquid gas handling systems. We also
provide integrated, technology-enabled solutions to our defence customers in areas such as secure communications, electronic warfare
and air defence.
The financial statements have been prepared in accordance with United Kingdom adopted International Accounting Standards, and the
Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the
historical cost basis, except for certain financial instruments that have been measured at fair value.
Going concern
The Directors have undertaken reviews of the business financial forecasts, in order to assess whether the Group has adequate resources
to continue in operational existence for the foreseeable future and as such can continue to adopt the going concern basis of accounting.
For assessing going concern, the Board considered the 12-month period from the date of signing the Group\u2019s financial statements for the
year ended 31 March 2026.
The annually prepared budgets and forecasts are compiled using a bottom-up process, aggregating those from the individual business units
into sector-level budgets and forecasts. Those sector submissions and the consolidated Group budget and forecasts are then reviewed by
the Board and used to monitor business performance.
The Board considered the budgets alongside the Group\u2019s available finances, strategy, business model, market outlook and principal risks.
The Group uses a Risk Management Framework to identify and manage risks and these risks are considered in making the going concern
assessment including through incorporation in downside modelling. The Board also considered the mitigation measures being put in place
and potential for further mitigation.
In making its\u2019 going concern assessment, the Board\u2019s view is supported by:
\u2022
The Group\u2019s diverse portfolio of businesses based on well-established market positions, focused on design, manufacture, engineering
support and training for complex and critical assets and infrastructure across naval, land, air and nuclear domains. In FY26, 74% of Group
sales were defence-related and 26% civil;
\u2022
a geographically diverse business with a high proportion of sales to governments and other major prime defence contractors. In FY26,
70% of sales were to defence and civil customers in the UK, and 30% were international;
\u2022
long-term visibility of sales and future sale prospects through an order backlog of \u00a39.8 billion as at 31 March 2026, including incumbent
positions on major defence programmes; and
\u2022
market positions underpinned by a highly skilled workforce, intellectual property assets and proprietary know-how, which are safeguarded
and developed for the future by customer and Group-funded investment.
a) Available financing
As at 31 March 2026, net debt excluding leases was \u00a3(22.7) million and the Group therefore had liquidity headroom of \u00a31.4 billion, including
net cash of \u00a30.7 billion and undrawn facilities of \u00a30.7 billion. These facilities are considered more than adequate to meet current and other
liabilities as they fall due, and support the Group\u2019s negative working capital position largely arising from securing customer advances ahead
of contract work starting. All of the Group\u2019s facilities mature during the viability period, and therefore, in assessing liquidity in future periods,
we have assumed that it will be possible to re-finance the Group\u2019s facilities at current market rates.
As of June 2026, the Group\u2019s facilities and bonds totalling \u00a31.4 billion were as follows:
\u2022
\u00a3600 million revolving credit facility (RCF) maturing July 2031
\u2022
\u00a3300 million bond maturing 5 October 2026
\u2022
\u20ac550 million bond, hedged at \u00a3493 million, maturing 13 September 2027
\u2022
One overdraft facility totalling \u00a350 million
The RCF is the only facility with covenants attached, which are applicable if the Group has a rating of less than BBB. If applicable, the key
covenant ratios are (i) net debt to EBITDA (gearing ratio) of 3.5x (ii) and EBITDA to net interest (interest cover) of 4.0x. In the event these
become applicable, they are measured twice per year \u2013 on 30 September and 31 March.
The RCF lenders are fully committed to advance funds under the RCF to the Group, provided that the Group has satisfied the usual ongoing
undertakings, and the creditworthiness of the Group\u2019s relationship banks is closely monitored. Based on their credit ratings, we have no
credit concerns with our relationship banks. Given the importance of the RCF to the Group\u2019s liquidity position, our assessments of going
concern and viability have tested the Group\u2019s gearing ratio, interest cover and liquidity headroom throughout the period under review up
to their current maturity dates and to the end of the five-year plan, assuming renewal of the RCF with consistent covenants to those
currently applied.
b) Base case scenario The base case budgets and forecasts show significant levels of headroom against both financial covenants, and liquidity headroom based on the current committed facilities outlined above. That base case largely assumes we maintain our incumbent programme positions if re-let during the five-year period, with margin recovery if they are currently below the Group average. Many opportunities available to the Group, where we do not yet have high conviction of securing the work, have been excluded from the base case to maintain a degree of caution. The base case assumes no further reshaping of the business portfolio, so it is not dependent upon any future cash proceeds from divestments. It also reflects pension deficit contributions in excess of income statement charges of around \u00a325 million in each period of the model. c) Reverse stress testing of the base case To assess the level of headroom within the available facilities, a reverse stress test was performed to see what level of performance deterioration against the base case budgets and forecasts (in both EBITDA and net debt) was required to challenge covenant levels. Of the remaining measurement points within the available facility period, the lowest required reduction in forecast EBITDA to hit the gearing covenant level was \u00a3376 million and the lowest net debt increase was 1,260%. The lowest required reduction in forecast EBITDA to hit the interest cover covenant was \u00a3308 million. Given the mitigating actions that are available and within management\u2019s control, such movements are not considered plausible. d) Severe but plausible downside scenarios The Directors also considered a series of severe but plausible downside scenarios which are sensitivities run against the base case budget and forecasts for the duration of the assessment period. These sensitivities include \u2013 separately \u2013 a reduction in bid pipeline closure (business winning), a deterioration in large programme performance across the Group, a deterioration in the Group\u2019s working capital position, and a regulator-imposed cessation in flying two of the largest aircraft fleets in the Group. All of these separate scenarios showed compliance with the financial covenants throughout the period. As with any company or group, it would be possible, however unlikely, to model individual risks or combinations of risks that would threaten the financial viability of the Group. The Board has not sought to model events where it considers the likelihood of such events not to be plausible. In preparing a combined severe but plausible (SBP) downside case, the Board considered the feed of individual risks from the sectors covering the above sensitivities. Overall there were c.90 profit and cash flow risks identified. A simple aggregation of all of these risks is not considered plausible as the Group operates businesses and contracts which run largely independently of each other, albeit with a relatively small number of customers within each geography. These identified risks were seen as \u2018sector independent\u2019 (ie there is no direct read across from one sector to another). The Board decided to reduce the aggregation of the risks by 25% to reflect the implausibility of all such risks fully crystallising within the same period. Conclusion After undertaking the assessment described above, the Directors, at the time of approving the financial statements, have a reasonable expectation that the Company and the Group have adequate financial resources to continue in operational existence for the foreseeable future. As such, the consolidated financial statements have been prepared on a going concern basis. The Directors do not believe there are any material uncertainties to disclose in relation to the Group\u2019s ability to continue as a going concern. New and amended standards adopted by the Group The following standards and amendments to IFRSs became effective for the annual reporting period beginning on 1 April 2025 and did not have a material impact on the consolidated financial statements: \u2022 Amendments to IAS 21 \u2013 Lack of Exchangeability New IFRS accounting standards, amendments and interpretations not yet adopted The Group has not early adopted any other amendment, standard or interpretation that has been issued but is not yet effective. It is expected that these standards and amendments will be adopted on the applicable effective date. The following new or amended IFRS accounting standards, amendments and interpretations not yet adopted are not expected to have a significant impact on the Group: \u2022 IFRS 18 \u2013 Presentation and Disclosures in Financial Statements: Replaces IAS 1 and makes minor changes to IAS 8, IFRS 7, IAS 7 and IAS 33. Introduces new requirements regarding specific categories and subtotals in the Group Income Statement and further disclosures on management performance measures (MPMs) and disclosures aimed at improving aggregation and disaggregation. IFRS 18 was formally endorsed by the UK endorsement board in December 2025 and is applicable for annual reporting periods beginning on or after 1 January 2027 with earlier adoption permitted. The Group does not intend to adopt this standard early and therefore this standard is expected to be first presented within the Annual Report for the period ended 31 March 2028. It is anticipated that the application of IFRS 18 may have an impact on the presentation and disclosure of the Group\u2019s consolidated financial statements from the point of adoption.
\u2022
IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures: IFRS 19 is only permitted to be applied by subsidiaries with no public
accountability. As the Group is not a subsidiary, application of the standard is not permitted and therefore will have no impact on the
Group\u2019s Consolidated Financial Statements. IFRS 19 is applicable for annual reporting periods beginning on or after 1 January 2027 with
earlier adoption permitted (subject to formal endorsement by the UK endorsement board).
\u2022
Amendments to IFRS 7 and IFRS 9 - Classification and Measurement of Financial Instruments & Contracts referencing nature-
dependant electricity: Effective from 1 January 2026 and not assessed to have a material impact on the Group\u2019s Income Statement or
Statement of Financial Position.
\u2022
Annual improvements to IFRS accounting standards (volume 11): Effective from 1 January 2026 and not assessed to have a material
impact on the Group\u2019s Income Statement or Statement of Financial Position.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiary undertakings together with its share of
joint ventures\u2019 and associates\u2019 results. Intra-Group transactions, balances, income and expenses are eliminated on consolidation.
(a) Subsidiaries
A subsidiary is an entity controlled by the Group. An entity is controlled by the Group regardless of the level of the Group\u2019s equity interest in
the entity, when the Group is exposed or has rights to variable returns from its involvement with the entity and has the ability to impact those
returns through its power over the entity.
In determining whether control exists, the Group considers all relevant facts and circumstances to assess its control over an entity such as
contractual commitments and potential voting rights held by the Group if they are substantive.
Subsidiaries are fully consolidated from the date control has been transferred to the Group and de-consolidated from the date control
ceases. Where control ceases, the results for the year up to the date of relinquishing control or closure are analysed as continuing or
discontinued operations.
(b) Joint ventures and associates
Associates are those entities over which the Group exercises its significant influence when it has the power to participate in the financial
and operating policy decisions of the entity but it does not have the power to control or jointly control the entity. A joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement, rather than
rights to its assets and obligations for its liabilities.
Materiality
Various disclosures make reference to items considered as material or immaterial to the financial statements. The Group considers
information to be material if omitting it or misstating it could influence decisions that users make on the basis of the financial information
provided. Materiality is considered from both a quantitative and qualitative factor perspective. In addition to subsequent specific references
to materiality, and in compliance with IFRS, certain disclosures have not been provided where the information resulting from that disclosure is
not material.
Critical accounting estimates and judgements
In the course of preparation of the financial statements, judgements and estimates have been made in applying the Group\u2019s accounting
policies that have had a material effect on the amounts recognised in the financial statements. The application of the Group\u2019s accounting
policies requires the use of estimates and the inherent uncertainty in certain forward-looking estimates may result in a material adjustment to
the carrying amounts of assets and liabilities in the next financial year. Critical accounting estimates are subject to continuing evaluation and
are based on historical experience and other factors, including expectations of future events that are believed to be reasonable in light of
known circumstances. Critical accounting estimates and judgements in relation to these financial statements are considered below:
(a) Critical accounting judgements
Critical accounting judgements, apart from those involving estimations, that are applied in the preparation of the consolidated financial
statements are discussed below. Detail of the Group\u2019s key judgements involving estimates are included in the Key sources of estimation
uncertainty section.
(i) Acting as principal or agent
A number of the Group\u2019s contracts include promises in relation to procurement activity undertaken on behalf of customers at low or nil margin,
sub-contractor arrangements, and other pass-through costs. Management is required to exercise judgement on these revenue streams in
considering whether the Group is acting as principal or agent. This is based on an assessment as to whether the Group controls the relevant
goods or services under the performance obligations prior to transfer to customers. Factors that influence this judgement include the level of
responsibility the Group has under the contract for the provision of the goods or services, the extent to which the Group is incentivised to fulfil
orders on time and within budget, either through gain share arrangements or KPI deductions in relation to the other performance obligations
within the contract, and the extent to which the Group exercises responsibility in determining the selling price of the goods and services.
Taking all factors into consideration, the Group then comes to a judgement as to whether it acts as principal or agent on a performance
obligation-by-performance obligation basis with both principal and agent conclusions being reached across the Group\u2019s portfolio of revenue
arrangements. Any changes in this judgement would not have a material impact on profit, although there may be a material impact to revenue
and operating costs.
(ii) Determining the groups of cash generating units to which goodwill is allocated IAS 36 requires that, for the purpose of subsequent impairment testing, goodwill acquired in business combinations be allocated to cash generating units (\u2018CGUs\u2019) or groups of CGUs expected to benefit from the synergies of the combination. Such CGUs or groups of CGUs shall represent the lowest level at which goodwill is monitored for internal management purposes and shall not be larger than an operating segment. This determination is generally straightforward and factual, however in some cases judgement is required. The Group has identified four operating segments \u2013 Aviation, Land, Marine and Nuclear \u2013 and in the case of Aviation, Marine and Nuclear, goodwill is allocated and monitored at the operating segment level (with these three operating segments each also comprising a group of CGUs). Although Land is considered a single operating segment, goodwill is separately allocated and monitored between the Africa business (as one group of CGUs) and the remainder of Land (as a second group of CGUs). This distinction exists due to historic assessments of the Group\u2019s operating segments and the fact that previous Africa business combinations were only anticipated to provide synergies and benefits across the Africa CGUs. Other territories may represent separate CGUs or groups of CGUs but are neither separate operating segments nor is goodwill separately allocated or monitored at these territory levels. Over time management reviews the basis upon which goodwill is allocated to ensure it remains appropriate as businesses are acquired and divested and reporting structures change, including how information is reported to the Chief Operating Decision Maker. If there was a change in this judgement this could result in a material adjustment to goodwill. Further detail is included in notes 3 and 10. (b) Key sources of estimation uncertainty The key sources of estimation uncertainty at the reporting period end that may result in significant risk of material adjustment to the carrying amount of assets and liabilities within the next financial year are set out below: (i) Revenue and profit recognition The following represent the notable assumptions impacting upon revenue and profit recognition as a result of the Group\u2019s contracts with customers: \u2022 Stage of completion & costs to complete \u2013 The Group\u2019s revenue recognition policies require management to make an estimate of the cost to complete for long-term contracts. Management estimates outturn costs on a contract-by-contract basis and estimates are carried out by suitably qualified and experienced personnel. Estimates of cost to complete include assessment of contract contingencies arising out of technical, commercial, operational and other risks. The assessments of all significant contract outturns are subject to review and challenge, and judgements and estimates are reviewed regularly throughout the contract life based on latest available information with adjustments made where necessary. As contracts near completion, often less judgement is required to determine the expected outturn. The most significant estimate of contract outturn relates to the Type 31 programme as outlined below. \u2022 Variable consideration \u2013 the Group\u2019s contracts are often subject to variable consideration including performance-based penalties and incentives, gain/pain share arrangements and other items. Variable consideration is added to the transaction price only to the extent that it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the underlying uncertainty is resolved. \u2022 Inflation \u2013 The level to which the Group\u2019s revenue and cost for each contract will be impacted by inflation is a key accounting estimate, as this could cause the revenue and cost of contract delivery to be greater than was expected at the time of contracting. The Group\u2019s contracts are exposed to inflation due to rising employment costs, as well as increased costs of raw materials. The Group endeavours to include cost recovery mechanisms or index-linked pricing within its contracts with customers in order to mitigate any inflation risk arising from increasing employment and raw material costs. The above assumptions all impact upon each individual contract to varying extents depending on the risk profile of the contract and the individual contract terms and conditions. As such sensitivities to these assumptions are not provided as to do so is not considered practicable. Type 31 contract estimates The contract to produce 5 Type 31 frigates was won under competitive tender in 2019, based on Babcock\u2019s Arrowhead 140 design. The contract is important in providing access to an expected pipeline of Type 31 work and developing our Arrowhead 140 design for opportunities overseas. Although the contract contained certain escalation clauses, it provided limited protection from the macroeconomic changes of recent years relating to Brexit, Covid, raw material prices and UK labour shortages, which have significantly increased our costs. This has resulted in the contract being loss-making, together with increases in estimated costs due to the maturing of the design and the forecast cost of labour. As we finish structural completion of ship one, the bulk of the remaining work now relates to outfitting and commissioning. During the outfitting stage we have experienced higher than expected levels of rework as a result of changes to the design and the long-term impacts of out-of-sequence build activity earlier in the programme. Whilst the number of such rework events is not entirely unexpected, the work is being performed in the later stages of completion and therefore is more complex and more costly. The ability to increase levels of programme productivity through full enablement of production tasks has also been impacted. As the build of ship two is close behind ship one, there is also some cross over in the design-related work necessary to this ship. With ships three and four still in the early construction stages, the extent of impact on these and future vessels is comparatively reduced. As a consequence, we have performed an engineering maturity review, and we have updated our financial estimates to complete the programme. These re-estimates not only cover the production costs of material and personnel, but also an increased programme risk contingency. This is reflected in a charge on the contract at the year-end of \u00a3140.0 million for the revised costs to complete delivery of the Type 31 design and build contract which is fully recognised in FY26, but the cash costs of which will be incurred over the remainder of the programme. Within the \u00a3140.0 million charge, \u00a395.5 million is recognised as a revenue reversal in FY26 (with a corresponding increase in contract liabilities) and the balance increases the contract loss provision. The estimation process has been extensive given the new information available. The key steps are set out below but this year has involved further and deeper analysis of operational data, the results of pilot schemes, input from external experts and the customer, consideration of alternative assumptions and retrospective review of previous assumptions. Multiple review processes were held between Programme, Sector and Group management, culminating in dedicated reviews with the Audit Committee which focused on the key assumptions around productivity, rework, labour costs, schedule and risk. These reviews involved direct challenge of key representatives from the contract team, assessment of the process followed and independent scrutiny of the available evidence for key assumptions. Following the estimation process we have reassessed and updated the disclosure of major sources of estimation uncertainty set out below. Determining the contract outturn, and therefore revenue and onerous contract provision recognised, requires assumptions and complex judgements to be made about the future performance of the contract. The level of uncertainty in the estimates made in assessing the outturn is linked to the complexity of the underlying contract. The estimates made in assessing the outturn are set out below, along with the related estimation methods and data sources. a) The number of production hours \u2013 which requires estimation of a standard level of hours for manufacturing, structural and outfitting activities, determined with reference to previous experience of comparable programmes and industry data where available. The estimation of the time taken to improve to this standard level is also relevant, based on a detailed operational improvement programme and evidence from pilot work. The volume of activities is based on a detailed assessment of the Bill of Materials, supported by dedicated engineering software b) The ability to improve operational performance through quality and engineering improvements over the five ships \u2013 which requires actions to reduce re-work, particularly arising from engineering change c) The cost of labour \u2013 which is dependent on our ability to recruit, the mix of the workforce between permanent and contingent workers from the UK and overseas and the utilisation of semi-skilled and apprentice workers. A detailed resourcing plan is used to support this estimate d) The cost of bought-in parts and services through suppliers and sub-contractors \u2013 which includes the outcome of remaining procurement activity, the finalisation of areas of unagreed pricing and the agreement of discounts and incentive arrangements e) The number of hours required by support functions \u2013 primarily in engineering which requires effective management of production support and change requests. A detailed engineering maturity review has been performed to support this estimate f) The determination of non-incremental costs - which relate directly to fulfilling the contract and are therefore partially allocated to the contract to determine the loss provision, including facility and overhead costs g) The impact of inflation - on the contract price and costs to fulfil the contract, particularly in relation to labour which may be impacted by changes in the local, UK and overseas labour markets, competitor activity and government policy h) The achievement of the build schedule to completion and final acceptance \u2013 including the satisfaction of all contractual performance criteria. The schedule analysis is based on detailed modelling and the performance of multiple scenario analysis The cost estimation process has involved a number of key elements: \u2022 Regular governance at the Group level to monitor progress and enable support as required \u2022 Bottom-up costing at the activity level performed by individual business areas \u2022 Reassessment of risk based on the updated cost estimates, considering ranges of outcomes and probabilities \u2022 Input from functional specialists from across the Group \u2022 Development of financial models based on cost drivers, using actual data and other evidence to inform the forecast outturn \u2022 Detailed documentation of estimates made, including process followed, sources of evidence and basis for conclusions \u2022 Review and challenge at the Programme, Sector and Group levels, culminating in dedicated reviews with the Audit Committee The range of possible future outcomes in respect of assumptions made to determine the contract outturn could result in a material increase or decrease in revenue and the value of the onerous contract provision, and hence on the Group\u2019s profitability, in the next financial year. The estimates described above are by their nature inter-related for this programme and are unlikely to change with everything else constant. However, for illustrative purposes, we have provided sensitivities to certain isolated changes in key estimates on the basis that all other factors remain constant: \u2022 Production hours \u2013 which are impacted by production norms, rate of improvement and quality/engineering improvements (see a) and b) above). A 10% increase/decrease in production hours would increase/decrease the loss by \u00a329 million \u2022 Labour rate \u2013 which is impacted by our ability to recruit permanent staff, the mix of the workforce, ancillary costs and inflation (see c) and g) above). A 10% increase/decrease in the average labour rate would increase/decrease the loss by \u00a334 million \u2022 Schedule \u2013 which is impacted by various factors above. A 6-month delay beyond the current planning assumption would increase the loss by \u00a315 million Overall, with c.\u00a30.7 billion of estimated costs to go over the life of the contract, if actual costs were to differ from those assumed by 10%, the potential impact on the contract outturn could be c.\u00a370 million. Any increase in loss would cause a commensurate deterioration in the balance sheet through a combination of an increase to the onerous loss provision (note 20), reductions in contract assets (note 16) or increases in contract liabilities (note 18). To mitigate this, comparisons of actual contract performance and previous forecasts used to assess the contract outturn are performed regularly, with consideration given to whether any revisions to assumptions are required. The uncertainty over the contract outturn will reduce in the next financial year but there will be substantial activity and risk over the remaining years. In a major ship build programme of this nature, it is inherently possible that there may be changes in circumstances which cannot reasonably be foreseen at the present time. (ii) Defined benefit pension schemes obligations The Group\u2019s defined benefit pension schemes are assessed annually in accordance with IAS 19 and the valuation of the defined benefit pension obligations is sensitive to the inflation, discount rate, actuarial and life expectancy assumptions used. There is a range of possible values for the assumptions and small changes to the assumptions may have a significant impact on the valuation of the defined benefit pension obligations. In addition to the inflation, discount rate and life expectancy estimates, management is required to make an accounting judgement relating to the expected availability of future accounting surpluses under IFRIC 14. Further information on the key assumptions, sensitivities and judgements is included in note 25. (c) Other estimates which are not key sources of estimation uncertainty (i) The carrying value of goodwill Goodwill is tested annually for impairment, in accordance with IAS 36, Impairment of Assets (\u2018IAS 36\u2019). The impairment assessment is based on assumptions in relation to future cash flows expected to be generated by the groups of cash generating units to which goodwill is allocated, together with appropriate discounting of the cash flows. In both the current and prior years, we have not identified a key source of estimation uncertainty in respect of goodwill. The headroom across all identified groups of CGUs against which goodwill is allocated and monitored is such that, under all modelled sensitivities, no reasonably possible changes in assumptions could result in the complete elimination of the headroom. The key assumptions in estimating the carrying value of goodwill are discount rate, long-term growth rate and growth rate in the short-term cash flows. Inflation rates are incorporated into the impairment assessment through their inclusion within the growth rates in cash inflows and outflows and through the methodology by which discount rates are determined. Were inflation to impact upon all cash flows equally, an impairment assessment should be neutral to the impact of inflation. The Group has a number of protections and exposures to the impact of inflation across its portfolio of revenue arrangements and supply chain agreements resulting in an indirect impact of inflation on the impairment outturn. Further information on key assumptions and sensitivity analyses are included in note 10. (ii) Impact of climate change In preparing the Group financial statements, consideration has been given to the potential impact of climate change. Climate-related matters create a number of risks and opportunities for the Group. Climate-related matters are not considered to have a material impact on the Group\u2019s critical accounting judgements or key sources of estimation uncertainty. Climate-related matters primarily impact the Group through their potential impact on the Group\u2019s budgets and forecasts. Budgets and forecasts affect the current year financial statements through their impact on the following areas: \u2022 Going concern and viability of the Group; \u2022 Cash flow forecasts used in impairment assessments of including goodwill, intangible assets and property, plant & equipment; \u2022 Cash flow forecasts used in the Impairment assessments of financial assets; and \u2022 The assessed useful economic lives of the Group\u2019s non-current assets Revised budgets and forecasts, incorporating an estimated financial impact on the climate-related risks and opportunities have been modelled to understand the possible financial impact and the resilience to these sensitivities is the basis for why climate-related matters have been concluded to not have a material impact on the critical accounting judgements or key sources of estimation uncertainty. Whilst there is currently no significant short- to medium-term impact expected from climate change, the Group is aware of the ever-changing risks attached to climate change and will regularly assess these risks against judgements and estimates made in preparing the Group consolidated financial statements.
Material accounting policy information
The material accounting policy information relevant to specific accounting areas is set out within the associated note. Other general policy
information is set out below. Material accounting policies have been applied consistently throughout the year and the comparative year
except as otherwise stated.
(a) Transactions with non-controlling interest
The Group\u2019s policy is to treat transactions with non-controlling interest as transactions with owners of the Company. These are therefore
reflected as movements in reserves.
(b) Foreign currencies
(i) Functional and presentation currency
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Sterling, which is
the Company\u2019s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency of subsidiaries of the Group using the exchange rates prevailing at
the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at
the year-end exchange rates. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at exchange rates ruling at the reporting date of monetary assets and liabilities denominated in foreign currencies are recognised in the
income statement.
Exchange differences arising from the translation of the statement of financial positions and income statements of foreign operations into
Sterling are recognised as a separate component of equity on consolidation. Results of foreign operations are translated using the average
exchange rate for the month of the applicable results, the net assets translated at year-end exchange rates and equity held at historic
exchange rates. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or
loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and
translated at period-end exchange rates.
(c) Government grants and contributions
In the course of our business we receive certain grants or contributions from governments. These are deducted from the related expenses in
the income statement. These amounts total \u00a356.0 million (FY25: \u00a348.3 million).
Revenue recognition
Revenue recognised represents income derived from contracts with customers for the provision of goods and services in the ordinary
course of the Group\u2019s activities. The Group recognises revenue in line with IFRS 15, Revenue from Contracts with Customers. IFRS 15
requires the identification of performance obligations in contracts, determination of contract price, allocation of the contract price to the
performance obligations and recognition of revenue as performance obligations are satisfied.
(i) Performance obligations
Contracts are assessed to identify each promise to transfer either a distinct good or service or a series of distinct goods or services that
are substantially the same and have the same pattern of transfer to the customer. Goods and services are distinct if the customer can
benefit from them either on their own or together with other resources readily available to the customer and they are separately
identifiable in the contract.
In assessing whether the performance obligations are separately identifiable, the services are reviewed to determine the extent to which
the goods or services within a contract are interrelated and whether they modify other goods or services within a contract. The Group
also considers whether the goods and/or services are integrated and represent a combined output for which the customer has
contracted. The integrated output nature of many of the services provided by the Group results in some contracts only having one
performance obligation.
(ii) Determination of contract price
The contract price represents the amount of consideration which the Group expects to be entitled to in exchange for delivering the
promised goods or services to the customer. Contracts can include both fixed and variable consideration.
Inclusion of variable consideration in the contract price requires the exercise of judgement in relation to the amount to be received
through unpriced contract variations and claims (see section (v) below for further details) and variable elements of existing contracts,
such as performance-based penalties and incentives, and gain/pain share arrangements where cost under/over spends are shared with
the customer.
Given the long-term nature of the Group\u2019s contracts with customers, a number of arrangements include clauses to allow for inflation
within the transaction price. Such inflation clauses are treated as variable consideration.
Elements of variable consideration are estimated at contract inception and at the end of each reporting period. Any required adjustment is
made against the contract price in the period in which the adjustment occurs.
Variable consideration is estimated using either the expected value or the most likely amount and is added to the transaction price only to
the extent that it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the
underlying uncertainty is resolved. This judgement is made by suitably qualified and experienced personnel based on the contract terms,
status of negotiations with customers and historical experience with customers and with similar contracts. As part of this judgement,
variable consideration may be constrained until the uncertainty is resolved. In the case of unpriced variations these will be constrained to
the extent that such variable consideration is not considered highly probable.
Variable consideration may be included in the total transaction price or, in certain circumstances, may be allocated to a specific time period.
Where variable consideration is allocated to a specific time period this will typically be in relation to performance related deductions.
(iii) Allocation of contract price to performance obligations
Given the bespoke nature of many of the goods and services the Group provides, standalone selling prices are generally not observable
and, in these circumstances, the Group allocates the contract price to performance obligations based on cost plus margin. This amount
would be the standalone selling price of each performance obligation if contracted with a customer separately.
(iv) Revenue and profit recognition
Performance obligations are satisfied, and revenue recognised, as control of goods and services is transferred to the customer. Control
can be transferred at a point in time or over time and the Group determines, for each performance obligation, whether it is satisfied over
time or at a point in time.
Revenue recognised over time
Performance obligations are satisfied over time if any of the following criteria are satisfied:
\u2022
the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs; or
\u2022
the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to
payment for work done; or
\u2022
the Group\u2019s performance creates or enhances an asset controlled by the customer.
Typical performance obligations in the Group\u2019s contracts that are recognised over time include the delivery of services (such as
maintenance, engineering and training), as the customer simultaneously receives and consumes the benefits of the Group\u2019s performance
as it performs the services. Revenue from the design, manufacture and enhancement of bespoke assets is also recognised over time,
as the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to
payment for performance completed to date, being recovery of costs incurred in satisfying the performance obligation plus a reasonable
profit margin.
Where the Group satisfies performance obligations over time, the Group primarily uses an input method to measure satisfaction of each
performance obligation based on costs incurred compared to total estimated contract costs. For the majority of the Group\u2019s contracts,
this is deemed to be the most appropriate method to measure Babcock\u2019s effort in satisfying the applicable performance obligations.
Costs are included in the measurement of progress towards satisfying the performance obligation to the extent that there is a direct
relationship between the input and satisfaction of the performance obligation. For contracts where costs incurred is not deemed to be the
most appropriate measure, the Group uses time elapsed to measure satisfaction of the performance obligation.
Under most of the Group\u2019s contracts, the customer pays in accordance with a pre-arranged payment schedule or once milestones have
been met. If the amount of revenue recognised (as measured by the methods described above) exceeds the amount of cash received
from the customer then the difference will be held on the statement of financial position. This will typically be comprised of a mixture of
contract assets and trade receivables. If the amount of cash collected together with amounts due under the contract but uncollected
exceeds the amount of revenue recognised then the difference is also held on the statement of financial position as a contract liability.
See note 16 and note 18 for further details on how contract assets and liabilities are recognised.
Revenue recognised at a point in time
If control of the goods or services is not transferred to the customer over time, then revenue is recognised at the point in time that control
is transferred to the customer.
Point in time recognition mainly applies to sale of goods. Control typically transfers to the customer when the customer has legal title to
the goods and this is usually coincident with delivery of the goods to the customer and right to receive payment by the Group. These
revenues are delivered predominantly by the Aviation and Land sectors and include sales of equipment to commercial customers and
procurement of consumables on behalf of the Ministry of Defence (MOD). Sale of goods at a point in time represents approximately 6%
of Group revenues (2025: 7%).
Assessment of contract profitability
Profit is recognised to the extent that the final outcome on contracts can be reliably assessed. Contract outturn assessments are carried
out on a contract-by-contract basis, including consideration of technical and other risks, by suitably qualified and experienced personnel
and the assessments of all significant contracts are subject to review and challenge.
Estimating contract revenues can involve judgements around whether the Group will meet performance targets and/or earn incentives,
as well as consideration as to whether it is necessary to constrain variable revenues to meet the highly probable not to significantly
reverse test set out in paragraph 56 of IFRS 15. When considering variations, claims and contingencies, the Group analyses various
factors including the contractual terms, status of negotiations with the customer and historical experience with that customer and with
similar contracts. Estimates of costs include assessment of contract contingencies arising out of technical, commercial, operational and
other risks. The assessments of all significant contract outturns are subject to review and challenge and estimation uncertainty is
resolved on a contract-by-contract basis as contracts near the end of the project lifecycle.
If a contract is deemed to be loss making the present obligation is recognised and measured as provision. Further detail is included in the
Provisions accounting policy.
(v) Contract modifications
Claims and variations
The Group\u2019s contracts are often amended for changes in the customers\u2019 requirements. Contract modifications can relate to changes in
both contract scope and price arising in the ordinary course of delivering contracts, which are referred to as contract variations. Such
variations may arise as a result of customer requests or instructions or from requests from the Group in response to matters arising
during the delivery of contracts. For example, some contracts include the requirement to conduct surveys and to report on or to
recommend additional work as required. Some contracts may require the Group to proceed with variations and to agree pricing
subsequently. See further detail on accounting for contract modifications below.
Contract modifications can also refer to changes in price only, with no change in scope, where there is a difference of view or dispute in
relation to interpretation of contracts. These contract claims and variations are considered to be modifications as referred to in paragraph
18 of IFRS 15.
Accounting for contract modifications
The Group accounts for contract modifications in one of three ways, based on the facts and circumstances of the contract modification:
1. Prospectively, as an additional, separate contract;
2. Prospectively, as a termination of the existing contract and creation of a new contract; or
3. As part of the original contract using a cumulative catch-up.
The Group recognises contract variations, which impact both scope and price, when they are approved in accordance with IFRS 15.
The Group\u2019s preferred approach is to approve contract modifications by formal contract amendment. However, the approval of contract
modifications may be required to be carried out at pace and other mechanisms, informed by established customer relationships and
local working arrangements, can be used to achieve approval of contract modifications. In approving contract modifications in these
circumstances, the Group considers the scope of the contract modification in the context of the contract scope and contract terms.
Contract variations where the formal contract amendment has not been received but which are, in management\u2019s judgement, approved
are accounted for as a contract modification in accordance with IFRS 15 paragraph 18. Revenue from these contract variations is treated
as variable consideration and subject to constraint as outlined in section (ii) above, until the pricing is agreed. Contract claims are also
considered to be contract modifications in accordance with IFRS 15, and revenue is subject to constraint as outlined in section (ii).
Claims and variations which are not deemed to be contract modifications
Claims can also be raised by Babcock against third-party sub-contractors or suppliers to the Group. As these do not relate to contracts
with customers, but rather relate to contracts with suppliers, they are not accounted for under IFRS 15. The Group\u2019s accounting policy is
to account for such claims in accordance with the contingent asset guidance per IAS 37. Income in relation to these claims will only be
recognised once it is virtually certain.
Finance costs
Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under
construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12.
Finance income
Finance income is recognised in the period to which it relates using the effective interest rate method.
Employee costs are recognised as an expense in the period in which they are incurred with the exception of long-term employee
benefits which are recognised in accordance with IAS 19 (see Note 25 for more details) and share based payment charges which are
recognised in accordance with IFRS 2 (see Note 24 for more details).
Current income tax
Current income tax, including UK corporation tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws
that have been enacted or substantively enacted by the reporting date.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation
and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances
either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution
of the uncertainty.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a
net basis, or to realise the asset and settle the liability simultaneously.
Deferred income tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax basis of assets and
liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial
recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither
accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been
enacted, or substantively enacted, by the reporting date and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilised. Deferred tax assets are recognised where deferred tax liabilities exist and are expected to reverse
in the same period as the deferred tax asset or in periods into which a loss arising from a deferred tax asset can be carried forward or
back. In the absence of sufficient deferred tax liabilities, deferred tax assets are recognised where it is probable that there will be future
taxable profits from other sources against which a loss arising from the deferred tax asset can be offset. In assessing the availability of
future profits, the Group uses profit forecasts consistent with those used for goodwill impairment testing.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where
the deferred tax balances relate to the same taxation authority.
Tax is recognised in the income statement except to the extent that it relates to items recognised directly in either other comprehensive
income or in equity.
Dividends are recognised as a liability in the Group\u2019s financial statements in the period in which they are approved. Interim dividends are
recognised when paid.
Accounting policy information
When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets, the difference is
treated as purchased goodwill and capitalised. Goodwill is allocated to the cash generating unit (or group of cash generating units)
expected to benefit from the business combination\u2019s synergies.
Goodwill is predominantly monitored at the operating segment level (Marine, Nuclear and Aviation). Land is a singular operating and
reporting segment however goodwill is separately monitored and allocated between the Group\u2019s Africa operations and those of the other
Land operations. Goodwill is therefore separately tested for impairment between these two groups of cash generating units.
When the fair value of the consideration for an acquired undertaking is less than the fair value of its separable net assets, the difference
is taken directly to the income statement.
Goodwill relating to acquisitions prior to 1 April 2004 is maintained at its net book value on the date of transition to IFRS. From that date
goodwill is not amortised but is reviewed at least annually for impairment.
Goodwill is reviewed for impairment annually at 31 March by assessing the recoverable amount of cash generating units (or groups of
cash generating units) by reference to value-in-use calculations or fair value less cost to dispose if such information exists at the balance
sheet date (typically only where the Group is progressed with disposal related activities that allow a fair value less cost to dispose to be
readily determinable). Goodwill impairments are not subsequently reversed.
On disposal of a subsidiary, joint venture or associate, the attributable amount of goodwill is included in the determination of the profit or
loss on disposal.
Impairment
Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other
assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs.
The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the
carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic
impairments to goodwill are not permissible.
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust as treasury shares.
Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number
of ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust, plus the number of ordinary
shares which are considered potentially dilutive ordinary shares in respect of share incentive schemes, should the vesting conditions
have been met as at the year end. Details of share incentive schemes are provided in note 23 and note 24.
Weighted average is calculated by reference to the date of transactions which increase or reduce the number of shares in issue or the
number of shares held by the Employee Share Trust.
Acquired intangibles
Acquired intangibles are the estimated fair value of customer relationships and brands which are in part contractual, represented by the
value of the acquired order book, and in part non-contractual, represented by the risk-adjusted value of future orders expected to arise
from the relationships.
The carrying value of the contractual element is amortised on a straight-line basis over the remaining period of the orders that are in
process or the future period in which the orders will be fulfilled, as the case may be. The amortisation periods, reflecting the lengths of
the various contracts, are mainly in the range one year to five years, with a minority of contracts and hence amortisation periods, up to
15 years.
The carrying value of the non-contractual element is amortised over the period in which it is estimated that the relationships are likely to
bring economic benefit via future orders.
Relationships are valued on a contract-by-contract and customer-by-customer basis and the pattern of amortisation reflects the
expected pattern of benefit in each case. The amortisation profile is determined on a case-by-case basis and in all cases results in a
front-loaded profile, reflecting the greater certainty of future orders in the near term compared with the longer term. The amortisation
period is in the range between one year to fifteen years.
Acquired brand names are valued dependent on the characteristics of the market in which they operate and the likely value a third party
would place on them. Useful lives are likewise dependent on market characteristics of the acquired business brand. These are amortised
on a straight-line basis over a period of up to five years.
Amortisation charges for the year are recorded in operating costs.
Research and development
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects are recognised as intangible
assets when it is probable that the project will be a success considering its commercial and technological feasibility, when there is an
intention to use or sell the asset, the financial and other resources available to complete the asset and only if the cost can be measured
reliably. Other development expenditure is recognised as an expense as incurred. Development costs previously recognised as an
expense are not recognised as an asset in a subsequent period. Development costs that have been capitalised are amortised from the
date the product is available for use on a straight-line basis over the period of its expected benefit but not exceeding seven years.
Amortisation of development costs is expensed within operating costs in the Group income statement.
Total research and development costs expensed in the period was \u00a3203.3 million (2025: \u00a3214.7 million). Amounts recognised as an
expense are recorded within operating costs.
Computer software
Computer software, excluding the Group\u2019s Enterprise Resource Planning (ERP) system, includes software licences acquired.
Configuration and customisation costs relating to Software-as-a-service agreements are expensed as incurred. Computer software is
measured at cost less accumulated amortisation and is amortised on a straight-line basis over its expected useful life of between three
and ten years. Amortisation of software costs is expensed within operating costs in the Group income statement.
The Group is implementing an ERP system in phases over several years. The ERP system is being amortised over a period of up to
13 years to coincide with the expected support period from the software provider. The core asset commenced amortisation when it was
available for use, which occurred once implementation was completed. Additional capitalisation for improved functionality as the
platform is tailored and deployed at each respective business unit commences amortisation when those improved functionalities are
available for use (when the ERP is implemented at the respective business unit).
Impairment
Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible
assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are
identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately
identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs.
The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than
the carrying amount, an impairment loss is recognised immediately in the Group income statement.
Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined if no impairment loss had been recognised in prior years.
Property, plant and equipment is shown at cost less subsequent depreciation and impairment, except for land, which is shown at cost
less impairment. Cost includes expenditure that is directly attributable to the acquisition of the items after the deduction of trade
discounts and rebates.
Items of property, plant and equipment are depreciated over their estimated useful lives to any estimated residual value, using the
following rates:
Freehold property
2.0% to 8.0%
Leasehold property
Lower of useful economic life or lease term
Plant and equipment
6.6% to 33.3%
Aircraft airframes
2%
Major strategic aircraft spares are classified within property, plant and equipment. Aircraft assets, including spares, are disaggregated
into separate components where the components have differing useful lives with the value of each rotable component being measured
at the cost of replacement or overhaul of the component and the remaining value of the asset being attributed to the airframe
component.
Depreciation is provided on a straight-line basis, or in the case of certain aircraft components on an hours flown basis, to write off the
cost of PPE over the estimated useful lives to their estimated residual value (reassessed at each financial year end).
Subsequent expenditure on the replacement or overhaul of aircraft components is capitalised with the carrying value of the part replaced
being written off. Subsequent expenditure on maintenance which enhances the performance of aircraft airframes is capitalised whilst
expenditure on replacing elements of aircraft airframes is expensed. Components of owned aircraft which are maintained under Power-
by-the-hour maintenance arrangements are not depreciated with the associated payments to the maintenance provider instead being
expensed as incurred, as the residual value of the asset is deemed to be equivalent to the cost of the asset. Any additional payments
made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as
an expense or as income at the time at which they are incurred or received.
The useful economic life of aircraft is based on management\u2019s estimate of how long the aircraft will continue to be operated in the same
manner or a similar manner, typically not exceeding 30 years. Where the Group acquires aircraft which have already been used, and may
already exceed the typical useful economic life, an individual assessment of useful economic life is performed.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale. Qualifying assets include both internally generated intangible assets and
property, plant and equipment.
To the extent that variable rate borrowings are used to finance a qualifying asset and are hedged in an effective cash flow hedge of
interest rate risk, the effective portion of the derivative is recognised in Other Comprehensive Income and reclassified to the Income
Statement when the qualifying asset impacts profit or loss. To the extent that fixed rate borrowings are used to finance a qualifying
asset and are hedged in an effective fair value hedge of interest rate risk, the capitalised borrowing costs reflect the hedged interest rate.
For the year ended 31 March 2026, the average capitalisation rate of borrowing costs was 3.9% (2025: 4.0%).
All other borrowing costs are recognised in the Income Statement in the period in which they are incurred.
Impairment
For property, plant and equipment the Group performs impairment testing where indicators of impairment are identified. Impairment
testing is performed at the individual asset level. Where an asset does not generate cash flows that are separately identifiable from other
assets, the Group estimates the recoverable amount of the CGU to which the asset belongs.
The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the
carrying amount, an impairment loss is recognised immediately in the Group income statement.
Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined if no impairment loss had been recognised in prior years.
For all leases in which the Group is a lessee (other than those meeting the criteria detailed below), the Group recognises a right of use
asset and corresponding lease liability at commencement of the lease.
The lease liability is the present value of future lease payments discounted at the rate implicit in the lease, if available, or the applicable
incremental borrowing rate. The incremental borrowing rate is determined at lease inception based on a number of factors including
asset type, lease currency and lease term. Lease payments include fixed payments and variable lease payments dependent on an index
or rate, initially measured using the index or rate at the commencement date. The lease term reflects any extension or termination options
that the Group is reasonably certain to exercise.
The lease liability is subsequently measured at amortised cost using the effective interest rate method, with interest on the lease liability
being recognised as a finance expense in the income statement. The lease liability is remeasured, with a corresponding adjustment to
the right of use asset, if there is a change in future lease payments, for example resulting from a rent review, change in a rate/index or
change in the Group\u2019s assessment of whether it is reasonably certain to exercise an extension, termination or purchase option.
The right of use asset is initially recorded at cost, being equal to the lease liability, adjusted for any initial direct costs, lease payments
made prior to commencement date, lease incentives received and any dilapidation costs. Depreciation of right of use assets is
recognised as an expense in the income statement on a straight-line basis over the shorter of the asset\u2019s useful life or expected term of
the lease.
Right of use assets arising from sale and leaseback transactions are measured at the proportion of the previous carrying amount of the
asset that relates to the right of use retained by the Group. Gains arising on sale and leaseback transactions are recognised to the extent
that they relate to the rights transferred to the buyer-lessor whilst losses arising on sale and leaseback transactions are recognised in full.
Right of use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable, with the impairment expense being recognised in the income statement. Where a lease is terminated early, any
termination fees or gain or loss relating to the release of right of use asset and lease obligation are recognised as a gain or loss through
the income statement.
Payments in respect of short-term leases not exceeding 12 months in duration or low-value leases are expensed on a straight-line basis
to the income statement as permitted by IFRS 16, \u2018Leases\u2019.
As a lessor, the Group classifies lessor arrangements as finance or operating leases. Leases are classified as finance leases when
the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as
operating leases.
Amounts due from lessees under a finance lease are held on the statement of financial position as a financial asset at an amount equal
to the Group\u2019s net investment in the lease. The finance lease payments received are treated as finance income and a repayment of
principal including initial direct costs. Finance income is allocated over the lease term, with the gross receivable being reviewed for
impairment on a regular basis.
The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment. 2
Inventory is valued at the lower of cost and net realisable value, being the estimated selling price of the assets in the ordinary course of
business less estimated costs of completion and costs of sale. In the case of finished goods and work in progress, cost comprises direct
material and labour and an appropriate proportion of overheads. Certain purchases of inventory may be subject to cash flow hedges for
foreign exchange risk. The initial cost of hedged inventory is adjusted by the associated hedging gain or loss transferred from the cash
flow hedge reserve (\u201cbasis adjustment\u201d). Inventory is valued using a first-in, first-out (\u2018FIFO\u2019) basis.
Spare parts that are consumed in the sale of goods or in the rendering of services are classified as inventory.
Trade and other receivables
Trade receivables are measured at amortised cost. Other receivables are generally measured at amortised cost as they are held within a
business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the
principal amount outstanding. An immaterial amount of other receivables are held at fair value through profit and loss. The measurement
basis is disclosed in note 21.
Debt factoring
The Group engages in factoring of trade receivables in relation to certain non-UK operations of its Aviation sector as part of its working
capital management arrangements. Under these arrangements, the Group transfers the rights to receive factored receivables to the
factor in exchange for cash. The Group does not retain late payment or credit risk, and therefore trade receivables are not recognised
under the applicable contracts. Any cash received from customers under these contracts is received as agent and transferred directly to
the debt factoring counterparty.
Contract assets and liabilities
Contract assets represent amounts for which the Group has a conditional right to consideration in exchange for goods or services that
the Group has transferred to the customer. Contract liabilities represent the obligation to transfer goods or services to a customer for
which consideration has been received, or consideration is due, from the customer.
Payment terms are set out in the contract and reflect the timing and performance of service delivery. For substantially all contracts the
payment terms are broadly in line with expected satisfaction of performance obligations, and therefore recognition of revenue. Contract
assets or liabilities arise on short term timing differences or in those more limited instances where payment terms do not reflect timing
and performance of service delivery. In such cases, consideration is given to whether the contract includes a significant financing
component with appropriate accounting.
Provisions for expected credit losses
Trade receivables, contract receivables and amounts due from related parties include a provision for expected credit losses. Provisions
for expected credit losses are measured at an amount equal to lifetime expected credit losses, estimated by reference to past
experience and relevant forward-looking factors.
Costs of obtaining a contract
Directly attributable costs to obtain a contract with a customer that the Group would not have incurred if the contract had not been won
are recognised as an asset and amortised on a straight-line basis. Costs to obtain a contract that would have been incurred regardless of
whether the contract was won or lost are recognised as an expense when incurred.
Costs to fulfil a contract
Costs to fulfil a contract which do not fall within the scope of another standard are recognised under IFRS 15 as an asset and amortised
on a straight-line basis when they meet all of the following criteria:
(i) the costs relate directly to a contract or to an anticipated contract that can be specifically identified;
(ii) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance
obligations in the future; and
(iii) the costs are expected to be recovered.
Costs of recruiting or training staff are expensed as incurred.
Group cash and cash equivalents consist of cash at bank and cash in hand, together with short-term deposits with an original maturity of
three months or less and money market funds. Bank overdrafts that are repayable on demand and form an integral part of the Group\u2019s
cash management are treated as cash equivalents for the purpose of the cash flow statement. In the statement of financial position such
overdrafts are presented as current bank and other borrowings.
Cash and cash equivalents are classified as financial assets held at amortised cost and bank overdrafts are classified as financial
liabilities held at amortised cost.
Trade and other creditors are measured at amortised cost.
A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation as a result
of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be
reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an appropriate
discount rate.
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring
has either commenced or has been publicly announced. Future operating costs are not provided for.
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than
the unavoidable cost of meeting its obligations under the contract. Onerous contract provisions are recognised after impairment of any
assets directly related to the onerous contract. A provision for warranties is recognised on completed contracts and disposals when
there is a realistic expectation of the Group incurring further costs.
Provisions for onerous revenue contracts are recorded when it becomes probable that total remaining contract fulfilment costs will
exceed total remaining revenue not yet recognised. Provisions for losses on contracts are recognised after impairment of any assets
directly related to fulfilling the loss-making contract. Losses are determined on the basis of estimated results on completion of contracts
and are updated regularly.
A provision for the contractual maintenance, overhaul and repair requirements of right of use aircraft and specific associated aircraft
components arising from return condition obligations in aircraft lease contracts is recognised as the obligation to perform contractual
maintenance arises with each hour flown. Where lease contracts contain contractual penalties in the event that the Group returns leased
aircraft in a condition that does not meet the contractual return condition obligation, the associated provision is measured at the lower of
the restoration cost and the detriment penalty in the lease. When maintenance of a leased aircraft component is performed, if the
component\u2019s remaining flying hours are greater than the return condition outlined in the lease contract then a leasehold improvement
asset is recognised in proportion to the excess flying hours above the contractual return condition. Maintenance provisions are not
recognised in respect of aircraft components which are maintained under Power-by-the-hour maintenance arrangements, instead the
associated payments to the maintenance provider are expensed as incurred. Any additional payments made to or received from
maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income
at the time at which they are incurred or received.
Financial assets and liabilities at amortised cost
Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie s
and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual
cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding.
Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the
provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking
factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the
Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the
Group assesses credit risk.
Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial
liabilities held at amortised cost.
Derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value.
The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or
liabilities or unrecognised firm commitments.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement,
together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify
as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the
underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives
that are carried at fair value through profit or loss are recorded in the income statement.
Fair value measurement
The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the year-end date. Fair value measurements are used on a recurring basis except where
used in the acquisition of assets and liabilities through a business combination.
The fair values of derivative financial instruments are determined by the use of valuation techniques based on assumptions that are
supported by observable market prices or rates. The fair values of non-financial assets and liabilities are based on observable market
prices or rates.
The carrying values of financial assets and liabilities which are not held at fair value in the Group statement of financial position are
assumed to approximate to fair value due to their short-term nature, with the exception of fixed rate bonds.
There have been no changes to the valuation techniques used during the year.
Shares held by the Babcock Employee Share Trust (\u2018BEST\u2019)
In previous periods, the Group has financed the BEST to purchase already issued shares in the market with these shares being utilised to
satisfy outstanding awards under the PSP and the DBP as such awards vest and are exercised.
As the Babcock Employee Share Trust is consolidated in the Group\u2019s financial statement, acquisition of shares by the Trust are accounted in
the Group consolidated accounts consistent with Treasury shares with the cost of acquisition deducted from equity.
Treasury shares
In the reporting period, the Group announced a \u00a3200 million share buyback exercise which has resulted in shares being acquired as
Treasury shares. These shares are held by the Group directly rather than through the Trust. Own shares acquired as Treasury shares are
recorded at cost and deducted from equity.
Shares are purchased on the open market through brokers with subsequent cash settlement resulting in a timing difference between the
cost recognised through equity and the amount recognised in the cash flow statement as at 31 March 2026 with the difference held in
other creditors and accruals.
Treasury shares are, periodically, transferred to the BEST for the purpose of being used to satisfy the Group\u2019s executive share plans and
to MUFG to satisfy the Colleague Share Plan.
In accordance with UK company law, as shares are issued from the Trust to employees, the amount acquired is recycled from Treasury
Shares to Retained Earnings at the weighted average price of shares held in treasury at the point of transfer. A separate Treasure Shares
reserve is not shown in the Group\u2019s Statement of Financial Position or Statement of Changes in Equity and instead is recorded as part of
Retained Earnings.
The Group operates a number of pension schemes. The schemes are generally funded through payments to trustee-administered funds,
determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined benefit plan
is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or
more factors such as age, years of service and compensation. A defined contribution plan is a pension plan under which the Group pays
fixed contributions into a separate entity.
Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement as incurred.
For defined benefit pension schemes, the cost of providing benefits is determined using the projected unit credit actuarial valuation
method. The service cost and associated administration costs of the Group\u2019s pension schemes are charged to operating profit. In
addition, a retirement benefit interest charge on the net pension deficit or interest credit on the net pension surplus is included in the
income statement as a finance cost or finance income, respectively. Actuarial gains and losses are recognised directly in equity through
the statement of comprehensive income so that the Group\u2019s statement of financial position reflects the IAS 19 measurement of the
schemes\u2019 surpluses or deficits at the reporting date.
Net debt, including loans to joint ventures and associates and lease receivables is an alternative performance measure of the Group and
consists of the total of loans, including the interest rate and foreign exchange derivatives which hedge the loans, bank overdrafts, cash
and cash equivalents, loans to joint ventures and associates, lease receivables and lease obligations. The Group\u2019s key performance
indicators exclude certain lease obligations in order to more closely align with the Group\u2019s debt covenants which are prepared on a
pre-IFRS 16 basis and the Financial review presents net debt and related performance measures including and excluding certain lease
obligations for this purpose.
A contingent liability is a possible obligation arising from past events whose existence will be confirmed only on the occurrence or
non-occurrence of uncertain future events outside the Group\u2019s control, or a present obligation that is not recognised because it is not
probable that an outflow of economic benefits will occur or the value of such outflow cannot be measured reliably. The Group does not
recognise contingent liabilities in its statement of financial position \u2013 such matters are only recognised in the statement of financial
position when the obligation rises from possible to probable and the outflow of economic benefits becomes probable and can be
measured reliably.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-475": { "value": "Basis of preparation Babcock International Group PLC (the parent and ultimate parent company) is a public company limited by shares incorporated in the United Kingdom under the Companies Act. Babcock International Group PLC is listed on the London Stock Exchange and is incorporated and domiciled in England, UK. Babcock is an international defence company providing support and product solutions to enhance our customers\u2019 defence capabilities and critical assets. We provide through-life technical and engineering support for our customers\u2019 assets, delivering improvements in performance, availability and programme cost. We deliver these critical services to defence and civil customers, including engineering support to naval, land, air and nuclear operations, frontline support, specialist training and asset management. We design and manufacture a range of defence and specialist equipment, from naval ships and weapons handling systems to liquid gas handling systems. We also provide integrated, technology-enabled solutions to our defence customers in areas such as secure communications, electronic warfare and air defence. The financial statements have been prepared in accordance with United Kingdom adopted International Accounting Standards, and the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost basis, except for certain financial instruments that have been measured at fair value. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-6": { "value": "Babcock International Group PLC", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-473": { "value": "Babcock International Group PLC", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-5": { "value": "listed", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-7": { "value": "England", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-514": { "value": "The financial statements have been prepared in accordance with United Kingdom adopted International Accounting Standards, and the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost basis, except for certain financial instruments that have been measured at fair value. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-476": { "value": "Going concern The Directors have undertaken reviews of the business financial forecasts, in order to assess whether the Group has adequate resources to continue in operational existence for the foreseeable future and as such can continue to adopt the going concern basis of accounting. For assessing going concern, the Board considered the 12-month period from the date of signing the Group\u2019s financial statements for the year ended 31 March 2026. The annually prepared budgets and forecasts are compiled using a bottom-up process, aggregating those from the individual business units into sector-level budgets and forecasts. Those sector submissions and the consolidated Group budget and forecasts are then reviewed by the Board and used to monitor business performance. The Board considered the budgets alongside the Group\u2019s available finances, strategy, business model, market outlook and principal risks. The Group uses a Risk Management Framework to identify and manage risks and these risks are considered in making the going concern assessment including through incorporation in downside modelling. The Board also considered the mitigation measures being put in place and potential for further mitigation. In making its\u2019 going concern assessment, the Board\u2019s view is supported by: \u2022 The Group\u2019s diverse portfolio of businesses based on well-established market positions, focused on design, manufacture, engineering support and training for complex and critical assets and infrastructure across naval, land, air and nuclear domains. In FY26, 74% of Group sales were defence-related and 26% civil; \u2022 a geographically diverse business with a high proportion of sales to governments and other major prime defence contractors. In FY26, 70% of sales were to defence and civil customers in the UK, and 30% were international; \u2022 long-term visibility of sales and future sale prospects through an order backlog of \u00a39.8 billion as at 31 March 2026, including incumbent positions on major defence programmes; and \u2022 market positions underpinned by a highly skilled workforce, intellectual property assets and proprietary know-how, which are safeguarded and developed for the future by customer and Group-funded investment. a) Available financing As at 31 March 2026, net debt excluding leases was \u00a3(22.7) million and the Group therefore had liquidity headroom of \u00a31.4 billion, including net cash of \u00a30.7 billion and undrawn facilities of \u00a30.7 billion. These facilities are considered more than adequate to meet current and other liabilities as they fall due, and support the Group\u2019s negative working capital position largely arising from securing customer advances ahead of contract work starting. All of the Group\u2019s facilities mature during the viability period, and therefore, in assessing liquidity in future periods, we have assumed that it will be possible to re-finance the Group\u2019s facilities at current market rates. As of June 2026, the Group\u2019s facilities and bonds totalling \u00a31.4 billion were as follows: \u2022 \u00a3600 million revolving credit facility (RCF) maturing July 2031 \u2022 \u00a3300 million bond maturing 5 October 2026 \u2022 \u20ac550 million bond, hedged at \u00a3493 million, maturing 13 September 2027 \u2022 One overdraft facility totalling \u00a350 million The RCF is the only facility with covenants attached, which are applicable if the Group has a rating of less than BBB. If applicable, the key covenant ratios are (i) net debt to EBITDA (gearing ratio) of 3.5x (ii) and EBITDA to net interest (interest cover) of 4.0x. In the event these become applicable, they are measured twice per year \u2013 on 30 September and 31 March. The RCF lenders are fully committed to advance funds under the RCF to the Group, provided that the Group has satisfied the usual ongoing undertakings, and the creditworthiness of the Group\u2019s relationship banks is closely monitored. Based on their credit ratings, we have no credit concerns with our relationship banks. Given the importance of the RCF to the Group\u2019s liquidity position, our assessments of going concern and viability have tested the Group\u2019s gearing ratio, interest cover and liquidity headroom throughout the period under review up to their current maturity dates and to the end of the five-year plan, assuming renewal of the RCF with consistent covenants to those currently applied.
b) Base case scenario
The base case budgets and forecasts show significant levels of headroom against both financial covenants, and liquidity headroom based on
the current committed facilities outlined above. That base case largely assumes we maintain our incumbent programme positions if re-let
during the five-year period, with margin recovery if they are currently below the Group average. Many opportunities available to the Group,
where we do not yet have high conviction of securing the work, have been excluded from the base case to maintain a degree of caution.
The base case assumes no further reshaping of the business portfolio, so it is not dependent upon any future cash proceeds from
divestments. It also reflects pension deficit contributions in excess of income statement charges of around \u00a325 million in each period of
the model.
c) Reverse stress testing of the base case
To assess the level of headroom within the available facilities, a reverse stress test was performed to see what level of performance
deterioration against the base case budgets and forecasts (in both EBITDA and net debt) was required to challenge covenant levels.
Of the remaining measurement points within the available facility period, the lowest required reduction in forecast EBITDA to hit the gearing
covenant level was \u00a3376 million and the lowest net debt increase was 1,260%. The lowest required reduction in forecast EBITDA to hit the
interest cover covenant was \u00a3308 million. Given the mitigating actions that are available and within management\u2019s control, such movements
are not considered plausible.
d) Severe but plausible downside scenarios
The Directors also considered a series of severe but plausible downside scenarios which are sensitivities run against the base case budget
and forecasts for the duration of the assessment period. These sensitivities include \u2013 separately \u2013 a reduction in bid pipeline closure
(business winning), a deterioration in large programme performance across the Group, a deterioration in the Group\u2019s working capital position,
and a regulator-imposed cessation in flying two of the largest aircraft fleets in the Group.
All of these separate scenarios showed compliance with the financial covenants throughout the period. As with any company or group, it
would be possible, however unlikely, to model individual risks or combinations of risks that would threaten the financial viability of the Group.
The Board has not sought to model events where it considers the likelihood of such events not to be plausible. In preparing a combined
severe but plausible (SBP) downside case, the Board considered the feed of individual risks from the sectors covering the above sensitivities.
Overall there were c.90 profit and cash flow risks identified.
A simple aggregation of all of these risks is not considered plausible as the Group operates businesses and contracts which run largely
independently of each other, albeit with a relatively small number of customers within each geography.
These identified risks were seen as \u2018sector independent\u2019 (ie there is no direct read across from one sector to another). The Board decided to
reduce the aggregation of the risks by 25% to reflect the implausibility of all such risks fully crystallising within the same period.
Conclusion
After undertaking the assessment described above, the Directors, at the time of approving the financial statements, have a reasonable
expectation that the Company and the Group have adequate financial resources to continue in operational existence for the foreseeable
future. As such, the consolidated financial statements have been prepared on a going concern basis. The Directors do not believe there are
any material uncertainties to disclose in relation to the Group\u2019s ability to continue as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-477": { "value": "
New and amended standards adopted by the Group
The following standards and amendments to IFRSs became effective for the annual reporting period beginning on 1 April 2025 and did not
have a material impact on the consolidated financial statements:
\u2022
Amendments to IAS 21 \u2013 Lack of Exchangeability
", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-542": { "value": "New and amended standards adopted by the Group The following standards and amendments to IFRSs became effective for the annual reporting period beginning on 1 April 2025 and did not have a material impact on the consolidated financial statements: \u2022 Amendments to IAS 21 \u2013 Lack of Exchangeability New IFRS accounting standards, amendments and interpretations not yet adopted The Group has not early adopted any other amendment, standard or interpretation that has been issued but is not yet effective. It is expected that these standards and amendments will be adopted on the applicable effective date. The following new or amended IFRS accounting standards, amendments and interpretations not yet adopted are not expected to have a significant impact on the Group: \u2022 IFRS 18 \u2013 Presentation and Disclosures in Financial Statements: Replaces IAS 1 and makes minor changes to IAS 8, IFRS 7, IAS 7 and IAS 33. Introduces new requirements regarding specific categories and subtotals in the Group Income Statement and further disclosures on management performance measures (MPMs) and disclosures aimed at improving aggregation and disaggregation. IFRS 18 was formally endorsed by the UK endorsement board in December 2025 and is applicable for annual reporting periods beginning on or after 1 January 2027 with earlier adoption permitted. The Group does not intend to adopt this standard early and therefore this standard is expected to be first presented within the Annual Report for the period ended 31 March 2028. It is anticipated that the application of IFRS 18 may have an impact on the presentation and disclosure of the Group\u2019s consolidated financial statements from the point of adoption. \u2022 IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures: IFRS 19 is only permitted to be applied by subsidiaries with no public accountability. As the Group is not a subsidiary, application of the standard is not permitted and therefore will have no impact on the Group\u2019s Consolidated Financial Statements. IFRS 19 is applicable for annual reporting periods beginning on or after 1 January 2027 with earlier adoption permitted (subject to formal endorsement by the UK endorsement board). \u2022 Amendments to IFRS 7 and IFRS 9 - Classification and Measurement of Financial Instruments & Contracts referencing nature- dependant electricity: Effective from 1 January 2026 and not assessed to have a material impact on the Group\u2019s Income Statement or Statement of Financial Position. \u2022 Annual improvements to IFRS accounting standards (volume 11): Effective from 1 January 2026 and not assessed to have a material impact on the Group\u2019s Income Statement or Statement of Financial Position. ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-478": { "value": "
New IFRS accounting standards, amendments and interpretations not yet adopted
The Group has not early adopted any other amendment, standard or interpretation that has been issued but is not yet effective. It is expected that
these standards and amendments will be adopted on the applicable effective date. The following new or amended IFRS accounting standards,
amendments and interpretations not yet adopted are not expected to have a significant impact on the Group:
\u2022
IFRS 18 \u2013 Presentation and Disclosures in Financial Statements: Replaces IAS 1 and makes minor changes to IAS 8, IFRS 7, IAS 7 and
IAS 33. Introduces new requirements regarding specific categories and subtotals in the Group Income Statement and further disclosures
on management performance measures (MPMs) and disclosures aimed at improving aggregation and disaggregation.
IFRS 18 was formally endorsed by the UK endorsement board in December 2025 and is applicable for annual reporting periods beginning
on or after 1 January 2027 with earlier adoption permitted. The Group does not intend to adopt this standard early and therefore this
standard is expected to be first presented within the Annual Report for the period ended 31 March 2028.
It is anticipated that the application of IFRS 18 may have an impact on the presentation and disclosure of the Group\u2019s consolidated financial
statements from the point of adoption.
\u2022 IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures: IFRS 19 is only permitted to be applied by subsidiaries with no public accountability. As the Group is not a subsidiary, application of the standard is not permitted and therefore will have no impact on the Group\u2019s Consolidated Financial Statements. IFRS 19 is applicable for annual reporting periods beginning on or after 1 January 2027 with earlier adoption permitted (subject to formal endorsement by the UK endorsement board). \u2022 Amendments to IFRS 7 and IFRS 9 - Classification and Measurement of Financial Instruments & Contracts referencing nature- dependant electricity: Effective from 1 January 2026 and not assessed to have a material impact on the Group\u2019s Income Statement or Statement of Financial Position. \u2022 Annual improvements to IFRS accounting standards (volume 11): Effective from 1 January 2026 and not assessed to have a material impact on the Group\u2019s Income Statement or Statement of Financial Position. ", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-480": { "value": "Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiary undertakings together with its share of joint ventures\u2019 and associates\u2019 results. Intra-Group transactions, balances, income and expenses are eliminated on consolidation. (a) Subsidiaries A subsidiary is an entity controlled by the Group. An entity is controlled by the Group regardless of the level of the Group\u2019s equity interest in the entity, when the Group is exposed or has rights to variable returns from its involvement with the entity and has the ability to impact those returns through its power over the entity. In determining whether control exists, the Group considers all relevant facts and circumstances to assess its control over an entity such as contractual commitments and potential voting rights held by the Group if they are substantive. Subsidiaries are fully consolidated from the date control has been transferred to the Group and de-consolidated from the date control ceases. Where control ceases, the results for the year up to the date of relinquishing control or closure are analysed as continuing or discontinued operations. (b) Joint ventures and associates Associates are those entities over which the Group exercises its significant influence when it has the power to participate in the financial and operating policy decisions of the entity but it does not have the power to control or jointly control the entity. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-515": { "value": "(a) Subsidiaries A subsidiary is an entity controlled by the Group. An entity is controlled by the Group regardless of the level of the Group\u2019s equity interest in the entity, when the Group is exposed or has rights to variable returns from its involvement with the entity and has the ability to impact those returns through its power over the entity. In determining whether control exists, the Group considers all relevant facts and circumstances to assess its control over an entity such as contractual commitments and potential voting rights held by the Group if they are substantive. Subsidiaries are fully consolidated from the date control has been transferred to the Group and de-consolidated from the date control ceases. Where control ceases, the results for the year up to the date of relinquishing control or closure are analysed as continuing or discontinued operations. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-555": { "value": "(b) Joint ventures and associates Associates are those entities over which the Group exercises its significant influence when it has the power to participate in the financial and operating policy decisions of the entity but it does not have the power to control or jointly control the entity. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment. 2 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-543": { "value": "(b) Joint ventures and associates Associates are those entities over which the Group exercises its significant influence when it has the power to participate in the financial and operating policy decisions of the entity but it does not have the power to control or jointly control the entity. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment. 2 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-517": { "value": "(b) Joint ventures and associates Associates are those entities over which the Group exercises its significant influence when it has the power to participate in the financial and operating policy decisions of the entity but it does not have the power to control or jointly control the entity. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment. 2 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-481": { "value": "Materiality Various disclosures make reference to items considered as material or immaterial to the financial statements. The Group considers information to be material if omitting it or misstating it could influence decisions that users make on the basis of the financial information provided. Materiality is considered from both a quantitative and qualitative factor perspective. In addition to subsequent specific references to materiality, and in compliance with IFRS, certain disclosures have not been provided where the information resulting from that disclosure is not material. ", "dimensions": { "concept": "babcockinternational:DescriptionOfAccountingPolicyForMateriality", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-516": { "value": "Critical accounting estimates and judgements In the course of preparation of the financial statements, judgements and estimates have been made in applying the Group\u2019s accounting policies that have had a material effect on the amounts recognised in the financial statements. The application of the Group\u2019s accounting policies requires the use of estimates and the inherent uncertainty in certain forward-looking estimates may result in a material adjustment to the carrying amounts of assets and liabilities in the next financial year. Critical accounting estimates are subject to continuing evaluation and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable in light of known circumstances. Critical accounting estimates and judgements in relation to these financial statements are considered below: (a) Critical accounting judgements Critical accounting judgements, apart from those involving estimations, that are applied in the preparation of the consolidated financial statements are discussed below. Detail of the Group\u2019s key judgements involving estimates are included in the Key sources of estimation uncertainty section. (i) Acting as principal or agent A number of the Group\u2019s contracts include promises in relation to procurement activity undertaken on behalf of customers at low or nil margin, sub-contractor arrangements, and other pass-through costs. Management is required to exercise judgement on these revenue streams in considering whether the Group is acting as principal or agent. This is based on an assessment as to whether the Group controls the relevant goods or services under the performance obligations prior to transfer to customers. Factors that influence this judgement include the level of responsibility the Group has under the contract for the provision of the goods or services, the extent to which the Group is incentivised to fulfil orders on time and within budget, either through gain share arrangements or KPI deductions in relation to the other performance obligations within the contract, and the extent to which the Group exercises responsibility in determining the selling price of the goods and services. Taking all factors into consideration, the Group then comes to a judgement as to whether it acts as principal or agent on a performance obligation-by-performance obligation basis with both principal and agent conclusions being reached across the Group\u2019s portfolio of revenue arrangements. Any changes in this judgement would not have a material impact on profit, although there may be a material impact to revenue and operating costs. (ii) Determining the groups of cash generating units to which goodwill is allocated IAS 36 requires that, for the purpose of subsequent impairment testing, goodwill acquired in business combinations be allocated to cash generating units (\u2018CGUs\u2019) or groups of CGUs expected to benefit from the synergies of the combination. Such CGUs or groups of CGUs shall represent the lowest level at which goodwill is monitored for internal management purposes and shall not be larger than an operating segment. This determination is generally straightforward and factual, however in some cases judgement is required. The Group has identified four operating segments \u2013 Aviation, Land, Marine and Nuclear \u2013 and in the case of Aviation, Marine and Nuclear, goodwill is allocated and monitored at the operating segment level (with these three operating segments each also comprising a group of CGUs). Although Land is considered a single operating segment, goodwill is separately allocated and monitored between the Africa business (as one group of CGUs) and the remainder of Land (as a second group of CGUs). This distinction exists due to historic assessments of the Group\u2019s operating segments and the fact that previous Africa business combinations were only anticipated to provide synergies and benefits across the Africa CGUs. Other territories may represent separate CGUs or groups of CGUs but are neither separate operating segments nor is goodwill separately allocated or monitored at these territory levels. Over time management reviews the basis upon which goodwill is allocated to ensure it remains appropriate as businesses are acquired and divested and reporting structures change, including how information is reported to the Chief Operating Decision Maker. If there was a change in this judgement this could result in a material adjustment to goodwill. Further detail is included in notes 3 and 10. (b) Key sources of estimation uncertainty The key sources of estimation uncertainty at the reporting period end that may result in significant risk of material adjustment to the carrying amount of assets and liabilities within the next financial year are set out below: (i) Revenue and profit recognition The following represent the notable assumptions impacting upon revenue and profit recognition as a result of the Group\u2019s contracts with customers: \u2022 Stage of completion & costs to complete \u2013 The Group\u2019s revenue recognition policies require management to make an estimate of the cost to complete for long-term contracts. Management estimates outturn costs on a contract-by-contract basis and estimates are carried out by suitably qualified and experienced personnel. Estimates of cost to complete include assessment of contract contingencies arising out of technical, commercial, operational and other risks. The assessments of all significant contract outturns are subject to review and challenge, and judgements and estimates are reviewed regularly throughout the contract life based on latest available information with adjustments made where necessary. As contracts near completion, often less judgement is required to determine the expected outturn. The most significant estimate of contract outturn relates to the Type 31 programme as outlined below. \u2022 Variable consideration \u2013 the Group\u2019s contracts are often subject to variable consideration including performance-based penalties and incentives, gain/pain share arrangements and other items. Variable consideration is added to the transaction price only to the extent that it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the underlying uncertainty is resolved. \u2022 Inflation \u2013 The level to which the Group\u2019s revenue and cost for each contract will be impacted by inflation is a key accounting estimate, as this could cause the revenue and cost of contract delivery to be greater than was expected at the time of contracting. The Group\u2019s contracts are exposed to inflation due to rising employment costs, as well as increased costs of raw materials. The Group endeavours to include cost recovery mechanisms or index-linked pricing within its contracts with customers in order to mitigate any inflation risk arising from increasing employment and raw material costs. The above assumptions all impact upon each individual contract to varying extents depending on the risk profile of the contract and the individual contract terms and conditions. As such sensitivities to these assumptions are not provided as to do so is not considered practicable. Type 31 contract estimates The contract to produce 5 Type 31 frigates was won under competitive tender in 2019, based on Babcock\u2019s Arrowhead 140 design. The contract is important in providing access to an expected pipeline of Type 31 work and developing our Arrowhead 140 design for opportunities overseas. Although the contract contained certain escalation clauses, it provided limited protection from the macroeconomic changes of recent years relating to Brexit, Covid, raw material prices and UK labour shortages, which have significantly increased our costs. This has resulted in the contract being loss-making, together with increases in estimated costs due to the maturing of the design and the forecast cost of labour. As we finish structural completion of ship one, the bulk of the remaining work now relates to outfitting and commissioning. During the outfitting stage we have experienced higher than expected levels of rework as a result of changes to the design and the long-term impacts of out-of-sequence build activity earlier in the programme. Whilst the number of such rework events is not entirely unexpected, the work is being performed in the later stages of completion and therefore is more complex and more costly. The ability to increase levels of programme productivity through full enablement of production tasks has also been impacted. As the build of ship two is close behind ship one, there is also some cross over in the design-related work necessary to this ship. With ships three and four still in the early construction stages, the extent of impact on these and future vessels is comparatively reduced. As a consequence, we have performed an engineering maturity review, and we have updated our financial estimates to complete the programme. These re-estimates not only cover the production costs of material and personnel, but also an increased programme risk contingency. This is reflected in a charge on the contract at the year-end of \u00a3140.0 million for the revised costs to complete delivery of the Type 31 design and build contract which is fully recognised in FY26, but the cash costs of which will be incurred over the remainder of the programme. Within the \u00a3140.0 million charge, \u00a395.5 million is recognised as a revenue reversal in FY26 (with a corresponding increase in contract liabilities) and the balance increases the contract loss provision. The estimation process has been extensive given the new information available. The key steps are set out below but this year has involved further and deeper analysis of operational data, the results of pilot schemes, input from external experts and the customer, consideration of alternative assumptions and retrospective review of previous assumptions. Multiple review processes were held between Programme, Sector and Group management, culminating in dedicated reviews with the Audit Committee which focused on the key assumptions around productivity, rework, labour costs, schedule and risk. These reviews involved direct challenge of key representatives from the contract team, assessment of the process followed and independent scrutiny of the available evidence for key assumptions. Following the estimation process we have reassessed and updated the disclosure of major sources of estimation uncertainty set out below. Determining the contract outturn, and therefore revenue and onerous contract provision recognised, requires assumptions and complex judgements to be made about the future performance of the contract. The level of uncertainty in the estimates made in assessing the outturn is linked to the complexity of the underlying contract. The estimates made in assessing the outturn are set out below, along with the related estimation methods and data sources. a) The number of production hours \u2013 which requires estimation of a standard level of hours for manufacturing, structural and outfitting activities, determined with reference to previous experience of comparable programmes and industry data where available. The estimation of the time taken to improve to this standard level is also relevant, based on a detailed operational improvement programme and evidence from pilot work. The volume of activities is based on a detailed assessment of the Bill of Materials, supported by dedicated engineering software b) The ability to improve operational performance through quality and engineering improvements over the five ships \u2013 which requires actions to reduce re-work, particularly arising from engineering change c) The cost of labour \u2013 which is dependent on our ability to recruit, the mix of the workforce between permanent and contingent workers from the UK and overseas and the utilisation of semi-skilled and apprentice workers. A detailed resourcing plan is used to support this estimate d) The cost of bought-in parts and services through suppliers and sub-contractors \u2013 which includes the outcome of remaining procurement activity, the finalisation of areas of unagreed pricing and the agreement of discounts and incentive arrangements e) The number of hours required by support functions \u2013 primarily in engineering which requires effective management of production support and change requests. A detailed engineering maturity review has been performed to support this estimate f) The determination of non-incremental costs - which relate directly to fulfilling the contract and are therefore partially allocated to the contract to determine the loss provision, including facility and overhead costs g) The impact of inflation - on the contract price and costs to fulfil the contract, particularly in relation to labour which may be impacted by changes in the local, UK and overseas labour markets, competitor activity and government policy h) The achievement of the build schedule to completion and final acceptance \u2013 including the satisfaction of all contractual performance criteria. The schedule analysis is based on detailed modelling and the performance of multiple scenario analysis The cost estimation process has involved a number of key elements: \u2022 Regular governance at the Group level to monitor progress and enable support as required \u2022 Bottom-up costing at the activity level performed by individual business areas \u2022 Reassessment of risk based on the updated cost estimates, considering ranges of outcomes and probabilities \u2022 Input from functional specialists from across the Group \u2022 Development of financial models based on cost drivers, using actual data and other evidence to inform the forecast outturn \u2022 Detailed documentation of estimates made, including process followed, sources of evidence and basis for conclusions \u2022 Review and challenge at the Programme, Sector and Group levels, culminating in dedicated reviews with the Audit Committee The range of possible future outcomes in respect of assumptions made to determine the contract outturn could result in a material increase or decrease in revenue and the value of the onerous contract provision, and hence on the Group\u2019s profitability, in the next financial year. The estimates described above are by their nature inter-related for this programme and are unlikely to change with everything else constant. However, for illustrative purposes, we have provided sensitivities to certain isolated changes in key estimates on the basis that all other factors remain constant: \u2022 Production hours \u2013 which are impacted by production norms, rate of improvement and quality/engineering improvements (see a) and b) above). A 10% increase/decrease in production hours would increase/decrease the loss by \u00a329 million \u2022 Labour rate \u2013 which is impacted by our ability to recruit permanent staff, the mix of the workforce, ancillary costs and inflation (see c) and g) above). A 10% increase/decrease in the average labour rate would increase/decrease the loss by \u00a334 million \u2022 Schedule \u2013 which is impacted by various factors above. A 6-month delay beyond the current planning assumption would increase the loss by \u00a315 million Overall, with c.\u00a30.7 billion of estimated costs to go over the life of the contract, if actual costs were to differ from those assumed by 10%, the potential impact on the contract outturn could be c.\u00a370 million. Any increase in loss would cause a commensurate deterioration in the balance sheet through a combination of an increase to the onerous loss provision (note 20), reductions in contract assets (note 16) or increases in contract liabilities (note 18). To mitigate this, comparisons of actual contract performance and previous forecasts used to assess the contract outturn are performed regularly, with consideration given to whether any revisions to assumptions are required. The uncertainty over the contract outturn will reduce in the next financial year but there will be substantial activity and risk over the remaining years. In a major ship build programme of this nature, it is inherently possible that there may be changes in circumstances which cannot reasonably be foreseen at the present time. (ii) Defined benefit pension schemes obligations The Group\u2019s defined benefit pension schemes are assessed annually in accordance with IAS 19 and the valuation of the defined benefit pension obligations is sensitive to the inflation, discount rate, actuarial and life expectancy assumptions used. There is a range of possible values for the assumptions and small changes to the assumptions may have a significant impact on the valuation of the defined benefit pension obligations. In addition to the inflation, discount rate and life expectancy estimates, management is required to make an accounting judgement relating to the expected availability of future accounting surpluses under IFRIC 14. Further information on the key assumptions, sensitivities and judgements is included in note 25. (c) Other estimates which are not key sources of estimation uncertainty (i) The carrying value of goodwill Goodwill is tested annually for impairment, in accordance with IAS 36, Impairment of Assets (\u2018IAS 36\u2019). The impairment assessment is based on assumptions in relation to future cash flows expected to be generated by the groups of cash generating units to which goodwill is allocated, together with appropriate discounting of the cash flows. In both the current and prior years, we have not identified a key source of estimation uncertainty in respect of goodwill. The headroom across all identified groups of CGUs against which goodwill is allocated and monitored is such that, under all modelled sensitivities, no reasonably possible changes in assumptions could result in the complete elimination of the headroom. The key assumptions in estimating the carrying value of goodwill are discount rate, long-term growth rate and growth rate in the short-term cash flows. Inflation rates are incorporated into the impairment assessment through their inclusion within the growth rates in cash inflows and outflows and through the methodology by which discount rates are determined. Were inflation to impact upon all cash flows equally, an impairment assessment should be neutral to the impact of inflation. The Group has a number of protections and exposures to the impact of inflation across its portfolio of revenue arrangements and supply chain agreements resulting in an indirect impact of inflation on the impairment outturn. Further information on key assumptions and sensitivity analyses are included in note 10. (ii) Impact of climate change In preparing the Group financial statements, consideration has been given to the potential impact of climate change. Climate-related matters create a number of risks and opportunities for the Group. Climate-related matters are not considered to have a material impact on the Group\u2019s critical accounting judgements or key sources of estimation uncertainty. Climate-related matters primarily impact the Group through their potential impact on the Group\u2019s budgets and forecasts. Budgets and forecasts affect the current year financial statements through their impact on the following areas: \u2022 Going concern and viability of the Group; \u2022 Cash flow forecasts used in impairment assessments of including goodwill, intangible assets and property, plant & equipment; \u2022 Cash flow forecasts used in the Impairment assessments of financial assets; and \u2022 The assessed useful economic lives of the Group\u2019s non-current assets Revised budgets and forecasts, incorporating an estimated financial impact on the climate-related risks and opportunities have been modelled to understand the possible financial impact and the resilience to these sensitivities is the basis for why climate-related matters have been concluded to not have a material impact on the critical accounting judgements or key sources of estimation uncertainty. Whilst there is currently no significant short- to medium-term impact expected from climate change, the Group is aware of the ever-changing risks attached to climate change and will regularly assess these risks against judgements and estimates made in preparing the Group consolidated financial statements. ", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-479": { "value": "Critical accounting estimates and judgements In the course of preparation of the financial statements, judgements and estimates have been made in applying the Group\u2019s accounting policies that have had a material effect on the amounts recognised in the financial statements. The application of the Group\u2019s accounting policies requires the use of estimates and the inherent uncertainty in certain forward-looking estimates may result in a material adjustment to the carrying amounts of assets and liabilities in the next financial year. Critical accounting estimates are subject to continuing evaluation and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable in light of known circumstances. Critical accounting estimates and judgements in relation to these financial statements are considered below: (a) Critical accounting judgements Critical accounting judgements, apart from those involving estimations, that are applied in the preparation of the consolidated financial statements are discussed below. Detail of the Group\u2019s key judgements involving estimates are included in the Key sources of estimation uncertainty section. (i) Acting as principal or agent A number of the Group\u2019s contracts include promises in relation to procurement activity undertaken on behalf of customers at low or nil margin, sub-contractor arrangements, and other pass-through costs. Management is required to exercise judgement on these revenue streams in considering whether the Group is acting as principal or agent. This is based on an assessment as to whether the Group controls the relevant goods or services under the performance obligations prior to transfer to customers. Factors that influence this judgement include the level of responsibility the Group has under the contract for the provision of the goods or services, the extent to which the Group is incentivised to fulfil orders on time and within budget, either through gain share arrangements or KPI deductions in relation to the other performance obligations within the contract, and the extent to which the Group exercises responsibility in determining the selling price of the goods and services. Taking all factors into consideration, the Group then comes to a judgement as to whether it acts as principal or agent on a performance obligation-by-performance obligation basis with both principal and agent conclusions being reached across the Group\u2019s portfolio of revenue arrangements. Any changes in this judgement would not have a material impact on profit, although there may be a material impact to revenue and operating costs.
(ii) Determining the groups of cash generating units to which goodwill is allocated
IAS 36 requires that, for the purpose of subsequent impairment testing, goodwill acquired in business combinations be allocated to cash
generating units (\u2018CGUs\u2019) or groups of CGUs expected to benefit from the synergies of the combination. Such CGUs or groups of CGUs shall
represent the lowest level at which goodwill is monitored for internal management purposes and shall not be larger than an operating segment.
This determination is generally straightforward and factual, however in some cases judgement is required.
The Group has identified four operating segments \u2013 Aviation, Land, Marine and Nuclear \u2013 and in the case of Aviation, Marine and Nuclear,
goodwill is allocated and monitored at the operating segment level (with these three operating segments each also comprising a group
of CGUs).
Although Land is considered a single operating segment, goodwill is separately allocated and monitored between the Africa business (as one
group of CGUs) and the remainder of Land (as a second group of CGUs). This distinction exists due to historic assessments of the Group\u2019s
operating segments and the fact that previous Africa business combinations were only anticipated to provide synergies and benefits across
the Africa CGUs.
Other territories may represent separate CGUs or groups of CGUs but are neither separate operating segments nor is goodwill separately
allocated or monitored at these territory levels.
Over time management reviews the basis upon which goodwill is allocated to ensure it remains appropriate as businesses are acquired and
divested and reporting structures change, including how information is reported to the Chief Operating Decision Maker. If there was a change
in this judgement this could result in a material adjustment to goodwill. Further detail is included in notes 3 and 10.
(b) Key sources of estimation uncertainty
The key sources of estimation uncertainty at the reporting period end that may result in significant risk of material adjustment to the carrying
amount of assets and liabilities within the next financial year are set out below:
(i) Revenue and profit recognition
The following represent the notable assumptions impacting upon revenue and profit recognition as a result of the Group\u2019s contracts
with customers:
\u2022
Stage of completion & costs to complete \u2013 The Group\u2019s revenue recognition policies require management to make an estimate of the cost
to complete for long-term contracts. Management estimates outturn costs on a contract-by-contract basis and estimates are carried out by
suitably qualified and experienced personnel. Estimates of cost to complete include assessment of contract contingencies arising out of
technical, commercial, operational and other risks. The assessments of all significant contract outturns are subject to review and challenge,
and judgements and estimates are reviewed regularly throughout the contract life based on latest available information with adjustments
made where necessary. As contracts near completion, often less judgement is required to determine the expected outturn. The most
significant estimate of contract outturn relates to the Type 31 programme as outlined below.
\u2022
Variable consideration \u2013 the Group\u2019s contracts are often subject to variable consideration including performance-based penalties and
incentives, gain/pain share arrangements and other items. Variable consideration is added to the transaction price only to the extent that
it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the underlying
uncertainty is resolved.
\u2022
Inflation \u2013 The level to which the Group\u2019s revenue and cost for each contract will be impacted by inflation is a key accounting estimate,
as this could cause the revenue and cost of contract delivery to be greater than was expected at the time of contracting. The Group\u2019s
contracts are exposed to inflation due to rising employment costs, as well as increased costs of raw materials. The Group endeavours to
include cost recovery mechanisms or index-linked pricing within its contracts with customers in order to mitigate any inflation risk arising
from increasing employment and raw material costs.
The above assumptions all impact upon each individual contract to varying extents depending on the risk profile of the contract and the individual
contract terms and conditions. As such sensitivities to these assumptions are not provided as to do so is not considered practicable.
Type 31 contract estimates
The contract to produce 5 Type 31 frigates was won under competitive tender in 2019, based on Babcock\u2019s Arrowhead 140 design.
The contract is important in providing access to an expected pipeline of Type 31 work and developing our Arrowhead 140 design for
opportunities overseas. Although the contract contained certain escalation clauses, it provided limited protection from the macroeconomic
changes of recent years relating to Brexit, Covid, raw material prices and UK labour shortages, which have significantly increased our costs.
This has resulted in the contract being loss-making, together with increases in estimated costs due to the maturing of the design and the
forecast cost of labour.
As we finish structural completion of ship one, the bulk of the remaining work now relates to outfitting and commissioning. During the
outfitting stage we have experienced higher than expected levels of rework as a result of changes to the design and the long-term impacts of
out-of-sequence build activity earlier in the programme. Whilst the number of such rework events is not entirely unexpected, the work is
being performed in the later stages of completion and therefore is more complex and more costly. The ability to increase levels of
programme productivity through full enablement of production tasks has also been impacted. As the build of ship two is close behind ship
one, there is also some cross over in the design-related work necessary to this ship. With ships three and four still in the early construction
stages, the extent of impact on these and future vessels is comparatively reduced.
As a consequence, we have performed an engineering maturity review, and we have updated our financial estimates to complete the
programme. These re-estimates not only cover the production costs of material and personnel, but also an increased programme
risk contingency.
This is reflected in a charge on the contract at the year-end of \u00a3140.0 million for the revised costs to complete delivery of the Type 31 design
and build contract which is fully recognised in FY26, but the cash costs of which will be incurred over the remainder of the programme.
Within the \u00a3140.0 million charge, \u00a395.5 million is recognised as a revenue reversal in FY26 (with a corresponding increase in contract
liabilities) and the balance increases the contract loss provision.
The estimation process has been extensive given the new information available. The key steps are set out below but this year has involved
further and deeper analysis of operational data, the results of pilot schemes, input from external experts and the customer, consideration of
alternative assumptions and retrospective review of previous assumptions. Multiple review processes were held between Programme,
Sector and Group management, culminating in dedicated reviews with the Audit Committee which focused on the key assumptions around
productivity, rework, labour costs, schedule and risk. These reviews involved direct challenge of key representatives from the contract
team, assessment of the process followed and independent scrutiny of the available evidence for key assumptions.
Following the estimation process we have reassessed and updated the disclosure of major sources of estimation uncertainty set out below.
Determining the contract outturn, and therefore revenue and onerous contract provision recognised, requires assumptions and complex
judgements to be made about the future performance of the contract. The level of uncertainty in the estimates made in assessing the outturn
is linked to the complexity of the underlying contract.
The estimates made in assessing the outturn are set out below, along with the related estimation methods and data sources.
a) The number of production hours \u2013 which requires estimation of a standard level of hours for manufacturing, structural and outfitting activities,
determined with reference to previous experience of comparable programmes and industry data where available. The estimation of the time
taken to improve to this standard level is also relevant, based on a detailed operational improvement programme and evidence from pilot
work. The volume of activities is based on a detailed assessment of the Bill of Materials, supported by dedicated engineering software
b) The ability to improve operational performance through quality and engineering improvements over the five ships \u2013 which requires
actions to reduce re-work, particularly arising from engineering change
c) The cost of labour \u2013 which is dependent on our ability to recruit, the mix of the workforce between permanent and contingent workers
from the UK and overseas and the utilisation of semi-skilled and apprentice workers. A detailed resourcing plan is used to support
this estimate
d) The cost of bought-in parts and services through suppliers and sub-contractors \u2013 which includes the outcome of remaining
procurement activity, the finalisation of areas of unagreed pricing and the agreement of discounts and incentive arrangements
e) The number of hours required by support functions \u2013 primarily in engineering which requires effective management of production
support and change requests. A detailed engineering maturity review has been performed to support this estimate
f) The determination of non-incremental costs - which relate directly to fulfilling the contract and are therefore partially allocated to the
contract to determine the loss provision, including facility and overhead costs
g) The impact of inflation - on the contract price and costs to fulfil the contract, particularly in relation to labour which may be impacted by
changes in the local, UK and overseas labour markets, competitor activity and government policy
h) The achievement of the build schedule to completion and final acceptance \u2013 including the satisfaction of all contractual performance
criteria. The schedule analysis is based on detailed modelling and the performance of multiple scenario analysis
The cost estimation process has involved a number of key elements:
\u2022
Regular governance at the Group level to monitor progress and enable support as required
\u2022
Bottom-up costing at the activity level performed by individual business areas
\u2022
Reassessment of risk based on the updated cost estimates, considering ranges of outcomes and probabilities
\u2022
Input from functional specialists from across the Group
\u2022
Development of financial models based on cost drivers, using actual data and other evidence to inform the forecast outturn
\u2022
Detailed documentation of estimates made, including process followed, sources of evidence and basis for conclusions
\u2022
Review and challenge at the Programme, Sector and Group levels, culminating in dedicated reviews with the Audit Committee
The range of possible future outcomes in respect of assumptions made to determine the contract outturn could result in a material increase
or decrease in revenue and the value of the onerous contract provision, and hence on the Group\u2019s profitability, in the next financial year.
The estimates described above are by their nature inter-related for this programme and are unlikely to change with everything else constant.
However, for illustrative purposes, we have provided sensitivities to certain isolated changes in key estimates on the basis that all other
factors remain constant:
\u2022
Production hours \u2013 which are impacted by production norms, rate of improvement and quality/engineering improvements (see a) and b)
above). A 10% increase/decrease in production hours would increase/decrease the loss by \u00a329 million
\u2022
Labour rate \u2013 which is impacted by our ability to recruit permanent staff, the mix of the workforce, ancillary costs and inflation (see c) and
g) above). A 10% increase/decrease in the average labour rate would increase/decrease the loss by \u00a334 million
\u2022
Schedule \u2013 which is impacted by various factors above. A 6-month delay beyond the current planning assumption would increase the loss
by \u00a315 million
Overall, with c.\u00a30.7 billion of estimated costs to go over the life of the contract, if actual costs were to differ from those assumed by 10%,
the potential impact on the contract outturn could be c.\u00a370 million. Any increase in loss would cause a commensurate deterioration in the
balance sheet through a combination of an increase to the onerous loss provision (note 20), reductions in contract assets (note 16) or
increases in contract liabilities (note 18).
To mitigate this, comparisons of actual contract performance and previous forecasts used to assess the contract outturn are performed
regularly, with consideration given to whether any revisions to assumptions are required. The uncertainty over the contract outturn will
reduce in the next financial year but there will be substantial activity and risk over the remaining years. In a major ship build programme of
this nature, it is inherently possible that there may be changes in circumstances which cannot reasonably be foreseen at the present time.
(ii) Defined benefit pension schemes obligations
The Group\u2019s defined benefit pension schemes are assessed annually in accordance with IAS 19 and the valuation of the defined benefit
pension obligations is sensitive to the inflation, discount rate, actuarial and life expectancy assumptions used. There is a range of possible
values for the assumptions and small changes to the assumptions may have a significant impact on the valuation of the defined benefit
pension obligations. In addition to the inflation, discount rate and life expectancy estimates, management is required to make an accounting
judgement relating to the expected availability of future accounting surpluses under IFRIC 14. Further information on the key assumptions,
sensitivities and judgements is included in note 25.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-482": { "value": "
(c) Other estimates which are not key sources of estimation uncertainty
(i) The carrying value of goodwill
Goodwill is tested annually for impairment, in accordance with IAS 36, Impairment of Assets (\u2018IAS 36\u2019). The impairment assessment is based
on assumptions in relation to future cash flows expected to be generated by the groups of cash generating units to which goodwill is
allocated, together with appropriate discounting of the cash flows.
In both the current and prior years, we have not identified a key source of estimation uncertainty in respect of goodwill. The headroom across
all identified groups of CGUs against which goodwill is allocated and monitored is such that, under all modelled sensitivities, no reasonably
possible changes in assumptions could result in the complete elimination of the headroom. The key assumptions in estimating the carrying
value of goodwill are discount rate, long-term growth rate and growth rate in the short-term cash flows.
Inflation rates are incorporated into the impairment assessment through their inclusion within the growth rates in cash inflows and outflows
and through the methodology by which discount rates are determined. Were inflation to impact upon all cash flows equally, an impairment
assessment should be neutral to the impact of inflation. The Group has a number of protections and exposures to the impact of inflation across
its portfolio of revenue arrangements and supply chain agreements resulting in an indirect impact of inflation on the impairment outturn.
Further information on key assumptions and sensitivity analyses are included in note 10.
(ii) Impact of climate change
In preparing the Group financial statements, consideration has been given to the potential impact of climate change. Climate-related matters
create a number of risks and opportunities for the Group. Climate-related matters are not considered to have a material impact on the Group\u2019s
critical accounting judgements or key sources of estimation uncertainty.
Climate-related matters primarily impact the Group through their potential impact on the Group\u2019s budgets and forecasts. Budgets and
forecasts affect the current year financial statements through their impact on the following areas:
\u2022
Going concern and viability of the Group;
\u2022
Cash flow forecasts used in impairment assessments of including goodwill, intangible assets and property, plant & equipment;
\u2022
Cash flow forecasts used in the Impairment assessments of financial assets; and
\u2022
The assessed useful economic lives of the Group\u2019s non-current assets
Revised budgets and forecasts, incorporating an estimated financial impact on the climate-related risks and opportunities have been
modelled to understand the possible financial impact and the resilience to these sensitivities is the basis for why climate-related matters
have been concluded to not have a material impact on the critical accounting judgements or key sources of estimation uncertainty. Whilst
there is currently no significant short- to medium-term impact expected from climate change, the Group is aware of the ever-changing risks
attached to climate change and will regularly assess these risks against judgements and estimates made in preparing the Group consolidated
financial statements.
", "dimensions": { "concept": "babcockinternational:DisclosureOfOtherEstimatesWhichAreNotKeySourcesOfEstimationUncertainty", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-483": { "value": "(a) Transactions with non-controlling interest The Group\u2019s policy is to treat transactions with non-controlling interest as transactions with owners of the Company. These are therefore reflected as movements in reserves. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-484": { "value": "(b) Foreign currencies (i) Functional and presentation currency Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Sterling, which is the Company\u2019s functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency of subsidiaries of the Group using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the year-end exchange rates. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at exchange rates ruling at the reporting date of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Exchange differences arising from the translation of the statement of financial positions and income statements of foreign operations into Sterling are recognised as a separate component of equity on consolidation. Results of foreign operations are translated using the average exchange rate for the month of the applicable results, the net assets translated at year-end exchange rates and equity held at historic exchange rates. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at period-end exchange rates. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-518": { "value": "(i) Functional and presentation currency Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Sterling, which is the Company\u2019s functional and presentation currency. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-485": { "value": "(c) Government grants and contributions In the course of our business we receive certain grants or contributions from governments. These are deducted from the related expenses in the income statement. These amounts total \u00a356.0 million (FY25: \u00a348.3 million). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-486": { "value": "
2. Adjustments between statutory and underlying information
Definition of underlying measures and specific adjusting items
The Group provides alternative performance measures, including underlying operating profit, underlying earnings per share and net debt
(Note 26), to enable users to have a more consistent view of the performance and earnings trends of the Group. These measures are
considered to provide a consistent measure of business performance from year to year. They are used by management to assess operating
performance and as a basis for forecasting and decision-making, as well as the planning and allocation of capital resources. They are also
understood to be used by investors in analysing business performance.
Other alternative performance measures are presented in the Financial Review on pages 32 to 51 where reconciliations to statutory
information are also provided.
The Group\u2019s alternative performance measures are not defined by IFRS and are therefore considered to be non-GAAP measures. The measures
may not be comparable to similar measures used by other companies and they are not intended to be a substitute for, or superior to, measures
defined under IFRS. The Group\u2019s alternative performance measures are consistent with the year ended 31 March 2025.
Underlying operating profit
In any given year the statutory measure of operating profit includes a number of items which the Group considers to either be one-off in
nature or otherwise not reflective of underlying performance. Underlying operating profit therefore adjusts statutory operating profit to
provide readers with a measure of business performance which the Group considers more consistently analyses the underlying performance
of the Group by removing these one-off and other items not reflective of underlying performance that otherwise add volatility to performance.
Underlying operating profit eliminates potential differences in performance caused by purchase price allocations on business combinations in
prior periods (amortisation of acquired intangibles), business acquisition, merger and divestment related items, large, infrequent restructuring
programmes and fair value movements on derivatives. Transactions such as these may happen regularly and could significantly impact the
statutory result in any given year. Adjustments to underlying operating profit may include both income and expenditure items.
Specific adjusting items include:
\u2022
Amortisation of acquired intangibles;
\u2022
Business acquisition, merger and divestment related items (being amounts related to corporate transactions and gains or losses on
disposal of assets or businesses);
\u2022
Gains, losses and costs directly arising from the Group\u2019s withdrawal from a specific market or geography, including closure costs,
severance costs, the disposal of assets and termination of leases;
\u2022
The costs of large restructuring programmes that significantly exceed the minor restructuring which occurs in most years as part of normal
operations. Restructuring costs incurred as a result of normal operations are included in operating costs and are not excluded from
underlying operating profit;
\u2022
Profit or loss from amendment, curtailment, settlement or equalisation of Group pension schemes;
\u2022
Fair value gain/(loss) on forward rate contracts that are open during the period; and
\u2022
Exceptional items that are significant, non-recurring and outside of the normal operating practice. These items are described as
exceptional in order to appropriately represent the Group\u2019s underlying business performance. No exceptional items have been identified in
the current or comparative period.
Underlying earnings per share
Basic underlying earnings per share are calculated by dividing the underlying profit after tax attributable to ordinary shareholders by the
weighted average number of ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust as
treasury shares. Diluted underlying earnings per share is calculated by dividing the underlying profit after tax attributable to ordinary
shareholders by the weighted average number of ordinary shares in issue less the weighted average number of shares held by the Employee
Share Trust, plus the number of ordinary shares which are considered potentially dilutive ordinary shares in respect of share incentive
schemes, should the vesting conditions have been met as at the year end. Details of share incentive schemes are provided in note 23 and
note 24.
Income statement including underlying results
The below table, disclosed as supplementary information, reconciles the non-GAAP measure of underlying operating profit to statutory profit.
Year ended 31 March 2026
Year ended 31 March 2025
Specific
Specific
adjusting adjusting
Underlying items Statutory Underlying items Statutory
Note \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Revenue
3
5,177.7
\u2013
5,177.7
4,831.3
\u2013
4,831.3
Operating profit
3,4
293.3
11.8
305.1
362.9
1.0
363.9
Operating margin %
5.7%
\u2013
5.9%
7.5%
\u2013
7.5%
Results from joint ventures and associates
14
7.4
\u2013
7.4
8.4
(11.1)
(2.7)
Net finance costs
5
(33.5)
4.7
(28.8)
(31.9)
(0.2)
(32.1)
Profit/(loss) before tax
267.2
16.5
283.7
339.4
(10.3)
329.1
Income tax (expense)/benefit
7
(69.2)
(3.8)
(73.0)
(84.1)
3.9
(80.2)
Profit/(loss) after tax for the year
198.0
12.7
210.7
255.3
(6.4)
248.9
Earnings per share including underlying measures
Year ended 31 March 2026
Year ended 31 March 2025
Specific
Specific
adjusting adjusting
Underlying items Statutory Underlying items Statutory
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Profit/(loss) after tax for the year
198.0
12.7
210.7
255.3
(6.4)
248.9
Amount attributable to owners of the parent
198.5
12.7
211.2
253.5
(6.4)
247.1
Amount attributable to non-controlling interests
(0.5)
\u2013
(0.5)
1.8
\u2013
1.8
Weighted average number of shares (m)
501.3
501.3
503.6
503.6
Effect of dilutive securities (m)
9.8
9.8
10.8
10.8
Diluted weighted average number of shares (m)
511.1
511.1
514.4
514.4
Basic EPS (note 9)
39.6p
42.1p
50.3p
49.1p
Diluted EPS (note 9)
38.8p
41.3p
49.3p
48.0p
Details of specific adjusting items
The impact of specific adjusting items is set out below:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Amortisation of acquired intangibles
(10.0)
(8.2)
Business acquisition, merger and divestment related items
10.2
1.5
Profit or loss from amendment, curtailment, settlement or equalisation of Group pension schemes
(note 25)
\u2013
1.2
Fair value movement on derivatives and related items
11.6
6.5
Adjusting items impacting operating profit
11.8
1.0
Non
-recurring amounts in results from joint ventures and associates
\u2013
(11.1)
Fair value movement on derivatives and related items
4.7
(0.2)
Adjusting items impacting profit before tax
16.5
(10.3)
Income tax benefit
Amortisation of acquired intangibles
2.9
2.2
Business acquisition, merger and divestment related items
(2.5)
\u2013
Profit or loss from amendment, curtailment, settlement or equalisation of Group pension schemes
(note 25)
\u2013
(0.3)
Fair value movement on derivatives and related items
(4.2)
(1.6)
Other tax items including rate change impact
\u2013
3.6
Income tax benefit
(3.8)
3.9
Reconciliation of statutory to underlying tax rate
Year ended 31 March 2026 Year ended 31 March 2025
Specific
Specific
adjusting adjusting
Underlying items Statutory Underlying items Statutory
Note \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Profit/(loss) before tax
267.2
16.5
283.7
339.4
(10.3)
329.1
Share of
(profit)/loss from joint ventures
and associates
14
(7.4)
\u2013
(7.4)
(8.4)
11.1
2.7
Profit/(loss) before tax excluding profit from
joint ventures and associates
259.8
16.5
276.3
331.0
0.8
331.8
Income tax (expense)/benefit
(69.2)
(3.8)
(73.0)
(84.1)
3.9
(80.2)
Tax rate
26.6%
26.4%
25.4%
24.2%
Explanation of specific adjusting items
Amortisation of acquired intangibles
Underlying operating profit excludes the amortisation of acquired intangibles. This item is excluded from underlying results as it arises
as a result of purchase price allocations on business combinations and is a non-cash item which does not change each year dependent
on the performance of the business. It is therefore not considered to represent the underlying activity of the Group and is removed to aid
comparability with peers who have grown organically as opposed to through acquisition. Intangible assets arising as a result of the purchase
price allocation on business combinations include customer lists, technology-based assets, order book and trade names. Amortisation of
internally generated intangible assets is included within underlying operating profit.
Business acquisition, merger and divestment related items
Transaction related costs and gains or losses on acquisitions, mergers and divestments of businesses are excluded from underlying
operating profit as business combinations and divestments are not considered to result from underlying business performance.
The total net profit relating to business acquisition, merger and divestment related items for the year ended 31 March 2026 was \u00a310.2 million
(2025: \u00a31.5 million). The profit for the current year comprises a gain of \u00a38.1 million on loan receivable instruments created on the disposal of
the Group\u2019s Civil Training business in a prior period. These loan notes were held at fair value and an accounting gain arose on final settlement
of the outstanding balance. Further detail is given in Note 27. In addition, the Group has recorded a \u00a32.1 million gain from amounts being
settled on intercompany balances previously designated as net investments in a foreign operation under IAS 21 further to internal group
reorganisation activities.
The prior year balance comprises the disposal of the Group\u2019s interest in the NTI business in Oman. Further detail is included in note 27.
Fair value movement on derivatives and related items
These are open forward currency contracts, taken out in the ordinary course of business to manage foreign currency exposures, where
the transaction will occur in future periods. Hedge accounting under IFRS is not applied, however these do represent economic hedges.
On maturity the currency contract will be closed and recognised in full within underlying operating profit at the same time as the hedged sale
or purchase. The net result, at that time, will then more appropriately reflect the related sales price or supplier cost being hedged.
Hedge ineffectiveness on debt and debt-related derivatives that are designated in a hedge relationship are also presented as a specific
adjusting item in finance costs. This is presented as a specific adjusting item as this ineffectiveness is caused by a historic off-market
designation, the transactions are considered by the Group to represent an economic hedge.
The fair value movement on lease-related derivatives and foreign exchange movements on lease liabilities are also presented as a specific
adjusting item in finance costs, as hedge accounting under IFRS is also not applied to these transactions but are also considered by the
Group to represent an economic hedge.
Tax
Specific adjusting items in respect of tax are \u00a3nil. In the year ended 31 March 2025 the Group recorded a credit of \u00a33.6 million arising from
the impact of the increase in the rate of corporation tax. The rate change impact arose from adjustments to the Group\u2019s UK tax position for
years ended before 1 April 2023.
Results from joint ventures and associates
In the prior year it was noted that our Ascent flight training joint venture, as part of FRS102 aligning with IFRS on revenue recognition, had
recorded a one-off reduction in its overall measure of contract completion under IFRS 15. This reduction in share of profits from JVs was
reported as a Specific Adjusting Item as it is met our criteria for an exceptional item, being significant, non-recurring and outside of the
normal operating practice. No one-off items in respect of results from joint ventures and associates have been noted in the current year.
", "dimensions": { "concept": "babcockinternational:DisclosureOfAdjustmentsBetweenStatutoryAndUnderlyingInformation", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-544": { "value": "3. Segmental information and revenue recognition Revenue recognition Revenue recognised represents income derived from contracts with customers for the provision of goods and services in the ordinary course of the Group\u2019s activities. The Group recognises revenue in line with IFRS 15, Revenue from Contracts with Customers. IFRS 15 requires the identification of performance obligations in contracts, determination of contract price, allocation of the contract price to the performance obligations and recognition of revenue as performance obligations are satisfied. (i) Performance obligations Contracts are assessed to identify each promise to transfer either a distinct good or service or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Goods and services are distinct if the customer can benefit from them either on their own or together with other resources readily available to the customer and they are separately identifiable in the contract. In assessing whether the performance obligations are separately identifiable, the services are reviewed to determine the extent to which the goods or services within a contract are interrelated and whether they modify other goods or services within a contract. The Group also considers whether the goods and/or services are integrated and represent a combined output for which the customer has contracted. The integrated output nature of many of the services provided by the Group results in some contracts only having one performance obligation. (ii) Determination of contract price The contract price represents the amount of consideration which the Group expects to be entitled to in exchange for delivering the promised goods or services to the customer. Contracts can include both fixed and variable consideration. Inclusion of variable consideration in the contract price requires the exercise of judgement in relation to the amount to be received through unpriced contract variations and claims (see section (v) below for further details) and variable elements of existing contracts, such as performance-based penalties and incentives, and gain/pain share arrangements where cost under/over spends are shared with the customer. Given the long-term nature of the Group\u2019s contracts with customers, a number of arrangements include clauses to allow for inflation within the transaction price. Such inflation clauses are treated as variable consideration. Elements of variable consideration are estimated at contract inception and at the end of each reporting period. Any required adjustment is made against the contract price in the period in which the adjustment occurs. Variable consideration is estimated using either the expected value or the most likely amount and is added to the transaction price only to the extent that it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the underlying uncertainty is resolved. This judgement is made by suitably qualified and experienced personnel based on the contract terms, status of negotiations with customers and historical experience with customers and with similar contracts. As part of this judgement, variable consideration may be constrained until the uncertainty is resolved. In the case of unpriced variations these will be constrained to the extent that such variable consideration is not considered highly probable. Variable consideration may be included in the total transaction price or, in certain circumstances, may be allocated to a specific time period. Where variable consideration is allocated to a specific time period this will typically be in relation to performance related deductions. (iii) Allocation of contract price to performance obligations Given the bespoke nature of many of the goods and services the Group provides, standalone selling prices are generally not observable and, in these circumstances, the Group allocates the contract price to performance obligations based on cost plus margin. This amount would be the standalone selling price of each performance obligation if contracted with a customer separately. (iv) Revenue and profit recognition Performance obligations are satisfied, and revenue recognised, as control of goods and services is transferred to the customer. Control can be transferred at a point in time or over time and the Group determines, for each performance obligation, whether it is satisfied over time or at a point in time. Revenue recognised over time Performance obligations are satisfied over time if any of the following criteria are satisfied: \u2022 the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs; or \u2022 the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for work done; or \u2022 the Group\u2019s performance creates or enhances an asset controlled by the customer. Typical performance obligations in the Group\u2019s contracts that are recognised over time include the delivery of services (such as maintenance, engineering and training), as the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs the services. Revenue from the design, manufacture and enhancement of bespoke assets is also recognised over time, as the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date, being recovery of costs incurred in satisfying the performance obligation plus a reasonable profit margin. Where the Group satisfies performance obligations over time, the Group primarily uses an input method to measure satisfaction of each performance obligation based on costs incurred compared to total estimated contract costs. For the majority of the Group\u2019s contracts, this is deemed to be the most appropriate method to measure Babcock\u2019s effort in satisfying the applicable performance obligations. Costs are included in the measurement of progress towards satisfying the performance obligation to the extent that there is a direct relationship between the input and satisfaction of the performance obligation. For contracts where costs incurred is not deemed to be the most appropriate measure, the Group uses time elapsed to measure satisfaction of the performance obligation. Under most of the Group\u2019s contracts, the customer pays in accordance with a pre-arranged payment schedule or once milestones have been met. If the amount of revenue recognised (as measured by the methods described above) exceeds the amount of cash received from the customer then the difference will be held on the statement of financial position. This will typically be comprised of a mixture of contract assets and trade receivables. If the amount of cash collected together with amounts due under the contract but uncollected exceeds the amount of revenue recognised then the difference is also held on the statement of financial position as a contract liability. See note 16 and note 18 for further details on how contract assets and liabilities are recognised. Revenue recognised at a point in time If control of the goods or services is not transferred to the customer over time, then revenue is recognised at the point in time that control is transferred to the customer. Point in time recognition mainly applies to sale of goods. Control typically transfers to the customer when the customer has legal title to the goods and this is usually coincident with delivery of the goods to the customer and right to receive payment by the Group. These revenues are delivered predominantly by the Aviation and Land sectors and include sales of equipment to commercial customers and procurement of consumables on behalf of the Ministry of Defence (MOD). Sale of goods at a point in time represents approximately 6% of Group revenues (2025: 7%). Assessment of contract profitability Profit is recognised to the extent that the final outcome on contracts can be reliably assessed. Contract outturn assessments are carried out on a contract-by-contract basis, including consideration of technical and other risks, by suitably qualified and experienced personnel and the assessments of all significant contracts are subject to review and challenge. Estimating contract revenues can involve judgements around whether the Group will meet performance targets and/or earn incentives, as well as consideration as to whether it is necessary to constrain variable revenues to meet the highly probable not to significantly reverse test set out in paragraph 56 of IFRS 15. When considering variations, claims and contingencies, the Group analyses various factors including the contractual terms, status of negotiations with the customer and historical experience with that customer and with similar contracts. Estimates of costs include assessment of contract contingencies arising out of technical, commercial, operational and other risks. The assessments of all significant contract outturns are subject to review and challenge and estimation uncertainty is resolved on a contract-by-contract basis as contracts near the end of the project lifecycle. If a contract is deemed to be loss making the present obligation is recognised and measured as provision. Further detail is included in the Provisions accounting policy. (v) Contract modifications Claims and variations The Group\u2019s contracts are often amended for changes in the customers\u2019 requirements. Contract modifications can relate to changes in both contract scope and price arising in the ordinary course of delivering contracts, which are referred to as contract variations. Such variations may arise as a result of customer requests or instructions or from requests from the Group in response to matters arising during the delivery of contracts. For example, some contracts include the requirement to conduct surveys and to report on or to recommend additional work as required. Some contracts may require the Group to proceed with variations and to agree pricing subsequently. See further detail on accounting for contract modifications below. Contract modifications can also refer to changes in price only, with no change in scope, where there is a difference of view or dispute in relation to interpretation of contracts. These contract claims and variations are considered to be modifications as referred to in paragraph 18 of IFRS 15. Accounting for contract modifications The Group accounts for contract modifications in one of three ways, based on the facts and circumstances of the contract modification: 1. Prospectively, as an additional, separate contract; 2. Prospectively, as a termination of the existing contract and creation of a new contract; or 3. As part of the original contract using a cumulative catch-up. The Group recognises contract variations, which impact both scope and price, when they are approved in accordance with IFRS 15. The Group\u2019s preferred approach is to approve contract modifications by formal contract amendment. However, the approval of contract modifications may be required to be carried out at pace and other mechanisms, informed by established customer relationships and local working arrangements, can be used to achieve approval of contract modifications. In approving contract modifications in these circumstances, the Group considers the scope of the contract modification in the context of the contract scope and contract terms. Contract variations where the formal contract amendment has not been received but which are, in management\u2019s judgement, approved are accounted for as a contract modification in accordance with IFRS 15 paragraph 18. Revenue from these contract variations is treated as variable consideration and subject to constraint as outlined in section (ii) above, until the pricing is agreed. Contract claims are also considered to be contract modifications in accordance with IFRS 15, and revenue is subject to constraint as outlined in section (ii). Claims and variations which are not deemed to be contract modifications Claims can also be raised by Babcock against third-party sub-contractors or suppliers to the Group. As these do not relate to contracts with customers, but rather relate to contracts with suppliers, they are not accounted for under IFRS 15. The Group\u2019s accounting policy is to account for such claims in accordance with the contingent asset guidance per IAS 37. Income in relation to these claims will only be recognised once it is virtually certain. The Group has four operating and reportable segments, determined by reference to the goods and services they provide and the markets they serve. Marine \u2013 design, build and through-life support of naval ships, submarine and equipment through-life support, design and manufacture of weapons handling and launch systems for ships and submarines and design, build and support of secure military communications systems in the UK and internationally. Nuclear \u2013 through-life support of submarines and complex engineering services in support of major decommissioning programmes and projects, training and operation support, new build programme management and design and installation in the UK. Land \u2013 large-scale critical vehicle fleet management, equipment support and training for military and civil customers. Aviation \u2013 critical engineering services to defence and civil customers worldwide, including pilot training, equipment support, airbase management and operation of aviation fleets delivering emergency services. The executive members of the Board, the chief operating decision maker as defined by IFRS 8, monitor the results of these operating and reportable segments and makes decisions about the allocation of resources. The accounting policies of the reportable segments are the same as the group\u2019s accounting policies described in Note 1. The table below presents the underlying results for each reportable segment in accordance with the definition of underlying operating profit, as set out in note 2, and reconciles the underlying operating profit to the statutory profit before tax.
Marine
Nuclear
Land
Aviation
Unallocated
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Revenue
1,591.5
2,070.4
1,084.4
431.4
\u2013
5,177.7
Underlying operating profit/(loss)
(29.8)
197.1
95.3
30.7
\u2013
293.3
Specific Adjusting Items (note 2)
Amortisation of acquired intangibles
(7.8)
\u2013
\u2013
(2.2)
\u2013
(10.0)
Business acquisition, merger and divestment related items
\u2013
\u2013
8.1
2.1
\u2013
10.2
Fair value gain on forward rate contracts to be settled in
future periods
9.2
\u2013
\u2013
2.4
\u2013
11.6
Operating profit
(28.4)
197.1
103.4
33.0
\u2013
305.1
Results from joint ventures and associates
1.3
(0.3)
\u2013
6.4
\u2013
7.4
IFRIC 12 investment income
\u2013
\u2013
0.3
\u2013
\u2013
0.3
Other net finance costs*
\u2013
\u2013
\u2013
\u2013
(29.1)
(29.1)
Profit/(loss) before tax
(27.1)
196.8
103.7
39.4
(29.1)
283.7
Marine
Nuclear
Land
Aviation
Unallocated
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
\u00a3m
*
Revenue
1,576.4
1,816.0
1,116.6
322.3
\u2013
4,831.3
Underlying operating profit
96.5
160.3
86.2
19.9
\u2013
362.9
Specific Adjusting Items (note 2)
Amortisation of acquired intangibles
(5.5)
\u2013
\u2013
(2.7)
\u2013
(8.2)
Business acquisition, merger and divestment related items
1.5
\u2013
\u2013
\u2013
\u2013
1.5
Fair value gain/(loss) on forward rate contracts to be settled in
future periods
6.8
\u2013
\u2013
(0.3)
\u2013
6.5
Profit or loss from amendment, curtailment, settlement or
equalisation of Group pension schemes
\u2013
1.1
0.1
\u2013
\u2013
1.2
Operating profit
99.3
161.4
86.3
16.9
\u2013
363.9
Results from joint ventures and associates
(0.5)
0.3
\u2013
(2.5)
\u2013
(2.7)
IFRIC 12 investment income
\u2013
\u2013
0.4
\u2013
\u2013
0.4
Other net finance costs*
\u2013
\u2013
\u2013
\u2013
(32.5)
(32.5)
Profit/(loss) before tax
98.8
161.7
86.7
14.4
(32.5)
329.1
* Other net finance costs are not allocated to a specific sector. Revenues of \u00a33.0 billion (2025: \u00a33.0 billion) are derived from a single external customer. These revenues are attributable across all reportable segments. Segment assets and liabilities The reportable segment assets and liabilities at 31 March 2026 and 31 March 2025 and capital expenditure and lease principal payments for the years then ended are as follows:
Assets
Liabilities
Capital expenditure
Lease payments
2026
2025
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Marine
916.6
845.9
1,066.5
901.8
34.4
18.9
4.1
4.4
Nuclear
761.0
761.9
378.9
378.3
54.8
69.8
4.1
5.7
Land
663.4
665.9
387.7
424.5
3.5
6.1
6.6
10.3
Aviation
521.1
453.5
366.6
313.0
58.2
25.3
18.8
17.9
Unallocated*
1,068.0
963.0
1,101.1
1,050.8
9.4
8.2
10.9
7.1
Group total
3,930.1
3,690.2
3,300.8
3,068.4
160.3
128.3
44.5
45.4
* All assets and liabilities are allocated to their appropriate reportable segments except for cash, cash equivalents, borrowings, income and deferred tax balances and retirement benefit surpluses which are included in the unallocated segment. Capital expenditure represents additions to property, plant and equipment and intangible assets. Proceeds from the sale of assets totalling \u00a353.1 million (2025: \u00a36.1 million) are not included above, and are predominantly in the Aviation sector (2025: Land sector). See note 18 relating to the treatment of amounts payable in respect of capital expenditure. The segmental analysis of joint ventures and associates is detailed in note 14. Segmental depreciation and amortisation The segmental depreciation on property, plant and equipment, right of use assets and amortisation of intangible assets for the years ended 31 March 2026 and 31 March 2025 is as follows:
Depreciation of property,
Depreciation of
Amortisation of
plant and equipment right of use assets intangible assets
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Marine
12.7
12.1
3.8
3.1
10.5
8.7
Nuclear
32.8
28.1
5.1
6.2
8.4
3.5
Land
3.4
4.4
6.1
7.3
0.5
0.6
Aviation
9.4
7.2
21.5
11.3
2.3
2.8
Unallocated
7.7
7.2
9.7
3.3
6.0
11.9
Group total
66.0
59.0
46.2
31.2
27.7
27.5
Segmental asset impairments The segmental impairment on property, plant and equipment, right of use assets and intangible assets for the years ended 31 March 2026 and 31 March 2025 is as follows:
Impairment of property,
Impairment of
Impairment of
plant and equipment right of use assets intangible assets
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Marine
0.1
\u2013
\u2013
\u2013
\u2013
\u2013
Nuclear
\u2013
\u2013
0.1
\u2013
\u2013
\u2013
Land
\u2013
\u2013
1.4
0.1
\u2013
\u2013
Aviation
(1.9)
\u2013
\u2013
\u2013
\u2013
\u2013
Unallocated
3.3
\u2013
2.7
1.7
\u2013
\u2013
Group total
1.5
\u2013
4.2
1.8
\u2013
\u2013
Geographic analysis of non-current assets The geographic analysis for non-current assets by location of those assets for the years ended 31 March 2026 and 31 March 2025 is as follows:
2026
2025
\u00a3m \u00a3m
United Kingdom
1,493.0
1,473.3
Rest of Europe
66.4
64.9
Africa
28.5
26.0
North America
78.9
58.3
Australasia
162.5
154.3
Rest of World
2.4
0.9
Non-current segment assets
1,831.7
1,777.7
Retirement benefits
77.3
98.8
Lease receivables
31.4
26.2
Derivatives
9.9
5.1
Deferred tax asset
96.2
102.8
Total non-current assets
2,046.5
2,010.6
Geographic analysis of revenue The geographic analysis of revenue by origin of customer for the years ended 31 March 2026 and 31 March 2025 is as follows:
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
United Kingdom
769.3
2,068.5
622.1
185.1
3,645.0
Rest of Europe
38.8
\u2013
26.1
155.0
219.9
Africa
\u2013
\u2013
336.9
\u2013
336.9
North America
215.4
1.9
\u2013
26.8
244.1
Australasia
187.2
\u2013
99.3
64.5
351.0
Rest of World
380.8
\u2013
\u2013
\u2013
380.8
Group total
1,591.5
2,070.4
1,084.4
431.4
5,177.7
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
United Kingdom
853.3
1,815.8
628.4
150.8
3,448.3
Rest of Europe
40.6
\u2013
31.0
95.7
167.3
Africa
\u2013
\u2013
348.6
\u2013
348.6
North America
197.7
0.2
\u2013
13.0
210.9
Australasia
195.4
\u2013
108.6
62.8
366.8
Rest of World
289.4
\u2013
\u2013
\u2013
289.4
Group total
1,576.4
1,816.0
1,116.6
322.3
4,831.3
The analysis of revenue split between market sectors for the years ended 31 March 2026 and 31 March 2025 is as follows:
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Defence
1,230.4
1,784.1
571.2
236.4
3,822.1
Civil
361.1
286.3
513.2
195.0
1,355.6
Revenue
1,591.5
2,070.4
1,084.4
431.4
5,177.7
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Defence
1,296.4
1,575.0
547.3
160.8
3,579.5
Civil
280.0
241.0
569.3
161.5
1,251.8
Revenue
1,576.4
1,816.0
1,116.6
322.3
4,831.3
During the year, the Group has recognised a \u00a329.1 million reversal of revenue in respect of performance obligations satisfied or partially satisfied in previous periods (2025: an increase in revenue of \u00a345.3 million). The current year reversal is significantly impacted by the Type 31 charge as described in Note 1 to the accounts. Excluding the impact of Type 31, the Group has recognised \u00a350.1 million of revenue in respect of performance obligations satisfied or partially satisfied in previous periods, broadly in line with the amount recorded in 2025. This reflects the increase in expected outturn margin across our long-term contracts. We normally expect contract margins to increase gradually over time as risk on each contract reduces and as we meet the \u2018highly probable\u2019 test under IFRS 15 to recognise variable consideration. This therefore represents a normal part of our trading. At 31 March 2026, there is \u00a35.9 billion (2025 restated: \u00a36.8 billion) of transaction price on contracts with customers that has been allocated to unsatisfied or partially satisfied performance obligations (note this metric has been prepared for IFRS 15 disclosure purposes and therefore does not align to the Group\u2019s contract backlog). Contract backlog is based on the full contractual term of the Group\u2019s agreements whilst the IFRS 15 disclosure may be a shorter contractual period in the event that the customer has the ability to exit contracts prior to the full term for non-substantive penalty payments. Management expects that 51.2% (2025 restated: 40.4%) of the transaction price allocated to unsatisfied performance obligations as at 31 March 2026 will be recognised as revenue during the next reporting period. A further 42.6% (2025 restated: 48.8%) of the transaction price allocated to unsatisfied performance obligations is expected to be recognised as revenue in years two to five after 31 March 2026. Comparatives were restated following identification of additional contracts for which the customer has the ability to exit prior to the full term for non-substantive penalty payments. This has a resulting impact on the disclosed percentages.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-487": { "value": "3. Segmental information and revenue recognition Revenue recognition Revenue recognised represents income derived from contracts with customers for the provision of goods and services in the ordinary course of the Group\u2019s activities. The Group recognises revenue in line with IFRS 15, Revenue from Contracts with Customers. IFRS 15 requires the identification of performance obligations in contracts, determination of contract price, allocation of the contract price to the performance obligations and recognition of revenue as performance obligations are satisfied. (i) Performance obligations Contracts are assessed to identify each promise to transfer either a distinct good or service or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Goods and services are distinct if the customer can benefit from them either on their own or together with other resources readily available to the customer and they are separately identifiable in the contract. In assessing whether the performance obligations are separately identifiable, the services are reviewed to determine the extent to which the goods or services within a contract are interrelated and whether they modify other goods or services within a contract. The Group also considers whether the goods and/or services are integrated and represent a combined output for which the customer has contracted. The integrated output nature of many of the services provided by the Group results in some contracts only having one performance obligation. (ii) Determination of contract price The contract price represents the amount of consideration which the Group expects to be entitled to in exchange for delivering the promised goods or services to the customer. Contracts can include both fixed and variable consideration. Inclusion of variable consideration in the contract price requires the exercise of judgement in relation to the amount to be received through unpriced contract variations and claims (see section (v) below for further details) and variable elements of existing contracts, such as performance-based penalties and incentives, and gain/pain share arrangements where cost under/over spends are shared with the customer. Given the long-term nature of the Group\u2019s contracts with customers, a number of arrangements include clauses to allow for inflation within the transaction price. Such inflation clauses are treated as variable consideration. Elements of variable consideration are estimated at contract inception and at the end of each reporting period. Any required adjustment is made against the contract price in the period in which the adjustment occurs. Variable consideration is estimated using either the expected value or the most likely amount and is added to the transaction price only to the extent that it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the underlying uncertainty is resolved. This judgement is made by suitably qualified and experienced personnel based on the contract terms, status of negotiations with customers and historical experience with customers and with similar contracts. As part of this judgement, variable consideration may be constrained until the uncertainty is resolved. In the case of unpriced variations these will be constrained to the extent that such variable consideration is not considered highly probable. Variable consideration may be included in the total transaction price or, in certain circumstances, may be allocated to a specific time period. Where variable consideration is allocated to a specific time period this will typically be in relation to performance related deductions. (iii) Allocation of contract price to performance obligations Given the bespoke nature of many of the goods and services the Group provides, standalone selling prices are generally not observable and, in these circumstances, the Group allocates the contract price to performance obligations based on cost plus margin. This amount would be the standalone selling price of each performance obligation if contracted with a customer separately. (iv) Revenue and profit recognition Performance obligations are satisfied, and revenue recognised, as control of goods and services is transferred to the customer. Control can be transferred at a point in time or over time and the Group determines, for each performance obligation, whether it is satisfied over time or at a point in time. Revenue recognised over time Performance obligations are satisfied over time if any of the following criteria are satisfied: \u2022 the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs; or \u2022 the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for work done; or \u2022 the Group\u2019s performance creates or enhances an asset controlled by the customer. Typical performance obligations in the Group\u2019s contracts that are recognised over time include the delivery of services (such as maintenance, engineering and training), as the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs the services. Revenue from the design, manufacture and enhancement of bespoke assets is also recognised over time, as the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date, being recovery of costs incurred in satisfying the performance obligation plus a reasonable profit margin. Where the Group satisfies performance obligations over time, the Group primarily uses an input method to measure satisfaction of each performance obligation based on costs incurred compared to total estimated contract costs. For the majority of the Group\u2019s contracts, this is deemed to be the most appropriate method to measure Babcock\u2019s effort in satisfying the applicable performance obligations. Costs are included in the measurement of progress towards satisfying the performance obligation to the extent that there is a direct relationship between the input and satisfaction of the performance obligation. For contracts where costs incurred is not deemed to be the most appropriate measure, the Group uses time elapsed to measure satisfaction of the performance obligation. Under most of the Group\u2019s contracts, the customer pays in accordance with a pre-arranged payment schedule or once milestones have been met. If the amount of revenue recognised (as measured by the methods described above) exceeds the amount of cash received from the customer then the difference will be held on the statement of financial position. This will typically be comprised of a mixture of contract assets and trade receivables. If the amount of cash collected together with amounts due under the contract but uncollected exceeds the amount of revenue recognised then the difference is also held on the statement of financial position as a contract liability. See note 16 and note 18 for further details on how contract assets and liabilities are recognised. Revenue recognised at a point in time If control of the goods or services is not transferred to the customer over time, then revenue is recognised at the point in time that control is transferred to the customer. Point in time recognition mainly applies to sale of goods. Control typically transfers to the customer when the customer has legal title to the goods and this is usually coincident with delivery of the goods to the customer and right to receive payment by the Group. These revenues are delivered predominantly by the Aviation and Land sectors and include sales of equipment to commercial customers and procurement of consumables on behalf of the Ministry of Defence (MOD). Sale of goods at a point in time represents approximately 6% of Group revenues (2025: 7%). Assessment of contract profitability Profit is recognised to the extent that the final outcome on contracts can be reliably assessed. Contract outturn assessments are carried out on a contract-by-contract basis, including consideration of technical and other risks, by suitably qualified and experienced personnel and the assessments of all significant contracts are subject to review and challenge. Estimating contract revenues can involve judgements around whether the Group will meet performance targets and/or earn incentives, as well as consideration as to whether it is necessary to constrain variable revenues to meet the highly probable not to significantly reverse test set out in paragraph 56 of IFRS 15. When considering variations, claims and contingencies, the Group analyses various factors including the contractual terms, status of negotiations with the customer and historical experience with that customer and with similar contracts. Estimates of costs include assessment of contract contingencies arising out of technical, commercial, operational and other risks. The assessments of all significant contract outturns are subject to review and challenge and estimation uncertainty is resolved on a contract-by-contract basis as contracts near the end of the project lifecycle. If a contract is deemed to be loss making the present obligation is recognised and measured as provision. Further detail is included in the Provisions accounting policy. (v) Contract modifications Claims and variations The Group\u2019s contracts are often amended for changes in the customers\u2019 requirements. Contract modifications can relate to changes in both contract scope and price arising in the ordinary course of delivering contracts, which are referred to as contract variations. Such variations may arise as a result of customer requests or instructions or from requests from the Group in response to matters arising during the delivery of contracts. For example, some contracts include the requirement to conduct surveys and to report on or to recommend additional work as required. Some contracts may require the Group to proceed with variations and to agree pricing subsequently. See further detail on accounting for contract modifications below. Contract modifications can also refer to changes in price only, with no change in scope, where there is a difference of view or dispute in relation to interpretation of contracts. These contract claims and variations are considered to be modifications as referred to in paragraph 18 of IFRS 15. Accounting for contract modifications The Group accounts for contract modifications in one of three ways, based on the facts and circumstances of the contract modification: 1. Prospectively, as an additional, separate contract; 2. Prospectively, as a termination of the existing contract and creation of a new contract; or 3. As part of the original contract using a cumulative catch-up. The Group recognises contract variations, which impact both scope and price, when they are approved in accordance with IFRS 15. The Group\u2019s preferred approach is to approve contract modifications by formal contract amendment. However, the approval of contract modifications may be required to be carried out at pace and other mechanisms, informed by established customer relationships and local working arrangements, can be used to achieve approval of contract modifications. In approving contract modifications in these circumstances, the Group considers the scope of the contract modification in the context of the contract scope and contract terms. Contract variations where the formal contract amendment has not been received but which are, in management\u2019s judgement, approved are accounted for as a contract modification in accordance with IFRS 15 paragraph 18. Revenue from these contract variations is treated as variable consideration and subject to constraint as outlined in section (ii) above, until the pricing is agreed. Contract claims are also considered to be contract modifications in accordance with IFRS 15, and revenue is subject to constraint as outlined in section (ii). Claims and variations which are not deemed to be contract modifications Claims can also be raised by Babcock against third-party sub-contractors or suppliers to the Group. As these do not relate to contracts with customers, but rather relate to contracts with suppliers, they are not accounted for under IFRS 15. The Group\u2019s accounting policy is to account for such claims in accordance with the contingent asset guidance per IAS 37. Income in relation to these claims will only be recognised once it is virtually certain.
The Group has four operating and reportable segments, determined by reference to the goods and services they provide and the markets
they serve.
Marine \u2013 design, build and through-life support of naval ships, submarine and equipment through-life support, design and manufacture of
weapons handling and launch systems for ships and submarines and design, build and support of secure military communications systems in
the UK and internationally.
Nuclear \u2013 through-life support of submarines and complex engineering services in support of major decommissioning programmes and
projects, training and operation support, new build programme management and design and installation in the UK.
Land \u2013 large-scale critical vehicle fleet management, equipment support and training for military and civil customers.
Aviation \u2013 critical engineering services to defence and civil customers worldwide, including pilot training, equipment support, airbase
management and operation of aviation fleets delivering emergency services.
The executive members of the Board, the chief operating decision maker as defined by IFRS 8, monitor the results of these operating and
reportable segments and makes decisions about the allocation of resources.
The accounting policies of the reportable segments are the same as the group\u2019s accounting policies described in Note 1. The table below
presents the underlying results for each reportable segment in accordance with the definition of underlying operating profit, as set out in
note 2, and reconciles the underlying operating profit to the statutory profit before tax.
Marine
Nuclear
Land
Aviation
Unallocated
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Revenue
1,591.5
2,070.4
1,084.4
431.4
\u2013
5,177.7
Underlying operating profit/(loss)
(29.8)
197.1
95.3
30.7
\u2013
293.3
Specific Adjusting Items (note 2)
Amortisation of acquired intangibles
(7.8)
\u2013
\u2013
(2.2)
\u2013
(10.0)
Business acquisition, merger and divestment related items
\u2013
\u2013
8.1
2.1
\u2013
10.2
Fair value gain on forward rate contracts to be settled in
future periods
9.2
\u2013
\u2013
2.4
\u2013
11.6
Operating profit
(28.4)
197.1
103.4
33.0
\u2013
305.1
Results from joint ventures and associates
1.3
(0.3)
\u2013
6.4
\u2013
7.4
IFRIC 12 investment income
\u2013
\u2013
0.3
\u2013
\u2013
0.3
Other net finance costs*
\u2013
\u2013
\u2013
\u2013
(29.1)
(29.1)
Profit/(loss) before tax
(27.1)
196.8
103.7
39.4
(29.1)
283.7
Marine
Nuclear
Land
Aviation
Unallocated
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
\u00a3m
*
Revenue
1,576.4
1,816.0
1,116.6
322.3
\u2013
4,831.3
Underlying operating profit
96.5
160.3
86.2
19.9
\u2013
362.9
Specific Adjusting Items (note 2)
Amortisation of acquired intangibles
(5.5)
\u2013
\u2013
(2.7)
\u2013
(8.2)
Business acquisition, merger and divestment related items
1.5
\u2013
\u2013
\u2013
\u2013
1.5
Fair value gain/(loss) on forward rate contracts to be settled in
future periods
6.8
\u2013
\u2013
(0.3)
\u2013
6.5
Profit or loss from amendment, curtailment, settlement or
equalisation of Group pension schemes
\u2013
1.1
0.1
\u2013
\u2013
1.2
Operating profit
99.3
161.4
86.3
16.9
\u2013
363.9
Results from joint ventures and associates
(0.5)
0.3
\u2013
(2.5)
\u2013
(2.7)
IFRIC 12 investment income
\u2013
\u2013
0.4
\u2013
\u2013
0.4
Other net finance costs*
\u2013
\u2013
\u2013
\u2013
(32.5)
(32.5)
Profit/(loss) before tax
98.8
161.7
86.7
14.4
(32.5)
329.1
* Other net finance costs are not allocated to a specific sector.
Revenues of \u00a33.0 billion (2025: \u00a33.0 billion) are derived from a single external customer. These revenues are attributable across
all reportable segments.
Segment assets and liabilities
The reportable segment assets and liabilities at 31 March 2026 and 31 March 2025 and capital expenditure and lease principal payments for
the years then ended are as follows:
Assets
Liabilities
Capital expenditure
Lease payments
2026
2025
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Marine
916.6
845.9
1,066.5
901.8
34.4
18.9
4.1
4.4
Nuclear
761.0
761.9
378.9
378.3
54.8
69.8
4.1
5.7
Land
663.4
665.9
387.7
424.5
3.5
6.1
6.6
10.3
Aviation
521.1
453.5
366.6
313.0
58.2
25.3
18.8
17.9
Unallocated*
1,068.0
963.0
1,101.1
1,050.8
9.4
8.2
10.9
7.1
Group total
3,930.1
3,690.2
3,300.8
3,068.4
160.3
128.3
44.5
45.4
* All assets and liabilities are allocated to their appropriate reportable segments except for cash, cash equivalents, borrowings, income and deferred
tax balances and retirement benefit surpluses which are included in the unallocated segment.
Capital expenditure represents additions to property, plant and equipment and intangible assets. Proceeds from the sale of assets totalling
\u00a353.1 million (2025: \u00a36.1 million) are not included above, and are predominantly in the Aviation sector (2025: Land sector). See note 18
relating to the treatment of amounts payable in respect of capital expenditure.
The segmental analysis of joint ventures and associates is detailed in note 14.
Segmental depreciation and amortisation
The segmental depreciation on property, plant and equipment, right of use assets and amortisation of intangible assets for the years ended 31
March 2026 and 31 March 2025 is as follows:
Depreciation of property,
Depreciation of
Amortisation of
plant and equipment right of use assets intangible assets
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Marine
12.7
12.1
3.8
3.1
10.5
8.7
Nuclear
32.8
28.1
5.1
6.2
8.4
3.5
Land
3.4
4.4
6.1
7.3
0.5
0.6
Aviation
9.4
7.2
21.5
11.3
2.3
2.8
Unallocated
7.7
7.2
9.7
3.3
6.0
11.9
Group total
66.0
59.0
46.2
31.2
27.7
27.5
Segmental asset impairments
The segmental impairment on property, plant and equipment, right of use assets and intangible assets for the years ended 31 March 2026
and 31 March 2025 is as follows:
Impairment of property,
Impairment of
Impairment of
plant and equipment right of use assets intangible assets
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Marine
0.1
\u2013
\u2013
\u2013
\u2013
\u2013
Nuclear
\u2013
\u2013
0.1
\u2013
\u2013
\u2013
Land
\u2013
\u2013
1.4
0.1
\u2013
\u2013
Aviation
(1.9)
\u2013
\u2013
\u2013
\u2013
\u2013
Unallocated
3.3
\u2013
2.7
1.7
\u2013
\u2013
Group total
1.5
\u2013
4.2
1.8
\u2013
\u2013
Geographic analysis of non-current assets
The geographic analysis for non-current assets by location of those assets for the years ended 31 March 2026 and 31 March 2025 is
as follows:
2026
2025
\u00a3m \u00a3m
United Kingdom
1,493.0
1,473.3
Rest of Europe
66.4
64.9
Africa
28.5
26.0
North America
78.9
58.3
Australasia
162.5
154.3
Rest of World
2.4
0.9
Non-current segment assets
1,831.7
1,777.7
Retirement benefits
77.3
98.8
Lease receivables
31.4
26.2
Derivatives
9.9
5.1
Deferred tax asset
96.2
102.8
Total non-current assets
2,046.5
2,010.6
Geographic analysis of revenue
The geographic analysis of revenue by origin of customer for the years ended 31 March 2026 and 31 March 2025 is as follows:
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
United Kingdom
769.3
2,068.5
622.1
185.1
3,645.0
Rest of Europe
38.8
\u2013
26.1
155.0
219.9
Africa
\u2013
\u2013
336.9
\u2013
336.9
North America
215.4
1.9
\u2013
26.8
244.1
Australasia
187.2
\u2013
99.3
64.5
351.0
Rest of World
380.8
\u2013
\u2013
\u2013
380.8
Group total
1,591.5
2,070.4
1,084.4
431.4
5,177.7
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
United Kingdom
853.3
1,815.8
628.4
150.8
3,448.3
Rest of Europe
40.6
\u2013
31.0
95.7
167.3
Africa
\u2013
\u2013
348.6
\u2013
348.6
North America
197.7
0.2
\u2013
13.0
210.9
Australasia
195.4
\u2013
108.6
62.8
366.8
Rest of World
289.4
\u2013
\u2013
\u2013
289.4
Group total
1,576.4
1,816.0
1,116.6
322.3
4,831.3
The analysis of revenue split between market sectors for the years ended 31 March 2026 and 31 March 2025 is as follows:
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Defence
1,230.4
1,784.1
571.2
236.4
3,822.1
Civil
361.1
286.3
513.2
195.0
1,355.6
Revenue
1,591.5
2,070.4
1,084.4
431.4
5,177.7
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Defence
1,296.4
1,575.0
547.3
160.8
3,579.5
Civil
280.0
241.0
569.3
161.5
1,251.8
Revenue
1,576.4
1,816.0
1,116.6
322.3
4,831.3
During the year, the Group has recognised a \u00a329.1 million reversal of revenue in respect of performance obligations satisfied or partially
satisfied in previous periods (2025: an increase in revenue of \u00a345.3 million). The current year reversal is significantly impacted by the
Type 31 charge as described in Note 1 to the accounts. Excluding the impact of Type 31, the Group has recognised \u00a350.1 million of revenue
in respect of performance obligations satisfied or partially satisfied in previous periods, broadly in line with the amount recorded in 2025.
This reflects the increase in expected outturn margin across our long-term contracts. We normally expect contract margins to increase
gradually over time as risk on each contract reduces and as we meet the \u2018highly probable\u2019 test under IFRS 15 to recognise variable
consideration. This therefore represents a normal part of our trading.
At 31 March 2026, there is \u00a35.9 billion (2025 restated: \u00a36.8 billion) of transaction price on contracts with customers that has been allocated to
unsatisfied or partially satisfied performance obligations (note this metric has been prepared for IFRS 15 disclosure purposes and therefore
does not align to the Group\u2019s contract backlog). Contract backlog is based on the full contractual term of the Group\u2019s agreements whilst the
IFRS 15 disclosure may be a shorter contractual period in the event that the customer has the ability to exit contracts prior to the full term for
non-substantive penalty payments. Management expects that 51.2% (2025 restated: 40.4%) of the transaction price allocated to unsatisfied
performance obligations as at 31 March 2026 will be recognised as revenue during the next reporting period. A further 42.6% (2025 restated:
48.8%) of the transaction price allocated to unsatisfied performance obligations is expected to be recognised as revenue in years two to five
after 31 March 2026.
Comparatives were restated following identification of additional contracts for which the customer has the ability to exit prior to the full term
for non-substantive penalty payments. This has a resulting impact on the disclosed percentages.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-568": { "value": "Revenue recognition Revenue recognised represents income derived from contracts with customers for the provision of goods and services in the ordinary course of the Group\u2019s activities. The Group recognises revenue in line with IFRS 15, Revenue from Contracts with Customers. IFRS 15 requires the identification of performance obligations in contracts, determination of contract price, allocation of the contract price to the performance obligations and recognition of revenue as performance obligations are satisfied. (i) Performance obligations Contracts are assessed to identify each promise to transfer either a distinct good or service or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Goods and services are distinct if the customer can benefit from them either on their own or together with other resources readily available to the customer and they are separately identifiable in the contract. In assessing whether the performance obligations are separately identifiable, the services are reviewed to determine the extent to which the goods or services within a contract are interrelated and whether they modify other goods or services within a contract. The Group also considers whether the goods and/or services are integrated and represent a combined output for which the customer has contracted. The integrated output nature of many of the services provided by the Group results in some contracts only having one performance obligation. (ii) Determination of contract price The contract price represents the amount of consideration which the Group expects to be entitled to in exchange for delivering the promised goods or services to the customer. Contracts can include both fixed and variable consideration. Inclusion of variable consideration in the contract price requires the exercise of judgement in relation to the amount to be received through unpriced contract variations and claims (see section (v) below for further details) and variable elements of existing contracts, such as performance-based penalties and incentives, and gain/pain share arrangements where cost under/over spends are shared with the customer. Given the long-term nature of the Group\u2019s contracts with customers, a number of arrangements include clauses to allow for inflation within the transaction price. Such inflation clauses are treated as variable consideration. Elements of variable consideration are estimated at contract inception and at the end of each reporting period. Any required adjustment is made against the contract price in the period in which the adjustment occurs. Variable consideration is estimated using either the expected value or the most likely amount and is added to the transaction price only to the extent that it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognised once the underlying uncertainty is resolved. This judgement is made by suitably qualified and experienced personnel based on the contract terms, status of negotiations with customers and historical experience with customers and with similar contracts. As part of this judgement, variable consideration may be constrained until the uncertainty is resolved. In the case of unpriced variations these will be constrained to the extent that such variable consideration is not considered highly probable. Variable consideration may be included in the total transaction price or, in certain circumstances, may be allocated to a specific time period. Where variable consideration is allocated to a specific time period this will typically be in relation to performance related deductions. (iii) Allocation of contract price to performance obligations Given the bespoke nature of many of the goods and services the Group provides, standalone selling prices are generally not observable and, in these circumstances, the Group allocates the contract price to performance obligations based on cost plus margin. This amount would be the standalone selling price of each performance obligation if contracted with a customer separately. (iv) Revenue and profit recognition Performance obligations are satisfied, and revenue recognised, as control of goods and services is transferred to the customer. Control can be transferred at a point in time or over time and the Group determines, for each performance obligation, whether it is satisfied over time or at a point in time. Revenue recognised over time Performance obligations are satisfied over time if any of the following criteria are satisfied: \u2022 the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs; or \u2022 the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for work done; or \u2022 the Group\u2019s performance creates or enhances an asset controlled by the customer. Typical performance obligations in the Group\u2019s contracts that are recognised over time include the delivery of services (such as maintenance, engineering and training), as the customer simultaneously receives and consumes the benefits of the Group\u2019s performance as it performs the services. Revenue from the design, manufacture and enhancement of bespoke assets is also recognised over time, as the Group\u2019s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date, being recovery of costs incurred in satisfying the performance obligation plus a reasonable profit margin. Where the Group satisfies performance obligations over time, the Group primarily uses an input method to measure satisfaction of each performance obligation based on costs incurred compared to total estimated contract costs. For the majority of the Group\u2019s contracts, this is deemed to be the most appropriate method to measure Babcock\u2019s effort in satisfying the applicable performance obligations. Costs are included in the measurement of progress towards satisfying the performance obligation to the extent that there is a direct relationship between the input and satisfaction of the performance obligation. For contracts where costs incurred is not deemed to be the most appropriate measure, the Group uses time elapsed to measure satisfaction of the performance obligation. Under most of the Group\u2019s contracts, the customer pays in accordance with a pre-arranged payment schedule or once milestones have been met. If the amount of revenue recognised (as measured by the methods described above) exceeds the amount of cash received from the customer then the difference will be held on the statement of financial position. This will typically be comprised of a mixture of contract assets and trade receivables. If the amount of cash collected together with amounts due under the contract but uncollected exceeds the amount of revenue recognised then the difference is also held on the statement of financial position as a contract liability. See note 16 and note 18 for further details on how contract assets and liabilities are recognised. Revenue recognised at a point in time If control of the goods or services is not transferred to the customer over time, then revenue is recognised at the point in time that control is transferred to the customer. Point in time recognition mainly applies to sale of goods. Control typically transfers to the customer when the customer has legal title to the goods and this is usually coincident with delivery of the goods to the customer and right to receive payment by the Group. These revenues are delivered predominantly by the Aviation and Land sectors and include sales of equipment to commercial customers and procurement of consumables on behalf of the Ministry of Defence (MOD). Sale of goods at a point in time represents approximately 6% of Group revenues (2025: 7%). Assessment of contract profitability Profit is recognised to the extent that the final outcome on contracts can be reliably assessed. Contract outturn assessments are carried out on a contract-by-contract basis, including consideration of technical and other risks, by suitably qualified and experienced personnel and the assessments of all significant contracts are subject to review and challenge. Estimating contract revenues can involve judgements around whether the Group will meet performance targets and/or earn incentives, as well as consideration as to whether it is necessary to constrain variable revenues to meet the highly probable not to significantly reverse test set out in paragraph 56 of IFRS 15. When considering variations, claims and contingencies, the Group analyses various factors including the contractual terms, status of negotiations with the customer and historical experience with that customer and with similar contracts. Estimates of costs include assessment of contract contingencies arising out of technical, commercial, operational and other risks. The assessments of all significant contract outturns are subject to review and challenge and estimation uncertainty is resolved on a contract-by-contract basis as contracts near the end of the project lifecycle. If a contract is deemed to be loss making the present obligation is recognised and measured as provision. Further detail is included in the Provisions accounting policy. (v) Contract modifications Claims and variations The Group\u2019s contracts are often amended for changes in the customers\u2019 requirements. Contract modifications can relate to changes in both contract scope and price arising in the ordinary course of delivering contracts, which are referred to as contract variations. Such variations may arise as a result of customer requests or instructions or from requests from the Group in response to matters arising during the delivery of contracts. For example, some contracts include the requirement to conduct surveys and to report on or to recommend additional work as required. Some contracts may require the Group to proceed with variations and to agree pricing subsequently. See further detail on accounting for contract modifications below. Contract modifications can also refer to changes in price only, with no change in scope, where there is a difference of view or dispute in relation to interpretation of contracts. These contract claims and variations are considered to be modifications as referred to in paragraph 18 of IFRS 15. Accounting for contract modifications The Group accounts for contract modifications in one of three ways, based on the facts and circumstances of the contract modification: 1. Prospectively, as an additional, separate contract; 2. Prospectively, as a termination of the existing contract and creation of a new contract; or 3. As part of the original contract using a cumulative catch-up. The Group recognises contract variations, which impact both scope and price, when they are approved in accordance with IFRS 15. The Group\u2019s preferred approach is to approve contract modifications by formal contract amendment. However, the approval of contract modifications may be required to be carried out at pace and other mechanisms, informed by established customer relationships and local working arrangements, can be used to achieve approval of contract modifications. In approving contract modifications in these circumstances, the Group considers the scope of the contract modification in the context of the contract scope and contract terms. Contract variations where the formal contract amendment has not been received but which are, in management\u2019s judgement, approved are accounted for as a contract modification in accordance with IFRS 15 paragraph 18. Revenue from these contract variations is treated as variable consideration and subject to constraint as outlined in section (ii) above, until the pricing is agreed. Contract claims are also considered to be contract modifications in accordance with IFRS 15, and revenue is subject to constraint as outlined in section (ii). Claims and variations which are not deemed to be contract modifications Claims can also be raised by Babcock against third-party sub-contractors or suppliers to the Group. As these do not relate to contracts with customers, but rather relate to contracts with suppliers, they are not accounted for under IFRS 15. The Group\u2019s accounting policy is to account for such claims in accordance with the contingent asset guidance per IAS 37. Income in relation to these claims will only be recognised once it is virtually certain. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-519": { "value": "Geographic analysis of non-current assets The geographic analysis for non-current assets by location of those assets for the years ended 31 March 2026 and 31 March 2025 is as follows:
2026
2025
\u00a3m \u00a3m
United Kingdom
1,493.0
1,473.3
Rest of Europe
66.4
64.9
Africa
28.5
26.0
North America
78.9
58.3
Australasia
162.5
154.3
Rest of World
2.4
0.9
Non-current segment assets
1,831.7
1,777.7
Retirement benefits
77.3
98.8
Lease receivables
31.4
26.2
Derivatives
9.9
5.1
Deferred tax asset
96.2
102.8
Total non-current assets
2,046.5
2,010.6
Geographic analysis of revenue The geographic analysis of revenue by origin of customer for the years ended 31 March 2026 and 31 March 2025 is as follows:
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
6
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
United Kingdom
769.3
2,068.5
622.1
185.1
3,645.0
Rest of Europe
38.8
\u2013
26.1
155.0
219.9
Africa
\u2013
\u2013
336.9
\u2013
336.9
North America
215.4
1.9
\u2013
26.8
244.1
Australasia
187.2
\u2013
99.3
64.5
351.0
Rest of World
380.8
\u2013
\u2013
\u2013
380.8
Group total
1,591.5
2,070.4
1,084.4
431.4
5,177.7
Marine
Nuclear
Land
Aviation
Total
Year ended 31 March 202
5
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
United Kingdom
853.3
1,815.8
628.4
150.8
3,448.3
Rest of Europe
40.6
\u2013
31.0
95.7
167.3
Africa
\u2013
\u2013
348.6
\u2013
348.6
North America
197.7
0.2
\u2013
13.0
210.9
Australasia
195.4
\u2013
108.6
62.8
366.8
Rest of World
289.4
\u2013
\u2013
\u2013
289.4
Group total
1,576.4
1,816.0
1,116.6
322.3
4,831.3
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeographicalAreasExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-488": { "value": "
4. Operating profit for the year
The following items have been included in arriving at operating profit for the year:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Raw materials, subcontracts and other bought-in items used
2,215.5
2,093.0
Change in inventories of finished goods and work-in-progress
(40.9)
29.4
Other operating charges
104.4
12.2
Employee costs (note 6)
1,878.9
1,659.3
Non-payroll people-related costs (including health and safety, travel, training, recruitment and
subcontracted labour)
267.2
278.4
Facility costs (excluding amortisation charges shown below)
148.0
114.9
Legal and professional fees
98.8
98.3
Hire and vehicle costs (including short and low-value leases)
59.5
53.2
Insurance costs
23.1
21.9
Depreciation of property, plant and equipment (
note 12)
66.0
59.0
Depreciation of right-of-use assets (note 13)
46.2
31.2
Amortisation of intangible assets (note 11)
\u2022
Acquired intangibles
10.0
8.2
\u2022
Other
17.7
19.3
Impairment of property, plant and equipment (note 12)
1.5
\u2013
Impairment of right of use assets (note 13)
4.2
1.8
Gain on disposal of property, plant and equipment
(0.5)
(0.7)
Loss on disposal of intangible assets
0.2
\u2013
(Gain)/loss on disposal of right-of-use assets
(4.1)
0.1
Net foreign exchange gain
(3.4)
(0.4)
Gain on disposal of subsidiaries and joint ventures
\u2013
(1.5)
Gain on derivative instruments at fair value through profit or loss
(11.6)
(6.6)
Gain on trade and other receivables measured at fair value
(8.1)
(3.6)
Total operating charges
4,872.6
4,467.4
Services provided by the Group\u2019s auditor and network firms
During the year the Group (including its overseas subsidiaries) obtained the following services from the Group\u2019s auditor:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Audit fees:
Fees payable to the parent auditor and its associates for the audit of the parent company\u2019s individual
and consolidated financial statements
2.7
2.7
Fees payable to the parent auditor and its associates in respect of the audit of the Company\u2019s subsidiaries
6.2
6.4
Additional fees payable to the parent auditor and its associates in respect of the prior year audits of the
Company\u2019s subsidiaries
1.3
Audit related assurance fees
\u2013
\u2013
Fees for other services:
Other non-audit services
\u2013
\u2013
Total fees paid to the Group\u2019s auditor and network firms
10.2
9.1
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-520": { "value": "4. Operating profit for the year The following items have been included in arriving at operating profit for the year:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Raw materials, subcontracts and other bought-in items used
2,215.5
2,093.0
Change in inventories of finished goods and work-in-progress
(40.9)
29.4
Other operating charges
104.4
12.2
Employee costs (note 6)
1,878.9
1,659.3
Non-payroll people-related costs (including health and safety, travel, training, recruitment and
subcontracted labour)
267.2
278.4
Facility costs (excluding amortisation charges shown below)
148.0
114.9
Legal and professional fees
98.8
98.3
Hire and vehicle costs (including short and low-value leases)
59.5
53.2
Insurance costs
23.1
21.9
Depreciation of property, plant and equipment (
note 12)
66.0
59.0
Depreciation of right-of-use assets (note 13)
46.2
31.2
Amortisation of intangible assets (note 11)
\u2022
Acquired intangibles
10.0
8.2
\u2022
Other
17.7
19.3
Impairment of property, plant and equipment (note 12)
1.5
\u2013
Impairment of right of use assets (note 13)
4.2
1.8
Gain on disposal of property, plant and equipment
(0.5)
(0.7)
Loss on disposal of intangible assets
0.2
\u2013
(Gain)/loss on disposal of right-of-use assets
(4.1)
0.1
Net foreign exchange gain
(3.4)
(0.4)
Gain on disposal of subsidiaries and joint ventures
\u2013
(1.5)
Gain on derivative instruments at fair value through profit or loss
(11.6)
(6.6)
Gain on trade and other receivables measured at fair value
(8.1)
(3.6)
Total operating charges
4,872.6
4,467.4
Services provided by the Group\u2019s auditor and network firms During the year the Group (including its overseas subsidiaries) obtained the following services from the Group\u2019s auditor:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Audit fees:
Fees payable to the parent auditor and its associates for the audit of the parent company\u2019s individual
and consolidated financial statements
2.7
2.7
Fees payable to the parent auditor and its associates in respect of the audit of the Company\u2019s subsidiaries
6.2
6.4
Additional fees payable to the parent auditor and its associates in respect of the prior year audits of the
Company\u2019s subsidiaries
1.3
Audit related assurance fees
\u2013
\u2013
Fees for other services:
Other non-audit services
\u2013
\u2013
Total fees paid to the Group\u2019s auditor and network firms
10.2
9.1
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-545": { "value": "
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Raw materials, subcontracts and other bought-in items used
2,215.5
2,093.0
Change in inventories of finished goods and work-in-progress
(40.9)
29.4
Other operating charges
104.4
12.2
Employee costs (note 6)
1,878.9
1,659.3
Non-payroll people-related costs (including health and safety, travel, training, recruitment and
subcontracted labour)
267.2
278.4
Facility costs (excluding amortisation charges shown below)
148.0
114.9
Legal and professional fees
98.8
98.3
Hire and vehicle costs (including short and low-value leases)
59.5
53.2
Insurance costs
23.1
21.9
Depreciation of property, plant and equipment (
note 12)
66.0
59.0
Depreciation of right-of-use assets (note 13)
46.2
31.2
Amortisation of intangible assets (note 11)
\u2022
Acquired intangibles
10.0
8.2
\u2022
Other
17.7
19.3
Impairment of property, plant and equipment (note 12)
1.5
\u2013
Impairment of right of use assets (note 13)
4.2
1.8
Gain on disposal of property, plant and equipment
(0.5)
(0.7)
Loss on disposal of intangible assets
0.2
\u2013
(Gain)/loss on disposal of right-of-use assets
(4.1)
0.1
Net foreign exchange gain
(3.4)
(0.4)
Gain on disposal of subsidiaries and joint ventures
\u2013
(1.5)
Gain on derivative instruments at fair value through profit or loss
(11.6)
(6.6)
Gain on trade and other receivables measured at fair value
(8.1)
(3.6)
Total operating charges
4,872.6
4,467.4
12. Property, plant and equipment Property, plant and equipment is shown at cost less subsequent depreciation and impairment, except for land, which is shown at cost less impairment. Cost includes expenditure that is directly attributable to the acquisition of the items after the deduction of trade discounts and rebates. Items of property, plant and equipment are depreciated over their estimated useful lives to any estimated residual value, using the following rates:
Freehold property
2.0% to 8.0%
Leasehold property
Lower of useful economic life or lease term
Plant and equipment
6.6% to 33.3%
Aircraft airframes
2%
Major strategic aircraft spares are classified within property, plant and equipment. Aircraft assets, including spares, are disaggregated into separate components where the components have differing useful lives with the value of each rotable component being measured at the cost of replacement or overhaul of the component and the remaining value of the asset being attributed to the airframe component. Depreciation is provided on a straight-line basis, or in the case of certain aircraft components on an hours flown basis, to write off the cost of PPE over the estimated useful lives to their estimated residual value (reassessed at each financial year end). Subsequent expenditure on the replacement or overhaul of aircraft components is capitalised with the carrying value of the part replaced being written off. Subsequent expenditure on maintenance which enhances the performance of aircraft airframes is capitalised whilst expenditure on replacing elements of aircraft airframes is expensed. Components of owned aircraft which are maintained under Power- by-the-hour maintenance arrangements are not depreciated with the associated payments to the maintenance provider instead being expensed as incurred, as the residual value of the asset is deemed to be equivalent to the cost of the asset. Any additional payments made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income at the time at which they are incurred or received. The useful economic life of aircraft is based on management\u2019s estimate of how long the aircraft will continue to be operated in the same manner or a similar manner, typically not exceeding 30 years. Where the Group acquires aircraft which have already been used, and may already exceed the typical useful economic life, an individual assessment of useful economic life is performed. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets include both internally generated intangible assets and property, plant and equipment. To the extent that variable rate borrowings are used to finance a qualifying asset and are hedged in an effective cash flow hedge of interest rate risk, the effective portion of the derivative is recognised in Other Comprehensive Income and reclassified to the Income Statement when the qualifying asset impacts profit or loss. To the extent that fixed rate borrowings are used to finance a qualifying asset and are hedged in an effective fair value hedge of interest rate risk, the capitalised borrowing costs reflect the hedged interest rate. For the year ended 31 March 2026, the average capitalisation rate of borrowing costs was 3.9% (2025: 4.0%). All other borrowing costs are recognised in the Income Statement in the period in which they are incurred. Impairment For property, plant and equipment the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level. Where an asset does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years.
Assets in
Freehold Leasehold Plant and Aircraft course of
property property equipment fleet construction Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cost
At 1 April 2025
225.2
34.3
602.4
112.3
128.7
1,102.9
Additions
14.1
0.6
8.1
21.8
110.8
155.4
Transfers to other intangible assets (note 11)
\u2013
\u2013
(0.4)
\u2013
\u2013
(0.4)
Reclassification from AUC to in-use assets
1.6
\u2013
72.6
8.5
(82.7)
\u2013
Reclassification cost/depreciation
(0.4)
\u2013
2.8
\u2013
\u2013
2.4
Reclassification between categories
(0.8)
(16.4)
17.1
0.1
\u2013
\u2013
Disposals
(7.6)
(7.3)
(79.7)
(27.8)
(27.0)
(149.4)
Capitalised borrowing costs
\u2013
\u2013
\u2013
\u2013
3.7
3.7
Exchange adjustments
0.3
0.2
3.7
3.3
1.4
8.9
At 31 March 2026
232.4
11.4
626.6
118.2
134.9
1,123.5
Accumulated depreciation
At 1 April 2025
90.3
15.1
398.6
33.7
6.3
544.0
Depreciation charge for the year
9.8
0.9
49.6
5.7
\u2013
66.0
Impairment charge for the year
\u2013
\u2013
3.3
0.1
\u2013
3.4
Impairment reversals in the year
\u2013
\u2013
\u2013
\u2013
(1.9)
(1.9)
Transfers to other intangible
assets (note 11)
\u2013
\u2013
3.2
\u2013
\u2013
3.2
Reclassification between categories
(0.7)
(1.1)
1.8
\u2013
\u2013
\u2013
Reclassification cost/depreciation
(0.4)
\u2013
2.8
\u2013
\u2013
2.4
Disposals
(7.3)
(7.3)
(78.8)
(5.1)
\u2013
(98.5)
Exchange adjustments
0.1
0.2
1.9
1.4
\u2013
3.6
At 31 March 2026
91.8
7.8
382.4
35.8
4.4
522.2
Net book value at 31 March 2026
140.6
3.6
244.2
82.4
130.5
601.3
Cost
At 1 April 2024
220.9
15.4
572.6
87.4
124.1
1,020.4
Additions
2.3
1.0
11.8
17.8
72.1
105.0
Transfers to other intangible assets (note 11)
\u2013
\u2013
(4.4)
\u2013
\u2013
(4.4)
Transfers from right of use assets (note 13)
\u2013
\u2013
5.0
\u2013
0.5
5.5
Reclassification from AUC to in-use assets
2.5
18.6
36.2
13.5
(70.8)
\u2013
Disposals
(0.4)
(0.7)
(13.3)
(3.6)
(1.7)
(19.7)
Disposal of business
\u2013
\u2013
(3.6)
\u2013
\u2013
(3.6)
Capitalised borrowing costs
\u2013
\u2013
\u2013
\u2013
5.0
5.0
Exchange adjustments
(0.1)
\u2013
(1.9)
(2.8)
(0.5)
(5.3)
At 31 March 2025
225.2
34.3
602.4
112.3
128.7
1,102.9
Accumulated depreciation
At 1 April 2024
79.8
13.0
378.8
25.4
6.3
503.3
Depreciation charge for the year
13.7
2.9
37.8
4.6
\u2013
59.0
Transfers to other intangible assets (note 11)
\u2013
\u2013
(2.9)
\u2013
\u2013
(2.9)
Transfers from right of use assets (note 13)
\u2013
\u2013
5.0
\u2013
\u2013
5.0
Reclassification between categories
(3.4)
\u2013
(4.3)
7.7
\u2013
\u2013
Disposal of business
\u2013
\u2013
(3.6)
\u2013
\u2013
(3.6)
Disposals
\u2013
(0.7)
(11.0)
(2.6)
\u2013
(14.3)
Exchange adjustments
0.2
(0.1)
(1.2)
(1.4)
\u2013
(2.5)
At 31 March 2025
90.3
15.1
398.6
33.7
6.3
544.0
Net book value at 31 March 2025
134.9
19.2
203.8
78.6
122.4
558.9
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-546": { "value": "Services provided by the Group\u2019s auditor and network firms During the year the Group (including its overseas subsidiaries) obtained the following services from the Group\u2019s auditor:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Audit fees:
Fees payable to the parent auditor and its associates for the audit of the parent company\u2019s individual
and consolidated financial statements
2.7
2.7
Fees payable to the parent auditor and its associates in respect of the audit of the Company\u2019s subsidiaries
6.2
6.4
Additional fees payable to the parent auditor and its associates in respect of the prior year audits of the
Company\u2019s subsidiaries
1.3
Audit related assurance fees
\u2013
\u2013
Fees for other services:
Other non-audit services
\u2013
\u2013
Total fees paid to the Group\u2019s auditor and network firms
10.2
9.1
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-490": { "value": "5. Net finance costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance costs
Loans, overdrafts and associated interest rate hedges
32.7
37.1
Lease interest and foreign exchange movements on lease liabilities
15.3
15.1
Amortisation of issue costs of bank loan
3.1
2.1
Retirement benefit interest cost (note 25)
5.3
4.5
Other
11.1
7.4
Capitalised borrowing costs (note 12)
(3.7)
(5.0)
Total finance costs
63.8
61.2
Finance income
Bank deposits, loans and leases
29.0
28.7
IFRIC 12 Investment income
0.3
0.4
Retirement benefit interest
income (note 25)
5.7
\u2013
Total finance income
35.0
29.1
Net finance costs
28.8
32.1
Net finance costs decreased to \u00a328.8 million (2025: \u00a332.1 million). Included in other finance costs are \u00a30.9 million (2025: \u00a30.5 million) relating to the discounting of long-term receivables in France and \u00a38.6 million relating to interest charge on the unexpected outcome of a legal case in the US (2025: \u00a3nil) \u2013 see Note 20. In line with current UK tax legislation, the impact on finance costs from the capitalisation of borrowing costs is fully deductible against the Group\u2019s corporation tax liability, resulting in tax relief of \u00a30.9 million (FY25: \u00a31.3 million). Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-521": { "value": "5. Net finance costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance costs
Loans, overdrafts and associated interest rate hedges
32.7
37.1
Lease interest and foreign exchange movements on lease liabilities
15.3
15.1
Amortisation of issue costs of bank loan
3.1
2.1
Retirement benefit interest cost (note 25)
5.3
4.5
Other
11.1
7.4
Capitalised borrowing costs (note 12)
(3.7)
(5.0)
Total finance costs
63.8
61.2
Finance income
Bank deposits, loans and leases
29.0
28.7
IFRIC 12 Investment income
0.3
0.4
Retirement benefit interest
income (note 25)
5.7
\u2013
Total finance income
35.0
29.1
Net finance costs
28.8
32.1
Net finance costs decreased to \u00a328.8 million (2025: \u00a332.1 million). Included in other finance costs are \u00a30.9 million (2025: \u00a30.5 million) relating to the discounting of long-term receivables in France and \u00a38.6 million relating to interest charge on the unexpected outcome of a legal case in the US (2025: \u00a3nil) \u2013 see Note 20. In line with current UK tax legislation, the impact on finance costs from the capitalisation of borrowing costs is fully deductible against the Group\u2019s corporation tax liability, resulting in tax relief of \u00a30.9 million (FY25: \u00a31.3 million). Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-547": { "value": "5. Net finance costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance costs
Loans, overdrafts and associated interest rate hedges
32.7
37.1
Lease interest and foreign exchange movements on lease liabilities
15.3
15.1
Amortisation of issue costs of bank loan
3.1
2.1
Retirement benefit interest cost (note 25)
5.3
4.5
Other
11.1
7.4
Capitalised borrowing costs (note 12)
(3.7)
(5.0)
Total finance costs
63.8
61.2
Finance income
Bank deposits, loans and leases
29.0
28.7
IFRIC 12 Investment income
0.3
0.4
Retirement benefit interest
income (note 25)
5.7
\u2013
Total finance income
35.0
29.1
Net finance costs
28.8
32.1
Net finance costs decreased to \u00a328.8 million (2025: \u00a332.1 million). Included in other finance costs are \u00a30.9 million (2025: \u00a30.5 million) relating to the discounting of long-term receivables in France and \u00a38.6 million relating to interest charge on the unexpected outcome of a legal case in the US (2025: \u00a3nil) \u2013 see Note 20. In line with current UK tax legislation, the impact on finance costs from the capitalisation of borrowing costs is fully deductible against the Group\u2019s corporation tax liability, resulting in tax relief of \u00a30.9 million (FY25: \u00a31.3 million). Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-556": { "value": "5. Net finance costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance costs
Loans, overdrafts and associated interest rate hedges
32.7
37.1
Lease interest and foreign exchange movements on lease liabilities
15.3
15.1
Amortisation of issue costs of bank loan
3.1
2.1
Retirement benefit interest cost (note 25)
5.3
4.5
Other
11.1
7.4
Capitalised borrowing costs (note 12)
(3.7)
(5.0)
Total finance costs
63.8
61.2
Finance income
Bank deposits, loans and leases
29.0
28.7
IFRIC 12 Investment income
0.3
0.4
Retirement benefit interest
income (note 25)
5.7
\u2013
Total finance income
35.0
29.1
Net finance costs
28.8
32.1
Net finance costs decreased to \u00a328.8 million (2025: \u00a332.1 million). Included in other finance costs are \u00a30.9 million (2025: \u00a30.5 million) relating to the discounting of long-term receivables in France and \u00a38.6 million relating to interest charge on the unexpected outcome of a legal case in the US (2025: \u00a3nil) \u2013 see Note 20. In line with current UK tax legislation, the impact on finance costs from the capitalisation of borrowing costs is fully deductible against the Group\u2019s corporation tax liability, resulting in tax relief of \u00a30.9 million (FY25: \u00a31.3 million). Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-560": { "value": "5. Net finance costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance costs
Loans, overdrafts and associated interest rate hedges
32.7
37.1
Lease interest and foreign exchange movements on lease liabilities
15.3
15.1
Amortisation of issue costs of bank loan
3.1
2.1
Retirement benefit interest cost (note 25)
5.3
4.5
Other
11.1
7.4
Capitalised borrowing costs (note 12)
(3.7)
(5.0)
Total finance costs
63.8
61.2
Finance income
Bank deposits, loans and leases
29.0
28.7
IFRIC 12 Investment income
0.3
0.4
Retirement benefit interest
income (note 25)
5.7
\u2013
Total finance income
35.0
29.1
Net finance costs
28.8
32.1
Net finance costs decreased to \u00a328.8 million (2025: \u00a332.1 million). Included in other finance costs are \u00a30.9 million (2025: \u00a30.5 million) relating to the discounting of long-term receivables in France and \u00a38.6 million relating to interest charge on the unexpected outcome of a legal case in the US (2025: \u00a3nil) \u2013 see Note 20. In line with current UK tax legislation, the impact on finance costs from the capitalisation of borrowing costs is fully deductible against the Group\u2019s corporation tax liability, resulting in tax relief of \u00a30.9 million (FY25: \u00a31.3 million). Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-565": { "value": "5. Net finance costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance costs
Loans, overdrafts and associated interest rate hedges
32.7
37.1
Lease interest and foreign exchange movements on lease liabilities
15.3
15.1
Amortisation of issue costs of bank loan
3.1
2.1
Retirement benefit interest cost (note 25)
5.3
4.5
Other
11.1
7.4
Capitalised borrowing costs (note 12)
(3.7)
(5.0)
Total finance costs
63.8
61.2
Finance income
Bank deposits, loans and leases
29.0
28.7
IFRIC 12 Investment income
0.3
0.4
Retirement benefit interest
income (note 25)
5.7
\u2013
Total finance income
35.0
29.1
Net finance costs
28.8
32.1
Net finance costs decreased to \u00a328.8 million (2025: \u00a332.1 million). Included in other finance costs are \u00a30.9 million (2025: \u00a30.5 million) relating to the discounting of long-term receivables in France and \u00a38.6 million relating to interest charge on the unexpected outcome of a legal case in the US (2025: \u00a3nil) \u2013 see Note 20. In line with current UK tax legislation, the impact on finance costs from the capitalisation of borrowing costs is fully deductible against the Group\u2019s corporation tax liability, resulting in tax relief of \u00a30.9 million (FY25: \u00a31.3 million). Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-489": { "value": "6. Employee costs
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Wages and salaries
1,507.2
1,379.6
Social security costs
190.8
147.1
Share-based payments (note 24)
17.2
14.3
Pension costs \u2013 defined contribution plans (note 25)
155.4
101.6
Pension charges \u2013 defined benefit plans (note 25)
8.3
16.7
1,878.9
1,659.3
The average monthly number of people employed by the Group was:
2026
2025
Number Number
Marine
7,639
7,358
Nuclear
10,510
9,326
Land
6,132
6,346
Aviation
2,616
2,558
Central functions
1,294
1,270
28,191
26,858
Emoluments of the Executive Directors are included in employee costs above and reported in the Remuneration report. Employee costs are recognised as an expense in the period in which they are incurred with the exception of long-term employee benefits which are recognised in accordance with IAS 19 (see Note 25 for more details) and share based payment charges which are recognised in accordance with IFRS 2 (see Note 24 for more details). Key management compensation Key management is defined as those employees who are directly responsible for the operational management of the operating segments. The employees would typically report to the Chief Executive. The key management figures given below include Directors.
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Salaries and other short term employee benefits
16.0
16.1
Post-employment benefits
0.8
0.6
Termination benefits
0.7
0.8
Share-based payments
6.2
6.5
23.7
24.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-596": { "value": "Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-587": { "value": "Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-569": { "value": "Finance costs Finance costs are recognised as an expense in the period in which they are incurred unless they are attributable to an asset under construction, in which case finance costs are capitalised. Further detail on the capitalisation of borrowing costs is given in Note 12. Finance income Finance income is recognised in the period to which it relates using the effective interest rate method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-570": { "value": "Employee costs are recognised as an expense in the period in which they are incurred with the exception of long-term employee benefits which are recognised in accordance with IAS 19 (see Note 25 for more details) and share based payment charges which are recognised in accordance with IFRS 2 (see Note 24 for more details). The Group operates a number of pension schemes. The schemes are generally funded through payments to trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement as incurred. For defined benefit pension schemes, the cost of providing benefits is determined using the projected unit credit actuarial valuation method. The service cost and associated administration costs of the Group\u2019s pension schemes are charged to operating profit. In addition, a retirement benefit interest charge on the net pension deficit or interest credit on the net pension surplus is included in the income statement as a finance cost or finance income, respectively. Actuarial gains and losses are recognised directly in equity through the statement of comprehensive income so that the Group\u2019s statement of financial position reflects the IAS 19 measurement of the schemes\u2019 surpluses or deficits at the reporting date. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-522": { "value": "
Key management compensation
Key management is defined as those employees who are directly responsible for the operational management of the operating segments.
The employees would typically report to the Chief Executive. The key management figures given below include Directors.
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Salaries and other short term employee benefits
16.0
16.1
Post-employment benefits
0.8
0.6
Termination benefits
0.7
0.8
Share-based payments
6.2
6.5
23.7
24.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-491": { "value": "7. Taxation Current income tax Current income tax, including UK corporation tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the reporting date. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted, or substantively enacted, by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax assets are recognised where deferred tax liabilities exist and are expected to reverse in the same period as the deferred tax asset or in periods into which a loss arising from a deferred tax asset can be carried forward or back. In the absence of sufficient deferred tax liabilities, deferred tax assets are recognised where it is probable that there will be future taxable profits from other sources against which a loss arising from the deferred tax asset can be offset. In assessing the availability of future profits, the Group uses profit forecasts consistent with those used for goodwill impairment testing. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in either other comprehensive income or in equity.
Income tax expense
Total
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Analysis of tax expense in the year
Current tax
\u2022
UK current year expense
15.7
15.7
\u2022
UK prior year expense
9.9
2.5
\u2022
Overseas current year expense
28.5
20.6
\u2022
Overseas prior year benefit
(0.9)
\u2013
53.2
38.8
Deferred tax
\u2022
UK current year expense
47.2
53.0
\u2022
UK prior year benefit
(25.6)
(9.1)
\u2022
Overseas current year (benefit)/expense
(1.6)
1.7
\u2022
Overseas prior year benefit
(0.2)
(0.6)
\u2022
Impact of changes in tax rates
\u2013
(3.6)
19.8
41.4
Total income tax expense
73.0
80.2
The tax for the year is higher (2025: lower) than the standard rate of corporation tax in the UK. The differences are explained below:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Profit before tax
283.7
329.1
Profit on ordinary activities multiplied by rate of corporation tax in the UK of 25% (2025: 25%)
70.9
82.3
Effects of:
Expenses not deductible for tax purposes
11.8
5.7
Re-measurement of deferred tax in respect of statutory rate changes
\u2013
(3.6)
Difference in respect of share of results of joint ventures and associates\u2019 results
(1.9)
0.7
Prior year adjustments
(16.8)
(7.1)
Differences in respect of foreign rates
(1.5)
1.4
Unrecognised deferred tax movements
10.2
6.3
Deferred tax not previously recognised/derecognised
3.1
(0.9)
Non-taxable profits on disposals and non-deductible losses on disposals
\u2013
(0.2)
Pillar Two top-up tax
\u2013
0.5
Other
(2.8)
(4.9)
Total income tax expense
73.0
80.2
Further information on exceptional items and tax on exceptional items is detailed in note 2.
The Group is subject to taxation in several jurisdictions. The complexity of applicable rules may result in legitimate differences of
interpretation between the Group and taxing authorities, especially where an economic judgement or valuation is involved. The outcome of
tax authority disputes in such areas is not predictable, and to reflect the effect of these uncertain tax positions a provision is recorded which
represents management\u2019s assessment of the most likely outcome of each issue. At 31 March 2026 the Group held uncertain tax positions of
\u00a338.1 million (2025: \u00a344.6 million). Of this amount, \u00a324.7 million (2025: \u00a332.3 million) relates to ongoing discussions with HMRC regarding
prior periods.
In July 2023, the UK enacted legislation to introduce the \u2018Pillar Two\u2019 global minimum tax model rules of the OECD\u2019s Inclusive Framework on
Base Erosion and Profit Shifting and a UK qualified domestic minimum top-up tax. The legislation applies to the Group with effect from 1 April
2024. Under the Pillar Two rules, a top-up tax liability arises where the Group\u2019s effective tax rate in a jurisdiction is below 15%. The Group has
applied the temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax
when it is incurred.
The Group has recorded a Pillar Two global minimum tax charge of \u00a3nil million for the period (2025: \u00a30.5 million). Any top-up tax will be
borne by Babcock International Group PLC. It is not expected that Pillar Two top-up taxes will significantly increase the Group\u2019s tax charge in
future periods.
Deferred tax
Deferred tax assets and deferred tax liabilities have been offset if, and only if, there is a legally enforceable right in that jurisdiction to set off
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
Taxation Authorities:
2026
2025
\u00a3m \u00a3m
Deferred tax asset
96.2
102.8
Deferred tax liability
(5.1)
(5.9)
91.1
96.9
The movements in deferred tax assets and liabilities during the year are shown below.
Retirement
benefit
Tangible assets obligations Tax losses Other Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
(41.2)
1.5
115.5
21.1
96.9
Income statement (debit)/credit
(12.9)
(5.8)
(5.8)
4.7
(19.8)
Tax credit to other comprehensive income/equity
\u2013
12.3
\u2013
1.2
13.5
Exchange differences
(0.2)
\u2013
0.3
0.4
0.5
At 31 March 2026
(54.3)
8.0
110.0
27.4
91.1
At 1 April 2024
(45.1)
27.0
128.0
16.0
125.9
Income statement credit/(debit)
4.0
(21.6)
(33.6)
6.0
(45.2)
Tax credit to other comprehensive income/equity
\u2013
(3.9)
\u2013
(0.4)
(4.3)
Transfer to income tax receivable
\u2013
\u2013
17.2
\u2013
17.2
Disposal of business
\u2013
\u2013
\u2013
(0.1)
(0.1)
Income statement effect of changes in tax rates
\u2013
\u2013
4.2
(0.6)
3.6
Exchange differences
(0.1)
\u2013
(0.3)
0.2
(0.2)
At 31 March 2025
(41.2)
1.5
115.5
21.1
96.9
The net deferred tax assets of \u00a391.1 million (2025: \u00a396.9 million) include deferred tax assets of \u00a314.3 million (2025: \u00a312.5 million) and deferred tax liabilities of \u00a35.1 million (2025: \u00a35.9 million) in respect of the Group\u2019s non-UK operations. Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets because the Directors believe that it is probable that these assets will be recovered. The recognition of deferred tax assets in respect of losses can be subjective. The Group\u2019s approach to the recognition of deferred tax assets in respect of losses, including how the Group assesses future profitability for recognition purposes, is set out in the accounting policy above. Net deferred tax assets have been recognised principally in respect of operations in the following jurisdictions: United Kingdom (\u00a381.9 million), Australia (\u00a35.9 million), France (\u00a30.2 million), South Africa (\u00a31.8 million) and New Zealand (\u00a30.8 million). In the prior year net deferred tax assets were recognised principally in the following jurisdictions: United Kingdom (\u00a390.4 million), Australia (\u00a33.6 million), France (\u00a30.9 million), South Africa (\u00a37.4 million) and New Zealand (\u00a30.5 million). No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates and interests in joint ventures and joint operations where the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of temporary differences associated with such investments in subsidiaries, branches, associates and interests in joint ventures and joint operations is represented by their post acquisition retained earnings and amounted to \u00a3220.0 million (2025: \u00a3283 million). At the statement of financial position date, deferred tax assets of \u00a3110.0 million (2025: \u00a3115.5 million) have been recognised in respect of unused tax losses available for carry forward. No deferred tax asset has been recognised in respect of further unutilised tax losses carried forward (excluding capital losses) and interest of \u00a3162.7 million (2025: \u00a3124.2 million). In addition to these amounts, UK capital losses of \u00a3215.2 million (2025: \u00a3201.3 million) are being carried forward, with no deferred tax asset having been recognised. Where a deferred tax asset has not been recognised in respect of losses, this is because management considers that those jurisdictions are not likely to generate sufficient taxable income of the appropriate type in the foreseeable future. The amounts shown can be carried forward indefinitely. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-571": { "value": "Current income tax Current income tax, including UK corporation tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the reporting date. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted, or substantively enacted, by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax assets are recognised where deferred tax liabilities exist and are expected to reverse in the same period as the deferred tax asset or in periods into which a loss arising from a deferred tax asset can be carried forward or back. In the absence of sufficient deferred tax liabilities, deferred tax assets are recognised where it is probable that there will be future taxable profits from other sources against which a loss arising from the deferred tax asset can be offset. In assessing the availability of future profits, the Group uses profit forecasts consistent with those used for goodwill impairment testing. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in either other comprehensive income or in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-588": { "value": "Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted, or substantively enacted, by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax assets are recognised where deferred tax liabilities exist and are expected to reverse in the same period as the deferred tax asset or in periods into which a loss arising from a deferred tax asset can be carried forward or back. In the absence of sufficient deferred tax liabilities, deferred tax assets are recognised where it is probable that there will be future taxable profits from other sources against which a loss arising from the deferred tax asset can be offset. In assessing the availability of future profits, the Group uses profit forecasts consistent with those used for goodwill impairment testing. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in either other comprehensive income or in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-557": { "value": "In July 2023, the UK enacted legislation to introduce the \u2018Pillar Two\u2019 global minimum tax model rules of the OECD\u2019s Inclusive Framework on Base Erosion and Profit Shifting and a UK qualified domestic minimum top-up tax. The legislation applies to the Group with effect from 1 April 2024. Under the Pillar Two rules, a top-up tax liability arises where the Group\u2019s effective tax rate in a jurisdiction is below 15%. The Group has applied the temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. The Group has recorded a Pillar Two global minimum tax charge of \u00a3nil million for the period (2025: \u00a30.5 million). Any top-up tax will be borne by Babcock International Group PLC. It is not expected that Pillar Two top-up taxes will significantly increase the Group\u2019s tax charge in future periods. ", "dimensions": { "concept": "ifrs-full:DisclosureOfKnownOrReasonablyEstimableInformationAboutExposureToPillarTwoIncomeTaxesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-566": { "value": "Deferred tax Deferred tax assets and deferred tax liabilities have been offset if, and only if, there is a legally enforceable right in that jurisdiction to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same Taxation Authorities:
2026
2025
\u00a3m \u00a3m
Deferred tax asset
96.2
102.8
Deferred tax liability
(5.1)
(5.9)
91.1
96.9
The movements in deferred tax assets and liabilities during the year are shown below.
Retirement
benefit
Tangible assets obligations Tax losses Other Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
(41.2)
1.5
115.5
21.1
96.9
Income statement (debit)/credit
(12.9)
(5.8)
(5.8)
4.7
(19.8)
Tax credit to other comprehensive income/equity
\u2013
12.3
\u2013
1.2
13.5
Exchange differences
(0.2)
\u2013
0.3
0.4
0.5
At 31 March 2026
(54.3)
8.0
110.0
27.4
91.1
At 1 April 2024
(45.1)
27.0
128.0
16.0
125.9
Income statement credit/(debit)
4.0
(21.6)
(33.6)
6.0
(45.2)
Tax credit to other comprehensive income/equity
\u2013
(3.9)
\u2013
(0.4)
(4.3)
Transfer to income tax receivable
\u2013
\u2013
17.2
\u2013
17.2
Disposal of business
\u2013
\u2013
\u2013
(0.1)
(0.1)
Income statement effect of changes in tax rates
\u2013
\u2013
4.2
(0.6)
3.6
Exchange differences
(0.1)
\u2013
(0.3)
0.2
(0.2)
At 31 March 2025
(41.2)
1.5
115.5
21.1
96.9
The net deferred tax assets of \u00a391.1 million (2025: \u00a396.9 million) include deferred tax assets of \u00a314.3 million (2025: \u00a312.5 million) and deferred tax liabilities of \u00a35.1 million (2025: \u00a35.9 million) in respect of the Group\u2019s non-UK operations. Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets because the Directors believe that it is probable that these assets will be recovered. The recognition of deferred tax assets in respect of losses can be subjective. The Group\u2019s approach to the recognition of deferred tax assets in respect of losses, including how the Group assesses future profitability for recognition purposes, is set out in the accounting policy above. Net deferred tax assets have been recognised principally in respect of operations in the following jurisdictions: United Kingdom (\u00a381.9 million), Australia (\u00a35.9 million), France (\u00a30.2 million), South Africa (\u00a31.8 million) and New Zealand (\u00a30.8 million). In the prior year net deferred tax assets were recognised principally in the following jurisdictions: United Kingdom (\u00a390.4 million), Australia (\u00a33.6 million), France (\u00a30.9 million), South Africa (\u00a37.4 million) and New Zealand (\u00a30.5 million). No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates and interests in joint ventures and joint operations where the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of temporary differences associated with such investments in subsidiaries, branches, associates and interests in joint ventures and joint operations is represented by their post acquisition retained earnings and amounted to \u00a3220.0 million (2025: \u00a3283 million). At the statement of financial position date, deferred tax assets of \u00a3110.0 million (2025: \u00a3115.5 million) have been recognised in respect of unused tax losses available for carry forward. No deferred tax asset has been recognised in respect of further unutilised tax losses carried forward (excluding capital losses) and interest of \u00a3162.7 million (2025: \u00a3124.2 million). In addition to these amounts, UK capital losses of \u00a3215.2 million (2025: \u00a3201.3 million) are being carried forward, with no deferred tax asset having been recognised. Where a deferred tax asset has not been recognised in respect of losses, this is because management considers that those jurisdictions are not likely to generate sufficient taxable income of the appropriate type in the foreseeable future. The amounts shown can be carried forward indefinitely. 18. Trade and other payables and contract liabilities
2026
2025
\u00a3m \u00a3m
Current liabilities
Contract liabilities
786.2
759.4
Trade creditors
274.3
229.2
Amounts due to related parties (note 31)
\u2013
3.3
Other creditors
18.9
12.2
Defined contribution pension creditor
6.7
8.2
Other taxes and social security
100.5
84.6
Accruals
641.1
610.5
Trade and other payables
1,041.5
948.0
Trade and other payables and contract liabilities
1,827.7
1,707.4
Non-current liabilities
Non-current accruals
5.9
3.8
Other creditors
0.2
0.4
6.1
4.2
Included in creditors is \u00a319.0 million (2025: \u00a310.4 million) relating to capital expenditure which has therefore not been included in working capital movements within the cash flow statement. Significant changes in contract liabilities during the year are as follows:
Contract
liabilities
\u00a3m
1 April 2025
759.4
Revenue recognised that was included in the contract liability balance at the beginning of the year
(628.7)
Cash advanced
649.4
Exchange adjustment
6.1
31 March 2026
786.2
1 April 2024
685.3
Revenue recognised that was included in the contract liability balance at the beginning of the year
(552.3)
Cash advanced
631.0
Exchange adjustment
(4.6)
31 March 2025
759.4
Trade and other creditors are measured at amortised cost. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-561": { "value": "Deferred tax Deferred tax assets and deferred tax liabilities have been offset if, and only if, there is a legally enforceable right in that jurisdiction to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same Taxation Authorities:
2026
2025
\u00a3m \u00a3m
Deferred tax asset
96.2
102.8
Deferred tax liability
(5.1)
(5.9)
91.1
96.9
The movements in deferred tax assets and liabilities during the year are shown below.
Retirement
benefit
Tangible assets obligations Tax losses Other Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
(41.2)
1.5
115.5
21.1
96.9
Income statement (debit)/credit
(12.9)
(5.8)
(5.8)
4.7
(19.8)
Tax credit to other comprehensive income/equity
\u2013
12.3
\u2013
1.2
13.5
Exchange differences
(0.2)
\u2013
0.3
0.4
0.5
At 31 March 2026
(54.3)
8.0
110.0
27.4
91.1
At 1 April 2024
(45.1)
27.0
128.0
16.0
125.9
Income statement credit/(debit)
4.0
(21.6)
(33.6)
6.0
(45.2)
Tax credit to other comprehensive income/equity
\u2013
(3.9)
\u2013
(0.4)
(4.3)
Transfer to income tax receivable
\u2013
\u2013
17.2
\u2013
17.2
Disposal of business
\u2013
\u2013
\u2013
(0.1)
(0.1)
Income statement effect of changes in tax rates
\u2013
\u2013
4.2
(0.6)
3.6
Exchange differences
(0.1)
\u2013
(0.3)
0.2
(0.2)
At 31 March 2025
(41.2)
1.5
115.5
21.1
96.9
The net deferred tax assets of \u00a391.1 million (2025: \u00a396.9 million) include deferred tax assets of \u00a314.3 million (2025: \u00a312.5 million) and deferred tax liabilities of \u00a35.1 million (2025: \u00a35.9 million) in respect of the Group\u2019s non-UK operations. Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets because the Directors believe that it is probable that these assets will be recovered. The recognition of deferred tax assets in respect of losses can be subjective. The Group\u2019s approach to the recognition of deferred tax assets in respect of losses, including how the Group assesses future profitability for recognition purposes, is set out in the accounting policy above. Net deferred tax assets have been recognised principally in respect of operations in the following jurisdictions: United Kingdom (\u00a381.9 million), Australia (\u00a35.9 million), France (\u00a30.2 million), South Africa (\u00a31.8 million) and New Zealand (\u00a30.8 million). In the prior year net deferred tax assets were recognised principally in the following jurisdictions: United Kingdom (\u00a390.4 million), Australia (\u00a33.6 million), France (\u00a30.9 million), South Africa (\u00a37.4 million) and New Zealand (\u00a30.5 million). No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates and interests in joint ventures and joint operations where the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of temporary differences associated with such investments in subsidiaries, branches, associates and interests in joint ventures and joint operations is represented by their post acquisition retained earnings and amounted to \u00a3220.0 million (2025: \u00a3283 million). At the statement of financial position date, deferred tax assets of \u00a3110.0 million (2025: \u00a3115.5 million) have been recognised in respect of unused tax losses available for carry forward. No deferred tax asset has been recognised in respect of further unutilised tax losses carried forward (excluding capital losses) and interest of \u00a3162.7 million (2025: \u00a3124.2 million). In addition to these amounts, UK capital losses of \u00a3215.2 million (2025: \u00a3201.3 million) are being carried forward, with no deferred tax asset having been recognised. Where a deferred tax asset has not been recognised in respect of losses, this is because management considers that those jurisdictions are not likely to generate sufficient taxable income of the appropriate type in the foreseeable future. The amounts shown can be carried forward indefinitely. 16. Trade and other receivables and contract assets Trade and other receivables Trade receivables are measured at amortised cost. Other receivables are generally measured at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. An immaterial amount of other receivables are held at fair value through profit and loss. The measurement basis is disclosed in note 21. Debt factoring The Group engages in factoring of trade receivables in relation to certain non-UK operations of its Aviation sector as part of its working capital management arrangements. Under these arrangements, the Group transfers the rights to receive factored receivables to the factor in exchange for cash. The Group does not retain late payment or credit risk, and therefore trade receivables are not recognised under the applicable contracts. Any cash received from customers under these contracts is received as agent and transferred directly to the debt factoring counterparty. Contract assets and liabilities Contract assets represent amounts for which the Group has a conditional right to consideration in exchange for goods or services that the Group has transferred to the customer. Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has been received, or consideration is due, from the customer. Payment terms are set out in the contract and reflect the timing and performance of service delivery. For substantially all contracts the payment terms are broadly in line with expected satisfaction of performance obligations, and therefore recognition of revenue. Contract assets or liabilities arise on short term timing differences or in those more limited instances where payment terms do not reflect timing and performance of service delivery. In such cases, consideration is given to whether the contract includes a significant financing component with appropriate accounting. Provisions for expected credit losses Trade receivables, contract receivables and amounts due from related parties include a provision for expected credit losses. Provisions for expected credit losses are measured at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. Costs of obtaining a contract Directly attributable costs to obtain a contract with a customer that the Group would not have incurred if the contract had not been won are recognised as an asset and amortised on a straight-line basis. Costs to obtain a contract that would have been incurred regardless of whether the contract was won or lost are recognised as an expense when incurred. Costs to fulfil a contract Costs to fulfil a contract which do not fall within the scope of another standard are recognised under IFRS 15 as an asset and amortised on a straight-line basis when they meet all of the following criteria: (i) the costs relate directly to a contract or to an anticipated contract that can be specifically identified; (ii) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) the costs are expected to be recovered. Costs of recruiting or training staff are expensed as incurred.
31 March 2026
31 March 2025
\u00a3m \u00a3m
Non-current assets
Costs to obtain a contract
0.1
0.1
Costs to fulfil a contract
16.0
8.6
Other debtors
1.6
9.4
Non
-current trade and other receivables
17.7
18.1
Current assets
Trade receivables
316.1
303.4
Less: provision for impairment of receivables
(9.1)
(8.4)
Trade receivables \u2013 net
307.0
295.0
Retentions
5.1
8.8
Amounts due from related parties (note 31)
5.8
3.3
Other debtors
1
18.1
22.1
Other taxes and social security receivables
94.6
63.2
Prepayments
107.6
96.8
Costs to obtain a contract
\u2013
0.1
Costs to fulfil a contract
13.9
18.1
Current trade and other receivables
552.1
507.4
Contract assets
352.8
329.7
Current trade and other receivables and contract assets
904.9
837.1
1. Included in Other debtors are rebates receivable and other sundry receivables. No individual balance within other debtors is material. Details of expected credit losses on trade receivables are provided in note 22. There has been no impairment to either other receivables or contract assets during the year ended 31 March 2026 (2025: \u00a3nil). In the year ended 31 March 2026, amortisation of costs to obtain a contract and costs to fulfil a contract totalled \u00a38.3 million (2025: \u00a36.2 million). An impairment of \u00a3nil was recorded in relation to costs to obtain a contract or costs to fulfil a contract (2025: \u00a3nil). The Group recognises that there is an inherent element of estimation uncertainty and judgement involved in assessing contract profitability, as disclosed in note 1. Management have taken a best estimate view of contract outcomes based on the information currently available, after allowing for contingencies, and have applied a constraint to the variable consideration within revenue resulting in a revenue estimate that is suitably cautious under IFRS 15. Significant changes in contract assets during the year are as follows:
Contract
assets
\u00a3m
1 April 2025
329.7
Transfers from contract assets recognised at the beginning of the year to trade receivables
(287.9)
Increase due to work done not transferred from contract assets
306.6
Exchange adjustment
4.4
31 March 2026
352.8
1 April 2024
260.9
Transfers from contract assets recognised at the beginning of the year to receivables
(228.8)
Increase due to work done not transferred from contract assets
300.5
Exchange adjustment
(2.9)
31 March 2025
329.7
Details on the Group\u2019s approach to assess credit risk are included in note 22.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-548": { "value": "Deferred tax Deferred tax assets and deferred tax liabilities have been offset if, and only if, there is a legally enforceable right in that jurisdiction to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same Taxation Authorities:
2026
2025
\u00a3m \u00a3m
Deferred tax asset
96.2
102.8
Deferred tax liability
(5.1)
(5.9)
91.1
96.9
The movements in deferred tax assets and liabilities during the year are shown below.
Retirement
benefit
Tangible assets obligations Tax losses Other Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
(41.2)
1.5
115.5
21.1
96.9
Income statement (debit)/credit
(12.9)
(5.8)
(5.8)
4.7
(19.8)
Tax credit to other comprehensive income/equity
\u2013
12.3
\u2013
1.2
13.5
Exchange differences
(0.2)
\u2013
0.3
0.4
0.5
At 31 March 2026
(54.3)
8.0
110.0
27.4
91.1
At 1 April 2024
(45.1)
27.0
128.0
16.0
125.9
Income statement credit/(debit)
4.0
(21.6)
(33.6)
6.0
(45.2)
Tax credit to other comprehensive income/equity
\u2013
(3.9)
\u2013
(0.4)
(4.3)
Transfer to income tax receivable
\u2013
\u2013
17.2
\u2013
17.2
Disposal of business
\u2013
\u2013
\u2013
(0.1)
(0.1)
Income statement effect of changes in tax rates
\u2013
\u2013
4.2
(0.6)
3.6
Exchange differences
(0.1)
\u2013
(0.3)
0.2
(0.2)
At 31 March 2025
(41.2)
1.5
115.5
21.1
96.9
The net deferred tax assets of \u00a391.1 million (2025: \u00a396.9 million) include deferred tax assets of \u00a314.3 million (2025: \u00a312.5 million) and deferred tax liabilities of \u00a35.1 million (2025: \u00a35.9 million) in respect of the Group\u2019s non-UK operations. Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets because the Directors believe that it is probable that these assets will be recovered. The recognition of deferred tax assets in respect of losses can be subjective. The Group\u2019s approach to the recognition of deferred tax assets in respect of losses, including how the Group assesses future profitability for recognition purposes, is set out in the accounting policy above. Net deferred tax assets have been recognised principally in respect of operations in the following jurisdictions: United Kingdom (\u00a381.9 million), Australia (\u00a35.9 million), France (\u00a30.2 million), South Africa (\u00a31.8 million) and New Zealand (\u00a30.8 million). In the prior year net deferred tax assets were recognised principally in the following jurisdictions: United Kingdom (\u00a390.4 million), Australia (\u00a33.6 million), France (\u00a30.9 million), South Africa (\u00a37.4 million) and New Zealand (\u00a30.5 million). No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates and interests in joint ventures and joint operations where the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of temporary differences associated with such investments in subsidiaries, branches, associates and interests in joint ventures and joint operations is represented by their post acquisition retained earnings and amounted to \u00a3220.0 million (2025: \u00a3283 million). At the statement of financial position date, deferred tax assets of \u00a3110.0 million (2025: \u00a3115.5 million) have been recognised in respect of unused tax losses available for carry forward. No deferred tax asset has been recognised in respect of further unutilised tax losses carried forward (excluding capital losses) and interest of \u00a3162.7 million (2025: \u00a3124.2 million). In addition to these amounts, UK capital losses of \u00a3215.2 million (2025: \u00a3201.3 million) are being carried forward, with no deferred tax asset having been recognised. Where a deferred tax asset has not been recognised in respect of losses, this is because management considers that those jurisdictions are not likely to generate sufficient taxable income of the appropriate type in the foreseeable future. The amounts shown can be carried forward indefinitely. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-523": { "value": "Deferred tax Deferred tax assets and deferred tax liabilities have been offset if, and only if, there is a legally enforceable right in that jurisdiction to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same Taxation Authorities:
2026
2025
\u00a3m \u00a3m
Deferred tax asset
96.2
102.8
Deferred tax liability
(5.1)
(5.9)
91.1
96.9
The movements in deferred tax assets and liabilities during the year are shown below.
Retirement
benefit
Tangible assets obligations Tax losses Other Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
(41.2)
1.5
115.5
21.1
96.9
Income statement (debit)/credit
(12.9)
(5.8)
(5.8)
4.7
(19.8)
Tax credit to other comprehensive income/equity
\u2013
12.3
\u2013
1.2
13.5
Exchange differences
(0.2)
\u2013
0.3
0.4
0.5
At 31 March 2026
(54.3)
8.0
110.0
27.4
91.1
At 1 April 2024
(45.1)
27.0
128.0
16.0
125.9
Income statement credit/(debit)
4.0
(21.6)
(33.6)
6.0
(45.2)
Tax credit to other comprehensive income/equity
\u2013
(3.9)
\u2013
(0.4)
(4.3)
Transfer to income tax receivable
\u2013
\u2013
17.2
\u2013
17.2
Disposal of business
\u2013
\u2013
\u2013
(0.1)
(0.1)
Income statement effect of changes in tax rates
\u2013
\u2013
4.2
(0.6)
3.6
Exchange differences
(0.1)
\u2013
(0.3)
0.2
(0.2)
At 31 March 2025
(41.2)
1.5
115.5
21.1
96.9
The net deferred tax assets of \u00a391.1 million (2025: \u00a396.9 million) include deferred tax assets of \u00a314.3 million (2025: \u00a312.5 million) and
deferred tax liabilities of \u00a35.1 million (2025: \u00a35.9 million) in respect of the Group\u2019s non-UK operations.
Deferred tax assets have been recognised in respect of tax losses and other temporary differences giving rise to deferred tax assets because
the Directors believe that it is probable that these assets will be recovered. The recognition of deferred tax assets in respect of losses can be
subjective. The Group\u2019s approach to the recognition of deferred tax assets in respect of losses, including how the Group assesses future
profitability for recognition purposes, is set out in the accounting policy above.
Net deferred tax assets have been recognised principally in respect of operations in the following jurisdictions: United Kingdom (\u00a381.9 million),
Australia (\u00a35.9 million), France (\u00a30.2 million), South Africa (\u00a31.8 million) and New Zealand (\u00a30.8 million). In the prior year net deferred tax assets
were recognised principally in the following jurisdictions: United Kingdom (\u00a390.4 million), Australia (\u00a33.6 million), France (\u00a30.9 million), South
Africa (\u00a37.4 million) and New Zealand (\u00a30.5 million).
No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates
and interests in joint ventures and joint operations where the Group is in a position to control the timing of the reversal of the temporary
differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of temporary differences
associated with such investments in subsidiaries, branches, associates and interests in joint ventures and joint operations is represented by
their post acquisition retained earnings and amounted to \u00a3220.0 million (2025: \u00a3283 million).
At the statement of financial position date, deferred tax assets of \u00a3110.0 million (2025: \u00a3115.5 million) have been recognised in respect of
unused tax losses available for carry forward. No deferred tax asset has been recognised in respect of further unutilised tax losses carried
forward (excluding capital losses) and interest of \u00a3162.7 million (2025: \u00a3124.2 million). In addition to these amounts, UK capital losses of
\u00a3215.2 million (2025: \u00a3201.3 million) are being carried forward, with no deferred tax asset having been recognised. Where a deferred tax
asset has not been recognised in respect of losses, this is because management considers that those jurisdictions are not likely to generate
sufficient taxable income of the appropriate type in the foreseeable future. The amounts shown can be carried forward indefinitely.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-492": { "value": "8. Dividends
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Interim dividend for the year ended 31 March 2026 of 2.5p (2025: 2.0p) per 60p share
12.0
9.7
Final dividend for the year ended 31 March 2025 of 4.5p (2024: 3.3p) per 60p share
22.7
17.0
34.7
26.7
After the balance sheet date, the directors proposed a final dividend of 5.0p per ordinary share. The dividend proposed amounts to approximately \u00a324.5m, although the exact final payment will vary depending on the level of shares held by the Babcock Employee Share Trust and as Treasury Shares (Note 23). The dividend, which is subject to shareholder approval, will be paid on 25 September 2026 to shareholders registered on 14 August 2026. The payment of this dividend will not have any tax expense consequences for the Group. Dividends are recognised as a liability in the Group\u2019s financial statements in the period in which they are approved. Interim dividends are recognised when paid. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-8": { "value": "0.05", "decimals": 3, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "fact-9": { "value": "24500000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwners", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00", "unit": "iso4217:GBP" } }, "fact-572": { "value": "Dividends are recognised as a liability in the Group\u2019s financial statements in the period in which they are approved. Interim dividends are recognised when paid. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-493": { "value": "9. Earnings per share Number of shares
2026
2025
Number Number
Weighted average number of ordinary shares for the purpose of basic EPS
501,329,647
503,557,679
Effect of dilutive potential ordinary shares: share options
9,811,970
10,854,861
Weighted average number of ordinary shares for the purpose of diluted EPS
511,141,617
514,412,540
Earnings per share
Year ended 31 March 2026
Year ended 31 March 2025
Earnings
Earnings
attributable to Basic Diluted attributable to Basic Diluted
shareholders per share per share shareholders per share per share
\u00a3m Pence Pence \u00a3m Pence Pence
Earnings for the year
211.2
42.1
41.3
247.1
49.1
48.0
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust as treasury shares. Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust, plus the number of ordinary shares which are considered potentially dilutive ordinary shares in respect of share incentive schemes, should the vesting conditions have been met as at the year end. Details of share incentive schemes are provided in note 23 and note 24. Weighted average is calculated by reference to the date of transactions which increase or reduce the number of shares in issue or the number of shares held by the Employee Share Trust. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-494": { "value": "10. Goodwill Accounting policy information When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets, the difference is treated as purchased goodwill and capitalised. Goodwill is allocated to the cash generating unit (or group of cash generating units) expected to benefit from the business combination\u2019s synergies. Goodwill is predominantly monitored at the operating segment level (Marine, Nuclear and Aviation). Land is a singular operating and reporting segment however goodwill is separately monitored and allocated between the Group\u2019s Africa operations and those of the other Land operations. Goodwill is therefore separately tested for impairment between these two groups of cash generating units. When the fair value of the consideration for an acquired undertaking is less than the fair value of its separable net assets, the difference is taken directly to the income statement. Goodwill relating to acquisitions prior to 1 April 2004 is maintained at its net book value on the date of transition to IFRS. From that date goodwill is not amortised but is reviewed at least annually for impairment. Goodwill is reviewed for impairment annually at 31 March by assessing the recoverable amount of cash generating units (or groups of cash generating units) by reference to value-in-use calculations or fair value less cost to dispose if such information exists at the balance sheet date (typically only where the Group is progressed with disposal related activities that allow a fair value less cost to dispose to be readily determinable). Goodwill impairments are not subsequently reversed. On disposal of a subsidiary, joint venture or associate, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible.
31 March 2026
31 March 2025
\u00a3m \u00a3m
Cost
At 1 April
1,820.1
1,822.0
On disposal of business (note 27)
\u2013
(0.5)
Exchange adjustments
1.6
(1.4)
At 31 March
1,821.7
1,820.1
Accumulated impairment
At 1 April
1,041.9
1,041.9
At 31 March
1,041.9
1,041.9
Net book value at 31 March
779.8
778.2
Goodwill is allocated to groups of cash generating units (\u2018CGUs\u2019) as set out in the table below:
31 March 2026
31 March 2025
\u00a3m \u00a3m
Marine
295.2
293.6
Nuclear
233.1
233.1
Land (excluding Africa)
217.8
217.8
Aviation
32.0
32.0
Africa
1.7
1.7
779.8
778.2
The goodwill allocated to the Africa group of CGUs is immaterial and the Directors do not consider there to be any reasonably possible
changes in estimates that would result in impairment of this goodwill. No further disclosures are provided in relation to Africa.
Results of goodwill impairment test
The current year impairment test results have not resulted in an impairment for any of the Group\u2019s cash generating units. The recoverable
amount of the Group\u2019s goodwill was assessed by reference to value-in-use calculations. The value-in-use calculations are derived from risk-
adjusted cash flows from the Group\u2019s five-year plan. Terminal value assessments are included based on year five and an estimated long-
term, country-specific growth rate of 2.0% \u2013 4.7% (2025: 1.9 \u2013 4.7%). The process by which the Group\u2019s budget is prepared, reviewed and
approved benefits from historical experience, visibility of long-term work programmes in relation to work undertaken for the UK Government,
available government spending information (both UK and overseas), the Group\u2019s contract backlog, bid pipeline and the Group\u2019s tracking
pipeline which monitors opportunities prior to release of tenders. The budget process includes consideration of risks and opportunities at
contract and business level, and considered matters such as inflation.
Furthermore, in preparing this assessment the Group has considered the potential impact of climate change. In particular, the Group have
considered the impact of climate change on the useful economic lives of assets, disruption to key operating sites and supply chain, and
potential asset impairments. The Group identified climate risks (see page 124 for details) predominantly result in adverse cash outflows to the
business and have been modelled as such within our sensitivity analysis. The Group anticipates that a number of these climate risks may
result in additional cash inflows as associated climate related costs could be passed onto our customers offsetting the climate risk and a
conservative assessment of such cash inflow is also modelled within the sensitivity. These considerations did not have a material impact on
the goodwill impairment assessment.
Key assumptions
Key assumptions are based on past experience and expectations of future changes in the market, expected outturn on in-progress significant
contracts and pipeline reflecting prevailing economic forecasts, industry specific data, competitor activity and market dynamics.
Post-tax discount rates derived from the Group\u2019s post-tax weighted average cost of capital were used to discount the estimated risk-adjusted
cash flows. From these post-tax rates, pre-tax discount rates have been derived for the purpose of disclosure in line with the requirements of
the Standard. These pre-tax discount rates are considered to reflect the market assessment as at the period end date of the time value of
money and the risks specific to the cash-generating units.
Country-specific long-term growth rates are determined based on external analyst assessments of long-term real GDP outlooks in the associated countries. The country-specific real long-term growth rates and discount rates for the Group\u2019s operating segments are as follows:
31 March 2026 31 March 2025
Aviation
Land
Marine
Nuclear
Aviation
Land
Marine
Nuclear
Pre-tax discount rate
11.1%
12.4%
11.8%
13.3%
12.6%
11.9%
11.5%
11.9%
Post
-tax discount rate
9.8%
9.4%
9.5%
9.5%
9.3%
8.8%
8.5%
8.8%
Long-term real growth rate
2.1%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
Expected future cash flows used in discounted cash flow models are inherently uncertain and could materially change over time. They are significantly affected by a number of factors, such as demand for the Group\u2019s services, together with economic factors such as estimates of costs of revenue and future capital expenditure requirements. Expected future cash flows are also subject to estimation with regard to the impact of inflation \u2013 albeit a significant proportion of the Group\u2019s longer term revenue contracts include variable consideration in respect of inflation and therefore there is a natural offset on the impact of inflation on both costs and revenue. Key assumptions in relation to future cash flows included in the value-in-use models are set out below:
Group of CGUs
Key future cash flow assumption
Marine
Continuing delivery of work programmes with the UK Ministry of Defence, including the design and build of Type 31
frigates and the production of vertical missile tubes for the US
-UK common missile compartment programme.
Future international opportunities in shipbuilding.
Nuclear
Continuing delivery of naval nuclear services to the UK Ministry of Defence, including the FMSP contract and successor
programmes
. Continuing delivery of opportunities in the UK civil nuclear decommissioning programme together with
maintenance of ongoing spend in provision of nuclear engineering services to operational power stations.
Land
Continuing demand for equipment support and training from both military and civil customers, noting that significant
elements of equipment support and training are the subject of long
-term contracts, not all of which have been assumed
to renew.
Aviation
Continuing delivery of long-term contracts with the UK Ministry of Defence. Expansion of activities in key overseas territories.
We have performed sensitivity analysis incorporating reasonably possible changes in each of the above key assumptions. Sensitised cases all continue to show headroom and no required impairment as at 31 March 2026. 11. Other intangible assets Acquired intangibles Acquired intangibles are the estimated fair value of customer relationships and brands which are in part contractual, represented by the value of the acquired order book, and in part non-contractual, represented by the risk-adjusted value of future orders expected to arise from the relationships. The carrying value of the contractual element is amortised on a straight-line basis over the remaining period of the orders that are in process or the future period in which the orders will be fulfilled, as the case may be. The amortisation periods, reflecting the lengths of the various contracts, are mainly in the range one year to five years, with a minority of contracts and hence amortisation periods, up to 15 years. The carrying value of the non-contractual element is amortised over the period in which it is estimated that the relationships are likely to bring economic benefit via future orders. Relationships are valued on a contract-by-contract and customer-by-customer basis and the pattern of amortisation reflects the expected pattern of benefit in each case. The amortisation profile is determined on a case-by-case basis and in all cases results in a front-loaded profile, reflecting the greater certainty of future orders in the near term compared with the longer term. The amortisation period is in the range between one year to fifteen years. Acquired brand names are valued dependent on the characteristics of the market in which they operate and the likely value a third party would place on them. Useful lives are likewise dependent on market characteristics of the acquired business brand. These are amortised on a straight-line basis over a period of up to five years. Amortisation charges for the year are recorded in operating costs. Research and development Research expenditure is recognised as an expense as incurred. Costs incurred on development projects are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, when there is an intention to use or sell the asset, the financial and other resources available to complete the asset and only if the cost can be measured reliably. Other development expenditure is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Development costs that have been capitalised are amortised from the date the product is available for use on a straight-line basis over the period of its expected benefit but not exceeding seven years. Amortisation of development costs is expensed within operating costs in the Group income statement. Total research and development costs expensed in the period was \u00a3203.3 million (2025: \u00a3214.7 million). Amounts recognised as an expense are recorded within operating costs. Computer software Computer software, excluding the Group\u2019s Enterprise Resource Planning (ERP) system, includes software licences acquired. Configuration and customisation costs relating to Software-as-a-service agreements are expensed as incurred. Computer software is measured at cost less accumulated amortisation and is amortised on a straight-line basis over its expected useful life of between three and ten years. Amortisation of software costs is expensed within operating costs in the Group income statement. The Group is implementing an ERP system in phases over several years. The ERP system is being amortised over a period of up to 13 years to coincide with the expected support period from the software provider. The core asset commenced amortisation when it was available for use, which occurred once implementation was completed. Additional capitalisation for improved functionality as the platform is tailored and deployed at each respective business unit commences amortisation when those improved functionalities are available for use (when the ERP is implemented at the respective business unit). Impairment Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. Internally generated Internally software generated Acquired development development intangibles \u2013 costs and costs and Assets under relationships licences other construction Total \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m Cost At 1 April 2025 \u2013 restated 111.6 184.0 28.9 3.2 327.7 Additions \u2013 \u2013 \u2013 13.5 13.5 Transfers from property, plant and equipment ( note 12) \u2013 5.3 \u2013 \u2013 5.3 Transfers from AUC to in -use assets \u2013 4.9 0.9 (5.8) \u2013 Reclassification \u2013 0.4 (0.4) \u2013 \u2013 Disposals \u2013 (8.9) (2.0) (0.2) (11.1) Exchange adjustments 15.0 0.1 0.1 (0.1) 15.1 At 31 March 2026 126.6 185.8 27.5 10.6 350.5 Accumulated amortisation and impairment At 1 April 202 5 \u2013 restated 69.2 100.6 15.5 \u2013 185.3 Amortisation charge 10.0 15.3 2.4 \u2013 27.7 Transfers from property, plant and equipment (note 12) \u2013 1.7 \u2013 \u2013 1.7 Reclassification \u2013 0.3 (0.3) \u2013 \u2013 Disposals \u2013 (8.9) (2.0) \u2013 (10.9) Exchange adjustments 12.6 0.1 \u2013 \u2013 12.7 At 31 March 2026 91.8 109.1 15.6 \u2013 216.5 Net book value at 31 March 2026 34.8 76.7 11.9 10.6 134.0 Cost At 1 April 2024 \u2013 as previously reported 850.9 124.0 25.6 42.6 1,043.1 Restatement \u2013 see below (579.4) \u2013 \u2013 \u2013 (579.4) At 1 April 2024 \u2013 restated 271.5 124.0 25.6 42.6 463.7 Additions \u2013 2.5 1.3 18.5 22.3 Transfers from property, plant and equipment (note 12) \u2013 2.6 1.8 \u2013 4.4 Transfers from AUC to in-use assets \u2013 56.5 0.1 (56.6) \u2013 Disposal of business (2.9) \u2013 \u2013 \u2013 (2.9) Disposals \u2013 restated (147.5) (4.2) \u2013 \u2013 (151.7) Exchange adjustments (9.5) 2.6 0.1 (1.3) (8.1) At 31 March 2025 111.6 184.0 28.9 3.2 327.7 Accumulated amortisation and impairment At 1 April 2024 \u2013 as previously reported 797.8 85.6 10.9 \u2013 894.3 Restatement \u2013 see below (579.4) \u2013 \u2013 \u2013 (579.4) At 1 April 2024 \u2013 restated 218.4 85.6 10.9 \u2013 314.9 Amortisation charge 8.2 16.6 2.7 \u2013 27.5 Transfers from property, plant and equipment (note 12) \u2013 1.1 1.8 \u2013 2.9 Disposals \u2013 restated (147.5) (4.2) \u2013 \u2013 (151.7) Disposal of business (2.9) \u2013 \u2013 \u2013 (2.9) Exchange adjustments (7.0) 1.5 0.1 \u2013 (5.4) At 31 March 2025 69.2 100.6 15.5 \u2013 185.3 Net book value at 31 March 2025 42.4 83.4 13.4 3.2 142.4 Included in Internally generated software development costs and licences is \u00a373.3 million (2025: \u00a379.1 million) relating to the Group\u2019s ERP system, which is amortised over a period of up to 13 years with 5 years remaining. Included in the acquired intangibles \u2013 relationships balance is \u00a329.6 million (2025: \u00a335.0 million) relating to the acquisition of Naval Ship Management (Australia) Pty Ltd. This is being amortised over a total period of 15 years with 11 years remaining. Following a review of fully amortised acquired intangible assets, we have treated those assets which are fully depreciated as disposals and restated the prior year for consistency. This has no impact on the net book value or income statement in any period. The disposal of \u00a3141.0 million of gross cost and accumulated amortisation has been restated through the year to 31 March 2025 as the associated contract concluded during the period. The remaining \u00a3579.4 million of gross cost and accumulated amortisation has been restated through opening balances as at 1 April 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-524": { "value": "10. Goodwill Accounting policy information When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets, the difference is treated as purchased goodwill and capitalised. Goodwill is allocated to the cash generating unit (or group of cash generating units) expected to benefit from the business combination\u2019s synergies. Goodwill is predominantly monitored at the operating segment level (Marine, Nuclear and Aviation). Land is a singular operating and reporting segment however goodwill is separately monitored and allocated between the Group\u2019s Africa operations and those of the other Land operations. Goodwill is therefore separately tested for impairment between these two groups of cash generating units. When the fair value of the consideration for an acquired undertaking is less than the fair value of its separable net assets, the difference is taken directly to the income statement. Goodwill relating to acquisitions prior to 1 April 2004 is maintained at its net book value on the date of transition to IFRS. From that date goodwill is not amortised but is reviewed at least annually for impairment. Goodwill is reviewed for impairment annually at 31 March by assessing the recoverable amount of cash generating units (or groups of cash generating units) by reference to value-in-use calculations or fair value less cost to dispose if such information exists at the balance sheet date (typically only where the Group is progressed with disposal related activities that allow a fair value less cost to dispose to be readily determinable). Goodwill impairments are not subsequently reversed. On disposal of a subsidiary, joint venture or associate, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible.
31 March 2026
31 March 2025
\u00a3m \u00a3m
Cost
At 1 April
1,820.1
1,822.0
On disposal of business (note 27)
\u2013
(0.5)
Exchange adjustments
1.6
(1.4)
At 31 March
1,821.7
1,820.1
Accumulated impairment
At 1 April
1,041.9
1,041.9
At 31 March
1,041.9
1,041.9
Net book value at 31 March
779.8
778.2
Goodwill is allocated to groups of cash generating units (\u2018CGUs\u2019) as set out in the table below:
31 March 2026
31 March 2025
\u00a3m \u00a3m
Marine
295.2
293.6
Nuclear
233.1
233.1
Land (excluding Africa)
217.8
217.8
Aviation
32.0
32.0
Africa
1.7
1.7
779.8
778.2
The goodwill allocated to the Africa group of CGUs is immaterial and the Directors do not consider there to be any reasonably possible changes in estimates that would result in impairment of this goodwill. No further disclosures are provided in relation to Africa. Results of goodwill impairment test The current year impairment test results have not resulted in an impairment for any of the Group\u2019s cash generating units. The recoverable amount of the Group\u2019s goodwill was assessed by reference to value-in-use calculations. The value-in-use calculations are derived from risk- adjusted cash flows from the Group\u2019s five-year plan. Terminal value assessments are included based on year five and an estimated long- term, country-specific growth rate of 2.0% \u2013 4.7% (2025: 1.9 \u2013 4.7%). The process by which the Group\u2019s budget is prepared, reviewed and approved benefits from historical experience, visibility of long-term work programmes in relation to work undertaken for the UK Government, available government spending information (both UK and overseas), the Group\u2019s contract backlog, bid pipeline and the Group\u2019s tracking pipeline which monitors opportunities prior to release of tenders. The budget process includes consideration of risks and opportunities at contract and business level, and considered matters such as inflation. Furthermore, in preparing this assessment the Group has considered the potential impact of climate change. In particular, the Group have considered the impact of climate change on the useful economic lives of assets, disruption to key operating sites and supply chain, and potential asset impairments. The Group identified climate risks (see page 124 for details) predominantly result in adverse cash outflows to the business and have been modelled as such within our sensitivity analysis. The Group anticipates that a number of these climate risks may result in additional cash inflows as associated climate related costs could be passed onto our customers offsetting the climate risk and a conservative assessment of such cash inflow is also modelled within the sensitivity. These considerations did not have a material impact on the goodwill impairment assessment. Key assumptions Key assumptions are based on past experience and expectations of future changes in the market, expected outturn on in-progress significant contracts and pipeline reflecting prevailing economic forecasts, industry specific data, competitor activity and market dynamics. Post-tax discount rates derived from the Group\u2019s post-tax weighted average cost of capital were used to discount the estimated risk-adjusted cash flows. From these post-tax rates, pre-tax discount rates have been derived for the purpose of disclosure in line with the requirements of the Standard. These pre-tax discount rates are considered to reflect the market assessment as at the period end date of the time value of money and the risks specific to the cash-generating units.
Country-specific long-term growth rates are determined based on external analyst assessments of long-term real GDP outlooks in the
associated countries. The country-specific real long-term growth rates and discount rates for the Group\u2019s operating segments are as follows:
31 March 2026 31 March 2025
Aviation
Land
Marine
Nuclear
Aviation
Land
Marine
Nuclear
Pre-tax discount rate
11.1%
12.4%
11.8%
13.3%
12.6%
11.9%
11.5%
11.9%
Post
-tax discount rate
9.8%
9.4%
9.5%
9.5%
9.3%
8.8%
8.5%
8.8%
Long-term real growth rate
2.1%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
Expected future cash flows used in discounted cash flow models are inherently uncertain and could materially change over time. They are
significantly affected by a number of factors, such as demand for the Group\u2019s services, together with economic factors such as estimates of
costs of revenue and future capital expenditure requirements. Expected future cash flows are also subject to estimation with regard to the
impact of inflation \u2013 albeit a significant proportion of the Group\u2019s longer term revenue contracts include variable consideration in respect of
inflation and therefore there is a natural offset on the impact of inflation on both costs and revenue.
Key assumptions in relation to future cash flows included in the value-in-use models are set out below:
Group of CGUs
Key future cash flow assumption
Marine
Continuing delivery of work programmes with the UK Ministry of Defence, including the design and build of Type 31
frigates and the production of vertical missile tubes for the US
-UK common missile compartment programme.
Future international opportunities in shipbuilding.
Nuclear
Continuing delivery of naval nuclear services to the UK Ministry of Defence, including the FMSP contract and successor
programmes
. Continuing delivery of opportunities in the UK civil nuclear decommissioning programme together with
maintenance of ongoing spend in provision of nuclear engineering services to operational power stations.
Land
Continuing demand for equipment support and training from both military and civil customers, noting that significant
elements of equipment support and training are the subject of long
-term contracts, not all of which have been assumed
to renew.
Aviation
Continuing delivery of long-term contracts with the UK Ministry of Defence. Expansion of activities in key overseas territories.
We have performed sensitivity analysis incorporating reasonably possible changes in each of the above key assumptions. Sensitised cases
all continue to show headroom and no required impairment as at 31 March 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-602": { "value": "Accounting policy information When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets, the difference is treated as purchased goodwill and capitalised. Goodwill is allocated to the cash generating unit (or group of cash generating units) expected to benefit from the business combination\u2019s synergies. Goodwill is predominantly monitored at the operating segment level (Marine, Nuclear and Aviation). Land is a singular operating and reporting segment however goodwill is separately monitored and allocated between the Group\u2019s Africa operations and those of the other Land operations. Goodwill is therefore separately tested for impairment between these two groups of cash generating units. When the fair value of the consideration for an acquired undertaking is less than the fair value of its separable net assets, the difference is taken directly to the income statement. Goodwill relating to acquisitions prior to 1 April 2004 is maintained at its net book value on the date of transition to IFRS. From that date goodwill is not amortised but is reviewed at least annually for impairment. Goodwill is reviewed for impairment annually at 31 March by assessing the recoverable amount of cash generating units (or groups of cash generating units) by reference to value-in-use calculations or fair value less cost to dispose if such information exists at the balance sheet date (typically only where the Group is progressed with disposal related activities that allow a fair value less cost to dispose to be readily determinable). Goodwill impairments are not subsequently reversed. On disposal of a subsidiary, joint venture or associate, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-589": { "value": "Accounting policy information When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets, the difference is treated as purchased goodwill and capitalised. Goodwill is allocated to the cash generating unit (or group of cash generating units) expected to benefit from the business combination\u2019s synergies. Goodwill is predominantly monitored at the operating segment level (Marine, Nuclear and Aviation). Land is a singular operating and reporting segment however goodwill is separately monitored and allocated between the Group\u2019s Africa operations and those of the other Land operations. Goodwill is therefore separately tested for impairment between these two groups of cash generating units. When the fair value of the consideration for an acquired undertaking is less than the fair value of its separable net assets, the difference is taken directly to the income statement. Goodwill relating to acquisitions prior to 1 April 2004 is maintained at its net book value on the date of transition to IFRS. From that date goodwill is not amortised but is reviewed at least annually for impairment. Goodwill is reviewed for impairment annually at 31 March by assessing the recoverable amount of cash generating units (or groups of cash generating units) by reference to value-in-use calculations or fair value less cost to dispose if such information exists at the balance sheet date (typically only where the Group is progressed with disposal related activities that allow a fair value less cost to dispose to be readily determinable). Goodwill impairments are not subsequently reversed. On disposal of a subsidiary, joint venture or associate, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-574": { "value": "Accounting policy information When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets, the difference is treated as purchased goodwill and capitalised. Goodwill is allocated to the cash generating unit (or group of cash generating units) expected to benefit from the business combination\u2019s synergies. Goodwill is predominantly monitored at the operating segment level (Marine, Nuclear and Aviation). Land is a singular operating and reporting segment however goodwill is separately monitored and allocated between the Group\u2019s Africa operations and those of the other Land operations. Goodwill is therefore separately tested for impairment between these two groups of cash generating units. When the fair value of the consideration for an acquired undertaking is less than the fair value of its separable net assets, the difference is taken directly to the income statement. Goodwill relating to acquisitions prior to 1 April 2004 is maintained at its net book value on the date of transition to IFRS. From that date goodwill is not amortised but is reviewed at least annually for impairment. Goodwill is reviewed for impairment annually at 31 March by assessing the recoverable amount of cash generating units (or groups of cash generating units) by reference to value-in-use calculations or fair value less cost to dispose if such information exists at the balance sheet date (typically only where the Group is progressed with disposal related activities that allow a fair value less cost to dispose to be readily determinable). Goodwill impairments are not subsequently reversed. On disposal of a subsidiary, joint venture or associate, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible. Acquired intangibles Acquired intangibles are the estimated fair value of customer relationships and brands which are in part contractual, represented by the value of the acquired order book, and in part non-contractual, represented by the risk-adjusted value of future orders expected to arise from the relationships. The carrying value of the contractual element is amortised on a straight-line basis over the remaining period of the orders that are in process or the future period in which the orders will be fulfilled, as the case may be. The amortisation periods, reflecting the lengths of the various contracts, are mainly in the range one year to five years, with a minority of contracts and hence amortisation periods, up to 15 years. The carrying value of the non-contractual element is amortised over the period in which it is estimated that the relationships are likely to bring economic benefit via future orders. Relationships are valued on a contract-by-contract and customer-by-customer basis and the pattern of amortisation reflects the expected pattern of benefit in each case. The amortisation profile is determined on a case-by-case basis and in all cases results in a front-loaded profile, reflecting the greater certainty of future orders in the near term compared with the longer term. The amortisation period is in the range between one year to fifteen years. Acquired brand names are valued dependent on the characteristics of the market in which they operate and the likely value a third party would place on them. Useful lives are likewise dependent on market characteristics of the acquired business brand. These are amortised on a straight-line basis over a period of up to five years. Amortisation charges for the year are recorded in operating costs. Research and development Research expenditure is recognised as an expense as incurred. Costs incurred on development projects are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, when there is an intention to use or sell the asset, the financial and other resources available to complete the asset and only if the cost can be measured reliably. Other development expenditure is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Development costs that have been capitalised are amortised from the date the product is available for use on a straight-line basis over the period of its expected benefit but not exceeding seven years. Amortisation of development costs is expensed within operating costs in the Group income statement. Total research and development costs expensed in the period was \u00a3203.3 million (2025: \u00a3214.7 million). Amounts recognised as an expense are recorded within operating costs. Computer software Computer software, excluding the Group\u2019s Enterprise Resource Planning (ERP) system, includes software licences acquired. Configuration and customisation costs relating to Software-as-a-service agreements are expensed as incurred. Computer software is measured at cost less accumulated amortisation and is amortised on a straight-line basis over its expected useful life of between three and ten years. Amortisation of software costs is expensed within operating costs in the Group income statement. The Group is implementing an ERP system in phases over several years. The ERP system is being amortised over a period of up to 13 years to coincide with the expected support period from the software provider. The core asset commenced amortisation when it was available for use, which occurred once implementation was completed. Additional capitalisation for improved functionality as the platform is tailored and deployed at each respective business unit commences amortisation when those improved functionalities are available for use (when the ERP is implemented at the respective business unit). Impairment Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-601": { "value": "Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible. Impairment Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. Impairment For property, plant and equipment the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level. Where an asset does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-597": { "value": "Impairment Goodwill is reviewed for impairment at least annually. As goodwill does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU, or group of CGUs, to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Subsequent reversal of historic impairments to goodwill are not permissible. Impairment Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. Impairment For property, plant and equipment the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level. Where an asset does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-573": { "value": "Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust as treasury shares. Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue less the weighted average number of shares held by the Employee Share Trust, plus the number of ordinary shares which are considered potentially dilutive ordinary shares in respect of share incentive schemes, should the vesting conditions have been met as at the year end. Details of share incentive schemes are provided in note 23 and note 24. Weighted average is calculated by reference to the date of transactions which increase or reduce the number of shares in issue or the number of shares held by the Employee Share Trust. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-549": { "value": "Results of goodwill impairment test The current year impairment test results have not resulted in an impairment for any of the Group\u2019s cash generating units. The recoverable amount of the Group\u2019s goodwill was assessed by reference to value-in-use calculations. The value-in-use calculations are derived from risk- adjusted cash flows from the Group\u2019s five-year plan. Terminal value assessments are included based on year five and an estimated long- term, country-specific growth rate of 2.0% \u2013 4.7% (2025: 1.9 \u2013 4.7%). The process by which the Group\u2019s budget is prepared, reviewed and approved benefits from historical experience, visibility of long-term work programmes in relation to work undertaken for the UK Government, available government spending information (both UK and overseas), the Group\u2019s contract backlog, bid pipeline and the Group\u2019s tracking pipeline which monitors opportunities prior to release of tenders. The budget process includes consideration of risks and opportunities at contract and business level, and considered matters such as inflation. Furthermore, in preparing this assessment the Group has considered the potential impact of climate change. In particular, the Group have considered the impact of climate change on the useful economic lives of assets, disruption to key operating sites and supply chain, and potential asset impairments. The Group identified climate risks (see page 124 for details) predominantly result in adverse cash outflows to the business and have been modelled as such within our sensitivity analysis. The Group anticipates that a number of these climate risks may result in additional cash inflows as associated climate related costs could be passed onto our customers offsetting the climate risk and a conservative assessment of such cash inflow is also modelled within the sensitivity. These considerations did not have a material impact on the goodwill impairment assessment. ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-525": { "value": "11. Other intangible assets Acquired intangibles Acquired intangibles are the estimated fair value of customer relationships and brands which are in part contractual, represented by the value of the acquired order book, and in part non-contractual, represented by the risk-adjusted value of future orders expected to arise from the relationships. The carrying value of the contractual element is amortised on a straight-line basis over the remaining period of the orders that are in process or the future period in which the orders will be fulfilled, as the case may be. The amortisation periods, reflecting the lengths of the various contracts, are mainly in the range one year to five years, with a minority of contracts and hence amortisation periods, up to 15 years. The carrying value of the non-contractual element is amortised over the period in which it is estimated that the relationships are likely to bring economic benefit via future orders. Relationships are valued on a contract-by-contract and customer-by-customer basis and the pattern of amortisation reflects the expected pattern of benefit in each case. The amortisation profile is determined on a case-by-case basis and in all cases results in a front-loaded profile, reflecting the greater certainty of future orders in the near term compared with the longer term. The amortisation period is in the range between one year to fifteen years. Acquired brand names are valued dependent on the characteristics of the market in which they operate and the likely value a third party would place on them. Useful lives are likewise dependent on market characteristics of the acquired business brand. These are amortised on a straight-line basis over a period of up to five years. Amortisation charges for the year are recorded in operating costs. Research and development Research expenditure is recognised as an expense as incurred. Costs incurred on development projects are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, when there is an intention to use or sell the asset, the financial and other resources available to complete the asset and only if the cost can be measured reliably. Other development expenditure is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Development costs that have been capitalised are amortised from the date the product is available for use on a straight-line basis over the period of its expected benefit but not exceeding seven years. Amortisation of development costs is expensed within operating costs in the Group income statement. Total research and development costs expensed in the period was \u00a3203.3 million (2025: \u00a3214.7 million). Amounts recognised as an expense are recorded within operating costs. Computer software Computer software, excluding the Group\u2019s Enterprise Resource Planning (ERP) system, includes software licences acquired. Configuration and customisation costs relating to Software-as-a-service agreements are expensed as incurred. Computer software is measured at cost less accumulated amortisation and is amortised on a straight-line basis over its expected useful life of between three and ten years. Amortisation of software costs is expensed within operating costs in the Group income statement. The Group is implementing an ERP system in phases over several years. The ERP system is being amortised over a period of up to 13 years to coincide with the expected support period from the software provider. The core asset commenced amortisation when it was available for use, which occurred once implementation was completed. Additional capitalisation for improved functionality as the platform is tailored and deployed at each respective business unit commences amortisation when those improved functionalities are available for use (when the ERP is implemented at the respective business unit). Impairment Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. Internally generated Internally software generated Acquired development development intangibles \u2013 costs and costs and Assets under relationships licences other construction Total \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m Cost At 1 April 2025 \u2013 restated 111.6 184.0 28.9 3.2 327.7 Additions \u2013 \u2013 \u2013 13.5 13.5 Transfers from property, plant and equipment ( note 12) \u2013 5.3 \u2013 \u2013 5.3 Transfers from AUC to in -use assets \u2013 4.9 0.9 (5.8) \u2013 Reclassification \u2013 0.4 (0.4) \u2013 \u2013 Disposals \u2013 (8.9) (2.0) (0.2) (11.1) Exchange adjustments 15.0 0.1 0.1 (0.1) 15.1 At 31 March 2026 126.6 185.8 27.5 10.6 350.5 Accumulated amortisation and impairment At 1 April 202 5 \u2013 restated 69.2 100.6 15.5 \u2013 185.3 Amortisation charge 10.0 15.3 2.4 \u2013 27.7 Transfers from property, plant and equipment (note 12) \u2013 1.7 \u2013 \u2013 1.7 Reclassification \u2013 0.3 (0.3) \u2013 \u2013 Disposals \u2013 (8.9) (2.0) \u2013 (10.9) Exchange adjustments 12.6 0.1 \u2013 \u2013 12.7 At 31 March 2026 91.8 109.1 15.6 \u2013 216.5 Net book value at 31 March 2026 34.8 76.7 11.9 10.6 134.0 Cost At 1 April 2024 \u2013 as previously reported 850.9 124.0 25.6 42.6 1,043.1 Restatement \u2013 see below (579.4) \u2013 \u2013 \u2013 (579.4) At 1 April 2024 \u2013 restated 271.5 124.0 25.6 42.6 463.7 Additions \u2013 2.5 1.3 18.5 22.3 Transfers from property, plant and equipment (note 12) \u2013 2.6 1.8 \u2013 4.4 Transfers from AUC to in-use assets \u2013 56.5 0.1 (56.6) \u2013 Disposal of business (2.9) \u2013 \u2013 \u2013 (2.9) Disposals \u2013 restated (147.5) (4.2) \u2013 \u2013 (151.7) Exchange adjustments (9.5) 2.6 0.1 (1.3) (8.1) At 31 March 2025 111.6 184.0 28.9 3.2 327.7 Accumulated amortisation and impairment At 1 April 2024 \u2013 as previously reported 797.8 85.6 10.9 \u2013 894.3 Restatement \u2013 see below (579.4) \u2013 \u2013 \u2013 (579.4) At 1 April 2024 \u2013 restated 218.4 85.6 10.9 \u2013 314.9 Amortisation charge 8.2 16.6 2.7 \u2013 27.5 Transfers from property, plant and equipment (note 12) \u2013 1.1 1.8 \u2013 2.9 Disposals \u2013 restated (147.5) (4.2) \u2013 \u2013 (151.7) Disposal of business (2.9) \u2013 \u2013 \u2013 (2.9) Exchange adjustments (7.0) 1.5 0.1 \u2013 (5.4) At 31 March 2025 69.2 100.6 15.5 \u2013 185.3 Net book value at 31 March 2025 42.4 83.4 13.4 3.2 142.4 Included in Internally generated software development costs and licences is \u00a373.3 million (2025: \u00a379.1 million) relating to the Group\u2019s ERP system, which is amortised over a period of up to 13 years with 5 years remaining. Included in the acquired intangibles \u2013 relationships balance is \u00a329.6 million (2025: \u00a335.0 million) relating to the acquisition of Naval Ship Management (Australia) Pty Ltd. This is being amortised over a total period of 15 years with 11 years remaining. Following a review of fully amortised acquired intangible assets, we have treated those assets which are fully depreciated as disposals and restated the prior year for consistency. This has no impact on the net book value or income statement in any period. The disposal of \u00a3141.0 million of gross cost and accumulated amortisation has been restated through the year to 31 March 2025 as the associated contract concluded during the period. The remaining \u00a3579.4 million of gross cost and accumulated amortisation has been restated through opening balances as at 1 April 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-590": { "value": "Acquired intangibles Acquired intangibles are the estimated fair value of customer relationships and brands which are in part contractual, represented by the value of the acquired order book, and in part non-contractual, represented by the risk-adjusted value of future orders expected to arise from the relationships. The carrying value of the contractual element is amortised on a straight-line basis over the remaining period of the orders that are in process or the future period in which the orders will be fulfilled, as the case may be. The amortisation periods, reflecting the lengths of the various contracts, are mainly in the range one year to five years, with a minority of contracts and hence amortisation periods, up to 15 years. The carrying value of the non-contractual element is amortised over the period in which it is estimated that the relationships are likely to bring economic benefit via future orders. Relationships are valued on a contract-by-contract and customer-by-customer basis and the pattern of amortisation reflects the expected pattern of benefit in each case. The amortisation profile is determined on a case-by-case basis and in all cases results in a front-loaded profile, reflecting the greater certainty of future orders in the near term compared with the longer term. The amortisation period is in the range between one year to fifteen years. Acquired brand names are valued dependent on the characteristics of the market in which they operate and the likely value a third party would place on them. Useful lives are likewise dependent on market characteristics of the acquired business brand. These are amortised on a straight-line basis over a period of up to five years. Amortisation charges for the year are recorded in operating costs. Research and development Research expenditure is recognised as an expense as incurred. Costs incurred on development projects are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, when there is an intention to use or sell the asset, the financial and other resources available to complete the asset and only if the cost can be measured reliably. Other development expenditure is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Development costs that have been capitalised are amortised from the date the product is available for use on a straight-line basis over the period of its expected benefit but not exceeding seven years. Amortisation of development costs is expensed within operating costs in the Group income statement. Total research and development costs expensed in the period was \u00a3203.3 million (2025: \u00a3214.7 million). Amounts recognised as an expense are recorded within operating costs. Computer software Computer software, excluding the Group\u2019s Enterprise Resource Planning (ERP) system, includes software licences acquired. Configuration and customisation costs relating to Software-as-a-service agreements are expensed as incurred. Computer software is measured at cost less accumulated amortisation and is amortised on a straight-line basis over its expected useful life of between three and ten years. Amortisation of software costs is expensed within operating costs in the Group income statement. The Group is implementing an ERP system in phases over several years. The ERP system is being amortised over a period of up to 13 years to coincide with the expected support period from the software provider. The core asset commenced amortisation when it was available for use, which occurred once implementation was completed. Additional capitalisation for improved functionality as the platform is tailored and deployed at each respective business unit commences amortisation when those improved functionalities are available for use (when the ERP is implemented at the respective business unit). Impairment Indefinite life intangibles are reviewed for impairment at least annually. For all other intangible assets (including acquired intangible assets, capitalised development costs and software assets) the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level unless the asset does not generate cash flows that are separately identifiable from other assets. In such cases, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-598": { "value": "Research and development Research expenditure is recognised as an expense as incurred. Costs incurred on development projects are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, when there is an intention to use or sell the asset, the financial and other resources available to complete the asset and only if the cost can be measured reliably. Other development expenditure is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Development costs that have been capitalised are amortised from the date the product is available for use on a straight-line basis over the period of its expected benefit but not exceeding seven years. Amortisation of development costs is expensed within operating costs in the Group income statement. Total research and development costs expensed in the period was \u00a3203.3 million (2025: \u00a3214.7 million). Amounts recognised as an expense are recorded within operating costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-495": { "value": "12. Property, plant and equipment Property, plant and equipment is shown at cost less subsequent depreciation and impairment, except for land, which is shown at cost less impairment. Cost includes expenditure that is directly attributable to the acquisition of the items after the deduction of trade discounts and rebates. Items of property, plant and equipment are depreciated over their estimated useful lives to any estimated residual value, using the following rates:
Freehold property
2.0% to 8.0%
Leasehold property
Lower of useful economic life or lease term
Plant and equipment
6.6% to 33.3%
Aircraft airframes
2%
Major strategic aircraft spares are classified within property, plant and equipment. Aircraft assets, including spares, are disaggregated into separate components where the components have differing useful lives with the value of each rotable component being measured at the cost of replacement or overhaul of the component and the remaining value of the asset being attributed to the airframe component. Depreciation is provided on a straight-line basis, or in the case of certain aircraft components on an hours flown basis, to write off the cost of PPE over the estimated useful lives to their estimated residual value (reassessed at each financial year end). Subsequent expenditure on the replacement or overhaul of aircraft components is capitalised with the carrying value of the part replaced being written off. Subsequent expenditure on maintenance which enhances the performance of aircraft airframes is capitalised whilst expenditure on replacing elements of aircraft airframes is expensed. Components of owned aircraft which are maintained under Power- by-the-hour maintenance arrangements are not depreciated with the associated payments to the maintenance provider instead being expensed as incurred, as the residual value of the asset is deemed to be equivalent to the cost of the asset. Any additional payments made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income at the time at which they are incurred or received. The useful economic life of aircraft is based on management\u2019s estimate of how long the aircraft will continue to be operated in the same manner or a similar manner, typically not exceeding 30 years. Where the Group acquires aircraft which have already been used, and may already exceed the typical useful economic life, an individual assessment of useful economic life is performed. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets include both internally generated intangible assets and property, plant and equipment. To the extent that variable rate borrowings are used to finance a qualifying asset and are hedged in an effective cash flow hedge of interest rate risk, the effective portion of the derivative is recognised in Other Comprehensive Income and reclassified to the Income Statement when the qualifying asset impacts profit or loss. To the extent that fixed rate borrowings are used to finance a qualifying asset and are hedged in an effective fair value hedge of interest rate risk, the capitalised borrowing costs reflect the hedged interest rate. For the year ended 31 March 2026, the average capitalisation rate of borrowing costs was 3.9% (2025: 4.0%). All other borrowing costs are recognised in the Income Statement in the period in which they are incurred. Impairment For property, plant and equipment the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level. Where an asset does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years.
Assets in
Freehold Leasehold Plant and Aircraft course of
property property equipment fleet construction Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cost
At 1 April 2025
225.2
34.3
602.4
112.3
128.7
1,102.9
Additions
14.1
0.6
8.1
21.8
110.8
155.4
Transfers to other intangible assets (note 11)
\u2013
\u2013
(0.4)
\u2013
\u2013
(0.4)
Reclassification from AUC to in-use assets
1.6
\u2013
72.6
8.5
(82.7)
\u2013
Reclassification cost/depreciation
(0.4)
\u2013
2.8
\u2013
\u2013
2.4
Reclassification between categories
(0.8)
(16.4)
17.1
0.1
\u2013
\u2013
Disposals
(7.6)
(7.3)
(79.7)
(27.8)
(27.0)
(149.4)
Capitalised borrowing costs
\u2013
\u2013
\u2013
\u2013
3.7
3.7
Exchange adjustments
0.3
0.2
3.7
3.3
1.4
8.9
At 31 March 2026
232.4
11.4
626.6
118.2
134.9
1,123.5
Accumulated depreciation
At 1 April 2025
90.3
15.1
398.6
33.7
6.3
544.0
Depreciation charge for the year
9.8
0.9
49.6
5.7
\u2013
66.0
Impairment charge for the year
\u2013
\u2013
3.3
0.1
\u2013
3.4
Impairment reversals in the year
\u2013
\u2013
\u2013
\u2013
(1.9)
(1.9)
Transfers to other intangible
assets (note 11)
\u2013
\u2013
3.2
\u2013
\u2013
3.2
Reclassification between categories
(0.7)
(1.1)
1.8
\u2013
\u2013
\u2013
Reclassification cost/depreciation
(0.4)
\u2013
2.8
\u2013
\u2013
2.4
Disposals
(7.3)
(7.3)
(78.8)
(5.1)
\u2013
(98.5)
Exchange adjustments
0.1
0.2
1.9
1.4
\u2013
3.6
At 31 March 2026
91.8
7.8
382.4
35.8
4.4
522.2
Net book value at 31 March 2026
140.6
3.6
244.2
82.4
130.5
601.3
Cost
At 1 April 2024
220.9
15.4
572.6
87.4
124.1
1,020.4
Additions
2.3
1.0
11.8
17.8
72.1
105.0
Transfers to other intangible assets (note 11)
\u2013
\u2013
(4.4)
\u2013
\u2013
(4.4)
Transfers from right of use assets (note 13)
\u2013
\u2013
5.0
\u2013
0.5
5.5
Reclassification from AUC to in-use assets
2.5
18.6
36.2
13.5
(70.8)
\u2013
Disposals
(0.4)
(0.7)
(13.3)
(3.6)
(1.7)
(19.7)
Disposal of business
\u2013
\u2013
(3.6)
\u2013
\u2013
(3.6)
Capitalised borrowing costs
\u2013
\u2013
\u2013
\u2013
5.0
5.0
Exchange adjustments
(0.1)
\u2013
(1.9)
(2.8)
(0.5)
(5.3)
At 31 March 2025
225.2
34.3
602.4
112.3
128.7
1,102.9
Accumulated depreciation
At 1 April 2024
79.8
13.0
378.8
25.4
6.3
503.3
Depreciation charge for the year
13.7
2.9
37.8
4.6
\u2013
59.0
Transfers to other intangible assets (note 11)
\u2013
\u2013
(2.9)
\u2013
\u2013
(2.9)
Transfers from right of use assets (note 13)
\u2013
\u2013
5.0
\u2013
\u2013
5.0
Reclassification between categories
(3.4)
\u2013
(4.3)
7.7
\u2013
\u2013
Disposal of business
\u2013
\u2013
(3.6)
\u2013
\u2013
(3.6)
Disposals
\u2013
(0.7)
(11.0)
(2.6)
\u2013
(14.3)
Exchange adjustments
0.2
(0.1)
(1.2)
(1.4)
\u2013
(2.5)
At 31 March 2025
90.3
15.1
398.6
33.7
6.3
544.0
Net book value at 31 March 2025
134.9
19.2
203.8
78.6
122.4
558.9
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-575": { "value": "Property, plant and equipment is shown at cost less subsequent depreciation and impairment, except for land, which is shown at cost less impairment. Cost includes expenditure that is directly attributable to the acquisition of the items after the deduction of trade discounts and rebates. Items of property, plant and equipment are depreciated over their estimated useful lives to any estimated residual value, using the following rates:
Freehold property
2.0% to 8.0%
Leasehold property
Lower of useful economic life or lease term
Plant and equipment
6.6% to 33.3%
Aircraft airframes
2%
Major strategic aircraft spares are classified within property, plant and equipment. Aircraft assets, including spares, are disaggregated into separate components where the components have differing useful lives with the value of each rotable component being measured at the cost of replacement or overhaul of the component and the remaining value of the asset being attributed to the airframe component. Depreciation is provided on a straight-line basis, or in the case of certain aircraft components on an hours flown basis, to write off the cost of PPE over the estimated useful lives to their estimated residual value (reassessed at each financial year end). Subsequent expenditure on the replacement or overhaul of aircraft components is capitalised with the carrying value of the part replaced being written off. Subsequent expenditure on maintenance which enhances the performance of aircraft airframes is capitalised whilst expenditure on replacing elements of aircraft airframes is expensed. Components of owned aircraft which are maintained under Power- by-the-hour maintenance arrangements are not depreciated with the associated payments to the maintenance provider instead being expensed as incurred, as the residual value of the asset is deemed to be equivalent to the cost of the asset. Any additional payments made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income at the time at which they are incurred or received. The useful economic life of aircraft is based on management\u2019s estimate of how long the aircraft will continue to be operated in the same manner or a similar manner, typically not exceeding 30 years. Where the Group acquires aircraft which have already been used, and may already exceed the typical useful economic life, an individual assessment of useful economic life is performed. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets include both internally generated intangible assets and property, plant and equipment. To the extent that variable rate borrowings are used to finance a qualifying asset and are hedged in an effective cash flow hedge of interest rate risk, the effective portion of the derivative is recognised in Other Comprehensive Income and reclassified to the Income Statement when the qualifying asset impacts profit or loss. To the extent that fixed rate borrowings are used to finance a qualifying asset and are hedged in an effective fair value hedge of interest rate risk, the capitalised borrowing costs reflect the hedged interest rate. For the year ended 31 March 2026, the average capitalisation rate of borrowing costs was 3.9% (2025: 4.0%). All other borrowing costs are recognised in the Income Statement in the period in which they are incurred. Impairment For property, plant and equipment the Group performs impairment testing where indicators of impairment are identified. Impairment testing is performed at the individual asset level. Where an asset does not generate cash flows that are separately identifiable from other assets, the Group estimates the recoverable amount of the CGU to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal, and value-in-use. When the recoverable amount is less than the carrying amount, an impairment loss is recognised immediately in the Group income statement. Where an impairment loss on other non-financial non-current assets subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised in prior years. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-591": { "value": "Items of property, plant and equipment are depreciated over their estimated useful lives to any estimated residual value, using the following rates:
Freehold property
2.0% to 8.0%
Leasehold property
Lower of useful economic life or lease term
Plant and equipment
6.6% to 33.3%
Aircraft airframes
2%
Major strategic aircraft spares are classified within property, plant and equipment. Aircraft assets, including spares, are disaggregated into separate components where the components have differing useful lives with the value of each rotable component being measured at the cost of replacement or overhaul of the component and the remaining value of the asset being attributed to the airframe component. Depreciation is provided on a straight-line basis, or in the case of certain aircraft components on an hours flown basis, to write off the cost of PPE over the estimated useful lives to their estimated residual value (reassessed at each financial year end). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-592": { "value": "Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets include both internally generated intangible assets and property, plant and equipment. To the extent that variable rate borrowings are used to finance a qualifying asset and are hedged in an effective cash flow hedge of interest rate risk, the effective portion of the derivative is recognised in Other Comprehensive Income and reclassified to the Income Statement when the qualifying asset impacts profit or loss. To the extent that fixed rate borrowings are used to finance a qualifying asset and are hedged in an effective fair value hedge of interest rate risk, the capitalised borrowing costs reflect the hedged interest rate. For the year ended 31 March 2026, the average capitalisation rate of borrowing costs was 3.9% (2025: 4.0%). All other borrowing costs are recognised in the Income Statement in the period in which they are incurred. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-496": { "value": "13. Leases Group as a lessee Leases represent rentals payable by the Group for certain operational, distribution and office properties and other assets such as aircraft. The leases have varying terms, purchase options, escalation clauses and renewal rights. Right of use assets
Leasehold
Plant and
Aircraft
property equipment fleet Total
\u00a3m \u00a3m \u00a3m \u00a3m
Cost
At 1 April 2025
138.5
69.4
215.2
423.1
Additions
31.1
21.9
28.0
81.0
Disposals
(35.1)
(10.2)
(2.9)
(48.2)
Exchange adjustments
2.4
0.1
11.5
14.0
At 31 March 2026
136.9
81.2
251.8
469.9
Accumulated depreciation
At 1 April 2025
58.5
45.8
90.0
194.3
Depreciation charge for the year
16.6
10.4
19.2
46.2
Impairment charge for the year
4.2
\u2013
\u2013
4.2
Disposals
(19.9)
(8.1)
(2.7)
(30.7)
Exchange adjustments
1.0
0.1
6.3
7.4
At 31 March 2026
60.4
48.2
112.8
221.4
Net book value at 31 March 2026
76.5
33.0
139.0
248.5
For all leases in which the Group is a lessee (other than those meeting the criteria detailed below), the Group recognises a right of use asset and corresponding lease liability at commencement of the lease. The lease liability is the present value of future lease payments discounted at the rate implicit in the lease, if available, or the applicable incremental borrowing rate. The incremental borrowing rate is determined at lease inception based on a number of factors including asset type, lease currency and lease term. Lease payments include fixed payments and variable lease payments dependent on an index or rate, initially measured using the index or rate at the commencement date. The lease term reflects any extension or termination options that the Group is reasonably certain to exercise. The lease liability is subsequently measured at amortised cost using the effective interest rate method, with interest on the lease liability being recognised as a finance expense in the income statement. The lease liability is remeasured, with a corresponding adjustment to the right of use asset, if there is a change in future lease payments, for example resulting from a rent review, change in a rate/index or change in the Group\u2019s assessment of whether it is reasonably certain to exercise an extension, termination or purchase option. The right of use asset is initially recorded at cost, being equal to the lease liability, adjusted for any initial direct costs, lease payments made prior to commencement date, lease incentives received and any dilapidation costs. Depreciation of right of use assets is recognised as an expense in the income statement on a straight-line basis over the shorter of the asset\u2019s useful life or expected term of the lease. Right of use assets arising from sale and leaseback transactions are measured at the proportion of the previous carrying amount of the asset that relates to the right of use retained by the Group. Gains arising on sale and leaseback transactions are recognised to the extent that they relate to the rights transferred to the buyer-lessor whilst losses arising on sale and leaseback transactions are recognised in full. Right of use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, with the impairment expense being recognised in the income statement. Where a lease is terminated early, any termination fees or gain or loss relating to the release of right of use asset and lease obligation are recognised as a gain or loss through the income statement. Payments in respect of short-term leases not exceeding 12 months in duration or low-value leases are expensed on a straight-line basis to the income statement as permitted by IFRS 16, \u2018Leases\u2019.
Leasehold Plant and Aircraft
property equipment fleet Total
\u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2024
140.1
74.1
153.1
367.3
Additions
12.3
9.5
75.8
97.6
Transfers to property, plant & equipment (note 12)
\u2013
(5.5)
\u2013
(5.5)
Disposals
(9.7)
(8.4)
(4.1)
(22.2)
Disposal of business
(2.0)
\u2013
\u2013
(2.0)
Exchange adjustments
(2.2)
(0.3)
(9.6)
(12.1)
At 31 March 202
5
138.5
69.4
215.2
423.1
Accumulated depreciation
At 1 April 2024
53.9
49.3
88.5
191.7
Depreciation charge for the year
13.0
8.9
9.3
31.2
Impairment charge for the year
1.7
0.1
\u2013
1.8
Transfers to property, plant & equipment (note 12)
\u2013
(5.0)
\u2013
(5.0)
Disposals
(8.3)
(7.4)
(3.4)
(19.1)
Disposal of business
(0.8)
\u2013
\u2013
(0.8)
Exchange adjustments
(1.0)
(0.1)
(4.4)
(5.5)
At 31 March 2025
58.5
45.8
90.0
194.3
Net book value at 31 March 2025
80.0
23.6
125.2
228.8
Lease liabilities
The following tables show the discounted Group lease liabilities and a reconciliation of opening to closing lease liabilities:
Total
\u00a3m
At 1 April 2025
274.6
Additions
78.5
Disposals
(5.4)
Exchange adjustments
4.1
Lease interest
17.1
Lease repayments
(61.6)
At 31 March 2026
307.3
Non-current lease liabilities
254.2
Current lease liabilities
53.1
At 31 March 2026
307.3
At 1 April 2024
230.5
Additions
99.2
Disposals
(3.0)
Disposal of business
(1.1)
Exchange adjustments
(5.6)
Lease interest
14.1
Lease repayments
(59.5)
At 31 March 2025
274.6
Non-current lease liabilities
227.4
Current lease liabilities
47.2
At 31 March 2025
274.6
See note 22 for a maturity analysis of the contractual undiscounted lease payments. Amounts recognised in the Group income statement
2026
2025
\u00a3m \u00a3m
Interest on lease liabilities
17.1
14.1
Right-of-use asset depreciation
46.2
31.2
Right-of-use asset impairment
4.2
1.8
(Gain)/loss on disposal of right-of-use assets
(4.1)
0.1
The total expense for short term and low value leases was \u00a344.2 million (2025: \u00a339.6 million). The expense is deemed approximate to the cash outflow for short term and low value leases. Amounts recognised in the Group cash flow statement
2026
2025
\u00a3m \u00a3m
Total cash outflow for principal element of leases
44.5
45.4
Total cash outflow for interest element of leases
17.1
14.1
Total cash outflow for leases
61.6
59.5
Group as a lessor The Group is the lessor in an arrangement for the lease of vehicles and sub-lease of leased properties. There has been one new significant lease arrangement as a lessor in the current year (2025: none) resulting in an additional \u00a315.4 million of lease receivables in respect of this arrangement as at 31 March 2026. Amounts recognised in the Group income statement
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Finance lease \u2013 interest income
5.3
5.0
Finance lease payments receivable
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Within one year
16.6
18.8
Greater than one year but less than two years
12.6
18.7
Greater than two years but less than three years
7.3
9.2
Greater than three years but less than four years
5.3
2.9
Greater than four years but less than five years
2.4
0.2
Greater than five years
12.6
\u2013
Total undiscounted finance lease payments receivable
56.8
49.8
Impact of discounting
(10.9)
(5.2)
Finance lease receivable (net investment in the lease)
45.9
44.6
There was no material impairment of lease receivables in the year ended 31 March 2026 (2025: \u00a3nil). As a lessor, the Group classifies lessor arrangements as finance or operating leases. Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Amounts due from lessees under a finance lease are held on the statement of financial position as a financial asset at an amount equal to the Group\u2019s net investment in the lease. The finance lease payments received are treated as finance income and a repayment of principal including initial direct costs. Finance income is allocated over the lease term, with the gross receivable being reviewed for impairment on a regular basis.", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-526": { "value": "
Right of use assets
Leasehold
Plant and
Aircraft
property equipment fleet Total
\u00a3m \u00a3m \u00a3m \u00a3m
Cost
At 1 April 2025
138.5
69.4
215.2
423.1
Additions
31.1
21.9
28.0
81.0
Disposals
(35.1)
(10.2)
(2.9)
(48.2)
Exchange adjustments
2.4
0.1
11.5
14.0
At 31 March 2026
136.9
81.2
251.8
469.9
Accumulated depreciation
At 1 April 2025
58.5
45.8
90.0
194.3
Depreciation charge for the year
16.6
10.4
19.2
46.2
Impairment charge for the year
4.2
\u2013
\u2013
4.2
Disposals
(19.9)
(8.1)
(2.7)
(30.7)
Exchange adjustments
1.0
0.1
6.3
7.4
At 31 March 2026
60.4
48.2
112.8
221.4
Net book value at 31 March 2026
76.5
33.0
139.0
248.5
Leasehold Plant and Aircraft
property equipment fleet Total
\u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2024
140.1
74.1
153.1
367.3
Additions
12.3
9.5
75.8
97.6
Transfers to property, plant & equipment (note 12)
\u2013
(5.5)
\u2013
(5.5)
Disposals
(9.7)
(8.4)
(4.1)
(22.2)
Disposal of business
(2.0)
\u2013
\u2013
(2.0)
Exchange adjustments
(2.2)
(0.3)
(9.6)
(12.1)
At 31 March 202
5
138.5
69.4
215.2
423.1
Accumulated depreciation
At 1 April 2024
53.9
49.3
88.5
191.7
Depreciation charge for the year
13.0
8.9
9.3
31.2
Impairment charge for the year
1.7
0.1
\u2013
1.8
Transfers to property, plant & equipment (note 12)
\u2013
(5.0)
\u2013
(5.0)
Disposals
(8.3)
(7.4)
(3.4)
(19.1)
Disposal of business
(0.8)
\u2013
\u2013
(0.8)
Exchange adjustments
(1.0)
(0.1)
(4.4)
(5.5)
At 31 March 2025
58.5
45.8
90.0
194.3
Net book value at 31 March 2025
80.0
23.6
125.2
228.8
", "dimensions": { "concept": "ifrs-full:DisclosureOfQuantitativeInformationAboutRightofuseAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-576": { "value": "For all leases in which the Group is a lessee (other than those meeting the criteria detailed below), the Group recognises a right of use asset and corresponding lease liability at commencement of the lease. The lease liability is the present value of future lease payments discounted at the rate implicit in the lease, if available, or the applicable incremental borrowing rate. The incremental borrowing rate is determined at lease inception based on a number of factors including asset type, lease currency and lease term. Lease payments include fixed payments and variable lease payments dependent on an index or rate, initially measured using the index or rate at the commencement date. The lease term reflects any extension or termination options that the Group is reasonably certain to exercise. The lease liability is subsequently measured at amortised cost using the effective interest rate method, with interest on the lease liability being recognised as a finance expense in the income statement. The lease liability is remeasured, with a corresponding adjustment to the right of use asset, if there is a change in future lease payments, for example resulting from a rent review, change in a rate/index or change in the Group\u2019s assessment of whether it is reasonably certain to exercise an extension, termination or purchase option. The right of use asset is initially recorded at cost, being equal to the lease liability, adjusted for any initial direct costs, lease payments made prior to commencement date, lease incentives received and any dilapidation costs. Depreciation of right of use assets is recognised as an expense in the income statement on a straight-line basis over the shorter of the asset\u2019s useful life or expected term of the lease. Right of use assets arising from sale and leaseback transactions are measured at the proportion of the previous carrying amount of the asset that relates to the right of use retained by the Group. Gains arising on sale and leaseback transactions are recognised to the extent that they relate to the rights transferred to the buyer-lessor whilst losses arising on sale and leaseback transactions are recognised in full. Right of use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, with the impairment expense being recognised in the income statement. Where a lease is terminated early, any termination fees or gain or loss relating to the release of right of use asset and lease obligation are recognised as a gain or loss through the income statement. Payments in respect of short-term leases not exceeding 12 months in duration or low-value leases are expensed on a straight-line basis to the income statement as permitted by IFRS 16, \u2018Leases\u2019. As a lessor, the Group classifies lessor arrangements as finance or operating leases. Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Amounts due from lessees under a finance lease are held on the statement of financial position as a financial asset at an amount equal to the Group\u2019s net investment in the lease. The finance lease payments received are treated as finance income and a repayment of principal including initial direct costs. Finance income is allocated over the lease term, with the gross receivable being reviewed for impairment on a regular basis.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-562": { "value": "
14. Investment in and loans to joint ventures and associates
The Group\u2019s material joint ventures and associates are:
Nature of % interest % interest Country of Principal area
relationship
Year end
Business activity
held (2026) held (2025) incorporation of operation
AirTanker Services Limited
Associate
31 Dec
Provision of
23.5%
23.5%
United
United
air-to-air refuelling
Kingdom
Kingdom
Ascent Flight Training
Joint venture
31 Mar
Provision of
50.0%
50.0%
United
United
(Holdings) Limited
training services
Kingdom
Kingdom
Summarised financial information for joint ventures and associates
The summarised financial information below reflects the amounts presented in the financial statements of the relevant joint ventures and
associates, and not the Group\u2019s share of those amounts. These amounts have been adjusted to conform to the Group\u2019s accounting policies
where required. The summarised financial information has been aggregated to provide useful information to users without excessive detail.
Joint ventures that are not considered material to the Group are not shown below.
31 March 2026
31 March 2025
Ascent Flight
Ascent Flight
Training AirTanker Training AirTanker
(Holdings) Services (Holdings) Services
Summarised income statement extract (year ended)
Limited Limited Limited Limited
Revenue
176.8
275.2
165.3
239.6
Depreciation and amortisation
(0.4)
(2.2)
(0.6)
(3.3)
Interest income
3.2
3.9
3.7
3.7
Interest expense
(2.0)
(0.1)
(2.3)
(0.2)
Income tax expense
(6.6)
(2.7)
(5.9)
(1.8)
Profit/(loss) from continuing operations
20.2
0.4
(2.6)
1.0
Other comprehensive income
\u2013
\u2013
(3.2)
\u2013
Total comprehensive income
20.2
0.4
(5.8)
1.0
Summarised statement of financial position
Non-current assets
16.5
52.9
48.5
75.7
Current assets (excluding cash and cash equivalents)
55.8
72.7
25.0
65.4
Cash and cash equivalents
61.9
114.3
57.3
111.8
Non-current liabilities
(97.1)
(53.2)
(91.6)
(55.0)
Current liabilities
(9.8)
(86.7)
(12.6)
(79.3)
Net assets
27.3
100.0
26.6
118.6
Ownership
50%
23.5%
50%
23.5%
Carrying value of investment
13.7
23.5
13.3
27.9
The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at
cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on
acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an
impairment in value has occurred as a result of one or more events during the period, the investment is impaired.
The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement,
and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are
adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its
investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so.
Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the
Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment.
Reconciliation to carrying amounts
Investment in joint ventures
Loans to joint ventures
and associates and associates Total
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April
43.5
59.7
3.6
3.9
47.1
63.6
Results from joint ventures and associates
7.4
(2.7)
\u2013
\u2013
7.4
(2.7)
Acquisition and disposal of joint ventures and
associates (note 27)
\u2013
0.4
\u2013
\u2013
\u2013
0.4
Loans repaid by joint ventures and associates
\u2013
\u2013
(0.2)
(0.3)
(0.2)
(0.3)
Interest accrued and capitalised
\u2013
\u2013
0.2
0.2
0.2
0.2
Interest received
\u2013
\u2013
(0.3)
(0.2)
(0.3)
(0.2)
Dividends received
(11.1)
(12.2)
\u2013
\u2013
(11.1)
(12.2)
Fair value adjustment of derivatives
\u2013
(2.2)
\u2013
\u2013
\u2013
(2.2)
Tax on fair value adjustment of derivatives
\u2013
0.5
\u2013
\u2013
\u2013
0.5
Foreign exchange
0.5
\u2013
\u2013
\u2013
0.5
\u2013
At 31 March
40.3
43.5
3.3
3.6
43.6
47.1
The total investments in joint ventures and associates and loans to joint ventures and associates is attributable to the following reportable segments:
2026
2025
\u00a3m \u00a3m
Marine
4.7
3.2
Nuclear
0.1
0.9
Land
0.2
0.2
Aviation
38.6
42.8
Net book value
43.6
47.1
The joint ventures and associates have no significant contingent liabilities to which the Group is exposed. The Group does not have any commitments that have been made to the joint ventures or associates and not recognised at the reporting date. Joint arrangements are classified as joint ventures where the Group has the right to net assets of the joint arrangement rather than separate rights and obligations to the assets and liabilities of the joint arrangement, respectively. There has been no impairment to loans to joint ventures and associates during the year (2025: \u00a3nil). Total cumulative expected credit losses in respect of loans to joint ventures and associates are also \u00a3nil (2025: \u00a3nil) as the joint ventures and associates are considered to have low credit risk and as such impairment risk is considered minimal. There are no significant restrictions on the ability of joint ventures and associates to transfer funds to the owners, other than those imposed by the Companies Act 2006 or equivalent local regulations. Joint ventures and associates (equity accounted): AirTanker Services Limited (23.5%) 12 AirTanker Hub RAF Brize Norton, Carterton, Oxfordshire, England, OX18 3LX, United Kingdom Alert Communications Group Holdings Limited (20%) Alkali Metal Processing Limited (50.0%) Ascent Flight Training (Holdings) Limited (50.0%) Cavendish Boccard Nuclear Limited (51.0%) Cavendish Dounreay Partnership Limited (50.0%) 9 Cavendish Fluor Partnership Limited (65.0%) Debut Services (South West) Limited (50.0%) 5 Merchant Square, Level 9 London,England, W2 1BQ, United Kingdom Duqm Naval Dockyard SAOC (49.0%) The Special Economic Zone at Duqm, Al -Duqm, Al-Wusta\u2019a, 3972 112, Oman FSP (2004) Limited (50.0%)1 8 Stephenson Place, Hamilton International Technology Park, Blantyre, G72 0LH, Scotland H&B Defence Pty Ltd (49%) Unit G3, 55 Blackall Street, Barton ACT 2600, Australia Okeanus Vermogensverwaltungs GmbH & Co. KG (50.0%) Vorsetzen 54, 20459, Hamburg, Germany Joint ventures and associates in Members Voluntary Liquidation / Dissolution: ABC Electrification Ltd (33.3%)9 Alstom, Litchurch Lane, Derby, England DE24 8AD Airwork Technical Services & Partners LLC (51.0%) PO Box 248 (Muaskar Al Murtafa\u2019a (MAM) Garrison), Muscat, 100, Sultanate of Oman Babcock MCS Ghana Limited (90.0%) No. 9, Carrot Avenue, Adjacent Lizzy Sport Complex, East Legon, Accra, Ghana Notes * Dormant entity. 1. Holding of two types of ordinary shares. 2. Holding of three types of ordinary shares. 3. Holding of four types of ordinary shares. 4. Holding of six types of ordinary shares. 5. Holding of ordinary and preference shares. 6. Holding of ordinary and deferred shares. 7. Holding of ordinary and redeemable preference shares. 8. Holding of ordinary and five types of preference shares. 9. Holding of one type of ordinary share only, where more than one type of share is authorised or in issue. 10. Holding of two types of ordinary shares, where more than two types of share are authorised or in issue. 11. Holding of one type of ordinary share and one type of preference share, where more than two types of share are authorised or in issue. 12. Year end 31 December.", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-497": { "value": "14. Investment in and loans to joint ventures and associates The Group\u2019s material joint ventures and associates are:
Nature of % interest % interest Country of Principal area
relationship
Year end
Business activity
held (2026) held (2025) incorporation of operation
AirTanker Services Limited
Associate
31 Dec
Provision of
23.5%
23.5%
United
United
air-to-air refuelling
Kingdom
Kingdom
Ascent Flight Training
Joint venture
31 Mar
Provision of
50.0%
50.0%
United
United
(Holdings) Limited
training services
Kingdom
Kingdom
Summarised financial information for joint ventures and associates The summarised financial information below reflects the amounts presented in the financial statements of the relevant joint ventures and associates, and not the Group\u2019s share of those amounts. These amounts have been adjusted to conform to the Group\u2019s accounting policies where required. The summarised financial information has been aggregated to provide useful information to users without excessive detail. Joint ventures that are not considered material to the Group are not shown below.
31 March 2026
31 March 2025
Ascent Flight
Ascent Flight
Training AirTanker Training AirTanker
(Holdings) Services (Holdings) Services
Summarised income statement extract (year ended)
Limited Limited Limited Limited
Revenue
176.8
275.2
165.3
239.6
Depreciation and amortisation
(0.4)
(2.2)
(0.6)
(3.3)
Interest income
3.2
3.9
3.7
3.7
Interest expense
(2.0)
(0.1)
(2.3)
(0.2)
Income tax expense
(6.6)
(2.7)
(5.9)
(1.8)
Profit/(loss) from continuing operations
20.2
0.4
(2.6)
1.0
Other comprehensive income
\u2013
\u2013
(3.2)
\u2013
Total comprehensive income
20.2
0.4
(5.8)
1.0
Summarised statement of financial position
Non-current assets
16.5
52.9
48.5
75.7
Current assets (excluding cash and cash equivalents)
55.8
72.7
25.0
65.4
Cash and cash equivalents
61.9
114.3
57.3
111.8
Non-current liabilities
(97.1)
(53.2)
(91.6)
(55.0)
Current liabilities
(9.8)
(86.7)
(12.6)
(79.3)
Net assets
27.3
100.0
26.6
118.6
Ownership
50%
23.5%
50%
23.5%
Carrying value of investment
13.7
23.5
13.3
27.9
The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment.
Reconciliation to carrying amounts
Investment in joint ventures
Loans to joint ventures
and associates and associates Total
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April
43.5
59.7
3.6
3.9
47.1
63.6
Results from joint ventures and associates
7.4
(2.7)
\u2013
\u2013
7.4
(2.7)
Acquisition and disposal of joint ventures and
associates (note 27)
\u2013
0.4
\u2013
\u2013
\u2013
0.4
Loans repaid by joint ventures and associates
\u2013
\u2013
(0.2)
(0.3)
(0.2)
(0.3)
Interest accrued and capitalised
\u2013
\u2013
0.2
0.2
0.2
0.2
Interest received
\u2013
\u2013
(0.3)
(0.2)
(0.3)
(0.2)
Dividends received
(11.1)
(12.2)
\u2013
\u2013
(11.1)
(12.2)
Fair value adjustment of derivatives
\u2013
(2.2)
\u2013
\u2013
\u2013
(2.2)
Tax on fair value adjustment of derivatives
\u2013
0.5
\u2013
\u2013
\u2013
0.5
Foreign exchange
0.5
\u2013
\u2013
\u2013
0.5
\u2013
At 31 March
40.3
43.5
3.3
3.6
43.6
47.1
The total investments in joint ventures and associates and loans to joint ventures and associates is attributable to the following
reportable segments:
2026
2025
\u00a3m \u00a3m
Marine
4.7
3.2
Nuclear
0.1
0.9
Land
0.2
0.2
Aviation
38.6
42.8
Net book value
43.6
47.1
The joint ventures and associates have no significant contingent liabilities to which the Group is exposed. The Group does not have any
commitments that have been made to the joint ventures or associates and not recognised at the reporting date.
Joint arrangements are classified as joint ventures where the Group has the right to net assets of the joint arrangement rather than separate
rights and obligations to the assets and liabilities of the joint arrangement, respectively. There has been no impairment to loans to joint
ventures and associates during the year (2025: \u00a3nil). Total cumulative expected credit losses in respect of loans to joint ventures and
associates are also \u00a3nil (2025: \u00a3nil) as the joint ventures and associates are considered to have low credit risk and as such impairment
risk is considered minimal.
There are no significant restrictions on the ability of joint ventures and associates to transfer funds to the owners, other than those imposed
by the Companies Act 2006 or equivalent local regulations.
33. Group entities
In accordance with Section 409 of the Companies Act 2006, a full list of subsidiaries and equity accounted investments as at 31 March 2026
is disclosed below. Unless otherwise stated, the Group\u2019s interest in the voting share capital is represented by one type of ordinary share and
is 100%, the entities are unlisted, the year end is 31 March and the address of the registered office is 33 Wigmore Street, London, W1U 1QX.
Babcock (UK) Holdings Limited is the only entity held directly by Babcock International Group PLC. No subsidiary undertakings have been
excluded from the consolidation.
Subsidiaries, wholly owned
Airwork Limited
Appledore Shipbuilders (2004) Limited
1
Armstrong Technology Associates Limited*
Babcock (NZ) Limited
Babcock Central Office, HMNZ
Dockyard, Devonport Naval Base, Queens
Parade, Devonport, Auckland, 0744, New
Zealand
Babcock (UK) Holdings Limited
3
Babcock Aerospace Limited
Babcock Africa Investments (Pty) Ltd
Riley Road Office Park, 15E Riley Road,
Bedfordview, Gauteng, 2007, South Africa
Babcock Airports Limited
Babcock Australia Holdings Pty Ltd
Level 9, 70 Franklin Street, Adelaide SA 5000,
Australia
Babcock Aviation Services Holdings
International Limited
12
Trident Park, Notabile Gardens, No. 2
\u2013 Level 3,
Mdina Road, Zone 2, Central Business District,
Birkirkara CBD 2010, Malta
Babcock Aviation Services (Holdings)
Limited
,1
Babcock B.V.
Bezuidenhoutseweg 1, 2594 AB The Hague,
The Netherlands
Babcock Canada Inc.
99 Bank St., Suite 500, Ottawa ON K1P 6B9,
Canada
Babcock Communications Cyprus Limited
Nikiforou Foka 36, Limassol 3040, Cyprus
Babcock Communications Limited
Babcock Company Holdings Limited
Babcock Contractors Limited
Babcock Corporate Secretaries Limited*
Babcock Corporate Services Limited
Babcock Critical Assets Holdings LLP
Babcock Critical Services Limited
103 Waterloo
Street, Glasgow, Scotland,
G2 7BW, United Kingdom
Babcock Defence & Security Holdings LLP
Babcock Defence and Security Investments
Limited
Babcock Defense (USA) Incorporated
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Babcock Defence Systems Limited
Babcock Design & Technology Limited
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
Babcock Education & Training Holdings LLP
Babcock Education Holdings Limited
Babcock Engineering Limited*
Babcock Fire Services (SW) Limited
Babcock Fire Services Limited
Babcock Fire Training (Avonmouth) Limited
Babcock Group (US Investments) Limited
Babcock Holdings (USA) Incorporated
7
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Babcock Holdings Limited
3
Babcock Information Analytics and Security
Holdings Limited*
Babcock Information Analytics and Security
Limited
5
Babcock Integrated Technology (Korea)
Limited
Babcock Integrated Technology GmbH
Am Zoppenberg 23, 41366 Schwalmtal,
Germany
Babcock Integrated Technology Limited
Babcock Integration LLP
Babcock International Belgium SRL
11 rue de colonies, Brussels, Belgium, 1000
Babcock International Estonia OU
Harju maakond,, Tallinn, Kesklinna linnaosa,
P\u00e4rnu mnt 139e/2-8, 11317, Estonia
Babcock International France Aviation
SAS
Lieu dit le Portaret, 83340, Le Cannet
-des-
Maures, France
Babcock International France SAS
21 Rue Leblanc 75015, Paris, France
Babcock International France Terre SAS
21 Rue Leblanc 75015, Paris, France
Babcock International Holdings BV
Bezuidenhoutseweg 1, 2594 AB The Hague,
The Netherlands
Babcock International Holdings Limited
1
Trident Park, Notabile Gardens, No. 2
\u2013 Level 3,
Mdina Road, Zone 2, Central Business District,
Birkirkara CBD 2010, Malta
Babcock International Limited
5
Babcock International Support Services
Limited
Babcock International US Inc
251 Little Falls
Drive, Wilmington, Delaware
19808, United States
Babcock Investments (Fire Services) Limited
Babcock Investments (Number Four) Limited
Babcock Investments Limited
Babcock IP Management (Number One)
Limited
Babcock IP Management (Number Two)
Limited
Babcock Ireland Finance Limited
44 Esplanade, St Helier, JE4 9WG, Jersey
Babcock Korea Limited
72
-1, Shinsan-ro, Saha-gu, Busan, 49434,
South Korea
Babcock Land Limited
Babcock Land Defence Limited
Babcock M 2019 Limited
Babcock Malta (Number Two) Limited
44 Esplanade, St Helier, JE4 9WG, Jersey
Babcock Management Limited
Babcock Marine (Clyde) Limited
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
Babcock Marine (Devonport) Limited
1
Babcock Marine (Rosyth) Limited
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
Babcock Marine Design Limited
Babcock Marine Holdings (UK) Limited
5
Babcock Marine Limited
Babcock Marine Products Limited*
Babcock Marine Shipbuilding Limited
Babcock Marine Training Limited
1
Babcock MCS Congo SA*
Avenue Charles de Gaulle, PB 5871, Pointe
-
Noire, PB 5871, The Republic of Congo
Babcock Mission Critical Services
Australasia Pty Ltd
Level 9, 70 Franklin Street, Adelaide SA 5000,
Australia
Babcock Mission Critical Services Design
and Completions Limited
Babcock Mission Critical Services (Ireland)
Limited
13
-18 City Quay, Dublin 2, Ireland
Babcock Mission Critical Services Leasing
Limited
Babcock Mission Critical Services Ltd
Babcock Mission Critical Services Onshore
Limited
Babcock Mission Critical Services
Topco Ltd
1
Babcock Mission Critical Services
UK Limited
Babcock MSS Limited
Babcock Norge AS
c/o Ernst&Young, Vassbotnen 11A, Sandnes,
4313, Norway
Babcock Nuclear Limited
Babcock Oman LLC
P.O. Box 2315, Ghala, Muscat, 130, Oman
Babcock Overseas Investments Limited
Babcock Polska sp. z o.o.
Plac Trzech Krzyzy 10/14, 00
-499, Warszawa,
Poland
Babcock Project Investments Limited
Babcock Project Services Limited
Babcock Pty Ltd
Level 9, 70 Franklin Street, Adelaide SA 5000,
Australia
Babcock Rail Limited
Babcock Rail Ireland Limited
Block 1, Harcourt Centre, Harcourt Street,
Dublin, DUBLIN 2, Ireland
Babcock Services Group Limited
Babcock Services Limited
Babcock Southern Careers Limited
Babcock Southern Holdings Limited
6
Babcock Support Services (Investments)
Limited
Babcock Support Services Limited
8
103 Waterloo Street, Glasgow, Scotland, G2
7BW, United Kingdom
Babcock Training Limited
Babcock UK Finance
Babcock Ukraine Limited
Babcock Ukraina LLC
Nazalezhnosti Maidan, Building 2, Kyiv City,
01012, Ukraine
Babcock USA LLC
1
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Babcock US Investments
(Number
Two) LLC
1
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Babcock US Investments Inc.
1
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Babcock US Investments Limited
5
Babcock Vehicle Engineering Limited
4
BNS Pension Trustees Limited*
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
BNS Pensions Limited*
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
Bond Aviation Topco Limited
5
Cavendish Nuclear (Overseas) Limited*
Cavendish Nuclear (USA) Incorporated
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Cavendish Nuclear Japan KK
Regus Tokyo, Arca Central
\u2013 Office 104, Arca
Central Building 14F 1
-2-1, Kinshi , Sumida-ku,
Tokyo, Japan
Cavendish Nuclear Limited
5
Chepstow Insurance Limited
PO Box 155, Mill Court, La Charroterie, St Peter
Port, GY1 4ET, Guernsey
Crucible Training Systems Limited*
Devonport Royal Dockyard Limited
9
Devonport Royal Dockyard Pension
Trustees Limited*
FBM Babcock Marine Holdings (UK) Limited
FBM Babcock Marine Limited
Flagship Fire Fighting Training Limited
INAER Helicopter Chile S.A.*
2880 Americo Vespucio Norte Avenue, Suite
1102, Conchali, Santiago, Chile
LGE IP Management Company Ltd
Rosyth Business Park, Rosyth, Dunfermline,
Fife, Scotland, KY11 2YD, United Kingdom
Liquid Gas Equipment Limited
Rosyth Business Park, Rosyth, Dunfermline,
Fife, Scotland, KY11 2YD, United Kingdom
Liquid Gas Equipment LLC
1
251 Little Falls Drive, Wilmington, Delaware
19808, United States
Liquid Gas Equipment (Singapore) PTE.
Limited
19 Raffles Quay, 33
-03 Hong Leong Building,
048581, Singapore
Marine Engineering & Fabrications Limited
Marine Industrial Design Limited
c/o Babcock Central Office, HMNZ Dockyard,
Devonport Naval Base, Queens Parade,
Devonport, Auckland, 0744, New Zealand
Naval Ship Management (Australia) Pty Ltd
9, 70 Franklin Street, Adelaide, SA 5000,
Australia
Peterhouse Group Limited
Port Babcock Rosyth Limited*
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
PT Babcock Indonesia International
Sahid Sudirman Centre, 56th Floor, JI. Jend.
Sudirman No.86, Jakarta, 10220, Indonesia
Rosyth Royal Dockyard Limited
10
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
Rosyth Royal Dockyard Pension Trustees
Limited*
Rosyth Business Park, Rosyth, Dunfermline, Fife,
KY11 2YD, Scotland
SBRail Limited*
Vosper Thornycroft (UK) Limited
Subsidiaries, partly owned: Babcock Africa (Pty) Limited (90.0%)7 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Africa Holdings (Pty) Ltd (90.0%)11 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Africa Services (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Dyncorp Limited9 (56.0%) Babcock Education and Training (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Financial Services (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Learning and Development Partnership LLP (80.1%) Babcock Mission Critical Services France SA (49.00%) Lieu dit le Portaret, 83340, Le Cannet-des- Maures, France Babcock Mo\u00e7ambique Limitada (90.0%) Av. Samora Machel 3380/1, Mozambique Babcock Namibia Services Pty Ltd (90.0%) Unit 3 Ground Floor, Dr Agostinho Neto Road, Ausspann Plaza, Ausspanplatz, Windhoek, Namibia Babcock Ntuthuko Aviation (Pty) Limited (66.78%)* Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Ntuthuko Engineering (Pty) Limited (46.37%)9 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Ntuthuko Powerlines (Pty) Limited (46.81%)* Unit G3 Victoria House, Plot 132 Independence Avenue, Gaborone, Botswana Babcock Plant Services (Pty) Ltd (64.82%)5 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock TCM Plant (Proprietary) Limited (90.0%)7 Unit G3 Victoria House, Plot 132 Independence Avenue, Gaborone, Botswana Babcock Zambia Limited (90.0%) 16 Arusha, Town Centre, Ndola, Copper Belt, Zambia Cognac Formation Aero (90.0%) Base A\u00e9rienne 709 Cognac 16100 Ch\u00e2teaubernard, France European Hems (Ireland) Limited (49.0%) 4th Floor, 35 Shelbourne Road, Ballsbridge, Dublin 4, Ireland European Hems Limited (49.0%) 4th Floor, 35 Shelbourne Road, Ballsbridge, Dublin 4, Ireland Joint ventures and associates (equity accounted): AirTanker Services Limited (23.5%) 12 AirTanker Hub RAF Brize Norton, Carterton, Oxfordshire, England, OX18 3LX, United Kingdom Alert Communications Group Holdings Limited (20%) Alkali Metal Processing Limited (50.0%) Ascent Flight Training (Holdings) Limited (50.0%) Cavendish Boccard Nuclear Limited (51.0%) Cavendish Dounreay Partnership Limited (50.0%) 9 Cavendish Fluor Partnership Limited (65.0%) Debut Services (South West) Limited (50.0%) 5 Merchant Square, Level 9 London,England, W2 1BQ, United Kingdom Duqm Naval Dockyard SAOC (49.0%) The Special Economic Zone at Duqm, Al -Duqm, Al-Wusta\u2019a, 3972 112, Oman FSP (2004) Limited (50.0%)1 8 Stephenson Place, Hamilton International Technology Park, Blantyre, G72 0LH, Scotland H&B Defence Pty Ltd (49%) Unit G3, 55 Blackall Street, Barton ACT 2600, Australia Okeanus Vermogensverwaltungs GmbH & Co. KG (50.0%) Vorsetzen 54, 20459, Hamburg, Germany Subsidiaries in Members Voluntary Liquidation: Babcock Assessments Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock DS 2019 Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Education and Skills Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Europe Finance Limited Trident Park, Notabile Gardens, No.2 \u2013 Level 3, Mdina Road, Zone 2, Central business District, Birkirkara CBD 2010, Malta Babcock (Ireland) Treasury Limited Custom House Plaza, Block 6, IFSC, Dublin, 1, Ireland Babcock Malta Finance (Number Two) Limited 2 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Malta Holdings Limited 2 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Malta Holdings (Number Two) Limited Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Management 2019 Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Mission Critical Services Germany GmbH Maximiliansplatz 17, 80333, Munich, Germany Marine Engineering & Fabrications Holdings Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Brooke Marine Shipbuilders Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Support Services GmbH Bismarckstra\u00dfe 100, 41061 M\u00f6nchengladbach FBM Marine International (UK) Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom INAER Helicopter Peru S.A.C. 1118 Av. Los Conquistadores, Santa Cruz, San Isidro, Lima, Peru Peterhouse GmbH Bismarckstra\u00dfe 100, 41061 M\u00f6nchengladbach
Joint ventures and associates in
Members Voluntary Liquidation /
Dissolution:
ABC Electrification Ltd (33.3%)
9
Alstom, Litchurch Lane, Derby, England DE24
8AD
Airwork Technical Services & Partners LLC
(51.0%)
PO Box 248 (Muaskar Al Murtafa\u2019a (MAM)
Garrison), Muscat, 100, Sultanate of Oman
Babcock MCS Ghana Limited (90.0%)
No. 9, Carrot Avenue, Adjacent Lizzy Sport
Complex, East Legon, Accra, Ghana
Notes
* Dormant entity.
1. Holding of two types of ordinary shares.
2. Holding of three types of ordinary shares.
3. Holding of four types of ordinary shares.
4. Holding of six types of ordinary shares.
5. Holding of ordinary and preference shares.
6. Holding of ordinary and deferred shares.
7. Holding of ordinary and redeemable
preference shares.
8. Holding of ordinary and five types of
preference shares.
9. Holding of one type of ordinary share only,
where more than one type of share is
authorised or in issue.
10. Holding of two types of ordinary shares,
where more than two types of share are
authorised or in issue.
11. Holding of one type of ordinary share and
one type of preference share, where more
than two types of share are authorised or
in issue.
12. Year end 31 December.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-567": { "value": "14. Investment in and loans to joint ventures and associates The Group\u2019s material joint ventures and associates are:
Nature of % interest % interest Country of Principal area
relationship
Year end
Business activity
held (2026) held (2025) incorporation of operation
AirTanker Services Limited
Associate
31 Dec
Provision of
23.5%
23.5%
United
United
air-to-air refuelling
Kingdom
Kingdom
Ascent Flight Training
Joint venture
31 Mar
Provision of
50.0%
50.0%
United
United
(Holdings) Limited
training services
Kingdom
Kingdom
Summarised financial information for joint ventures and associates The summarised financial information below reflects the amounts presented in the financial statements of the relevant joint ventures and associates, and not the Group\u2019s share of those amounts. These amounts have been adjusted to conform to the Group\u2019s accounting policies where required. The summarised financial information has been aggregated to provide useful information to users without excessive detail. Joint ventures that are not considered material to the Group are not shown below.
31 March 2026
31 March 2025
Ascent Flight
Ascent Flight
Training AirTanker Training AirTanker
(Holdings) Services (Holdings) Services
Summarised income statement extract (year ended)
Limited Limited Limited Limited
Revenue
176.8
275.2
165.3
239.6
Depreciation and amortisation
(0.4)
(2.2)
(0.6)
(3.3)
Interest income
3.2
3.9
3.7
3.7
Interest expense
(2.0)
(0.1)
(2.3)
(0.2)
Income tax expense
(6.6)
(2.7)
(5.9)
(1.8)
Profit/(loss) from continuing operations
20.2
0.4
(2.6)
1.0
Other comprehensive income
\u2013
\u2013
(3.2)
\u2013
Total comprehensive income
20.2
0.4
(5.8)
1.0
Summarised statement of financial position
Non-current assets
16.5
52.9
48.5
75.7
Current assets (excluding cash and cash equivalents)
55.8
72.7
25.0
65.4
Cash and cash equivalents
61.9
114.3
57.3
111.8
Non-current liabilities
(97.1)
(53.2)
(91.6)
(55.0)
Current liabilities
(9.8)
(86.7)
(12.6)
(79.3)
Net assets
27.3
100.0
26.6
118.6
Ownership
50%
23.5%
50%
23.5%
Carrying value of investment
13.7
23.5
13.3
27.9
The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment. Reconciliation to carrying amounts
Investment in joint ventures
Loans to joint ventures
and associates and associates Total
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April
43.5
59.7
3.6
3.9
47.1
63.6
Results from joint ventures and associates
7.4
(2.7)
\u2013
\u2013
7.4
(2.7)
Acquisition and disposal of joint ventures and
associates (note 27)
\u2013
0.4
\u2013
\u2013
\u2013
0.4
Loans repaid by joint ventures and associates
\u2013
\u2013
(0.2)
(0.3)
(0.2)
(0.3)
Interest accrued and capitalised
\u2013
\u2013
0.2
0.2
0.2
0.2
Interest received
\u2013
\u2013
(0.3)
(0.2)
(0.3)
(0.2)
Dividends received
(11.1)
(12.2)
\u2013
\u2013
(11.1)
(12.2)
Fair value adjustment of derivatives
\u2013
(2.2)
\u2013
\u2013
\u2013
(2.2)
Tax on fair value adjustment of derivatives
\u2013
0.5
\u2013
\u2013
\u2013
0.5
Foreign exchange
0.5
\u2013
\u2013
\u2013
0.5
\u2013
At 31 March
40.3
43.5
3.3
3.6
43.6
47.1
The total investments in joint ventures and associates and loans to joint ventures and associates is attributable to the following reportable segments:
2026
2025
\u00a3m \u00a3m
Marine
4.7
3.2
Nuclear
0.1
0.9
Land
0.2
0.2
Aviation
38.6
42.8
Net book value
43.6
47.1
The joint ventures and associates have no significant contingent liabilities to which the Group is exposed. The Group does not have any commitments that have been made to the joint ventures or associates and not recognised at the reporting date. Joint arrangements are classified as joint ventures where the Group has the right to net assets of the joint arrangement rather than separate rights and obligations to the assets and liabilities of the joint arrangement, respectively. There has been no impairment to loans to joint ventures and associates during the year (2025: \u00a3nil). Total cumulative expected credit losses in respect of loans to joint ventures and associates are also \u00a3nil (2025: \u00a3nil) as the joint ventures and associates are considered to have low credit risk and as such impairment risk is considered minimal. There are no significant restrictions on the ability of joint ventures and associates to transfer funds to the owners, other than those imposed by the Companies Act 2006 or equivalent local regulations.
Joint ventures and associates
(equity accounted):
AirTanker Services Limited (23.5%)
12
AirTanker Hub RAF Brize Norton, Carterton,
Oxfordshire, England, OX18 3LX, United
Kingdom
Alert Communications Group Holdings
Limited (20%)
Alkali Metal Processing Limited (50.0%)
Ascent Flight Training (Holdings) Limited
(50.0%)
Cavendish Boccard Nuclear Limited (51.0%)
Cavendish Dounreay Partnership Limited
(50.0%)
9
Cavendish Fluor Partnership Limited (65.0%)
Debut Services (South West) Limited (50.0%)
5 Merchant Square, Level 9 London,England,
W2 1BQ, United Kingdom
Duqm Naval Dockyard SAOC (49.0%)
The Special Economic Zone at Duqm, Al
-Duqm,
Al-Wusta\u2019a, 3972 112, Oman
FSP (2004) Limited (50.0%)1
8 Stephenson Place, Hamilton International
Technology Park, Blantyre, G72 0LH, Scotland
H&B Defence Pty Ltd (49%)
Unit G3, 55 Blackall Street, Barton ACT 2600,
Australia
Okeanus Vermogensverwaltungs
GmbH & Co. KG (50.0%)
Vorsetzen 54, 20459, Hamburg, Germany
Joint ventures and associates in Members Voluntary Liquidation / Dissolution: ABC Electrification Ltd (33.3%)9 Alstom, Litchurch Lane, Derby, England DE24 8AD Airwork Technical Services & Partners LLC (51.0%) PO Box 248 (Muaskar Al Murtafa\u2019a (MAM) Garrison), Muscat, 100, Sultanate of Oman Babcock MCS Ghana Limited (90.0%) No. 9, Carrot Avenue, Adjacent Lizzy Sport Complex, East Legon, Accra, Ghana Notes * Dormant entity. 1. Holding of two types of ordinary shares. 2. Holding of three types of ordinary shares. 3. Holding of four types of ordinary shares. 4. Holding of six types of ordinary shares. 5. Holding of ordinary and preference shares. 6. Holding of ordinary and deferred shares. 7. Holding of ordinary and redeemable preference shares. 8. Holding of ordinary and five types of preference shares. 9. Holding of one type of ordinary share only, where more than one type of share is authorised or in issue. 10. Holding of two types of ordinary shares, where more than two types of share are authorised or in issue. 11. Holding of one type of ordinary share and one type of preference share, where more than two types of share are authorised or in issue. 12. Year end 31 December.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-577": { "value": "14. Investment in and loans to joint ventures and associates The Group\u2019s material joint ventures and associates are:
Nature of % interest % interest Country of Principal area
relationship
Year end
Business activity
held (2026) held (2025) incorporation of operation
AirTanker Services Limited
Associate
31 Dec
Provision of
23.5%
23.5%
United
United
air-to-air refuelling
Kingdom
Kingdom
Ascent Flight Training
Joint venture
31 Mar
Provision of
50.0%
50.0%
United
United
(Holdings) Limited
training services
Kingdom
Kingdom
Summarised financial information for joint ventures and associates The summarised financial information below reflects the amounts presented in the financial statements of the relevant joint ventures and associates, and not the Group\u2019s share of those amounts. These amounts have been adjusted to conform to the Group\u2019s accounting policies where required. The summarised financial information has been aggregated to provide useful information to users without excessive detail. Joint ventures that are not considered material to the Group are not shown below.
31 March 2026
31 March 2025
Ascent Flight
Ascent Flight
Training AirTanker Training AirTanker
(Holdings) Services (Holdings) Services
Summarised income statement extract (year ended)
Limited Limited Limited Limited
Revenue
176.8
275.2
165.3
239.6
Depreciation and amortisation
(0.4)
(2.2)
(0.6)
(3.3)
Interest income
3.2
3.9
3.7
3.7
Interest expense
(2.0)
(0.1)
(2.3)
(0.2)
Income tax expense
(6.6)
(2.7)
(5.9)
(1.8)
Profit/(loss) from continuing operations
20.2
0.4
(2.6)
1.0
Other comprehensive income
\u2013
\u2013
(3.2)
\u2013
Total comprehensive income
20.2
0.4
(5.8)
1.0
Summarised statement of financial position
Non-current assets
16.5
52.9
48.5
75.7
Current assets (excluding cash and cash equivalents)
55.8
72.7
25.0
65.4
Cash and cash equivalents
61.9
114.3
57.3
111.8
Non-current liabilities
(97.1)
(53.2)
(91.6)
(55.0)
Current liabilities
(9.8)
(86.7)
(12.6)
(79.3)
Net assets
27.3
100.0
26.6
118.6
Ownership
50%
23.5%
50%
23.5%
Carrying value of investment
13.7
23.5
13.3
27.9
The Group\u2019s interests in joint ventures and associates are accounted for by the equity method of accounting and are initially recorded at cost. The Group\u2019s investment in joint ventures and associates includes goodwill (net of any accumulated impairment loss) identified on acquisition. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-acquisition profits or losses after tax is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. If the Group\u2019s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the Group does not recognise further losses unless it has incurred obligations to do so. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in the joint venture and associate. Loans to joint ventures are valued at amortised cost less provision for impairment. Reconciliation to carrying amounts
Investment in joint ventures
Loans to joint ventures
and associates and associates Total
2026
2025
2026
2025
2026
2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April
43.5
59.7
3.6
3.9
47.1
63.6
Results from joint ventures and associates
7.4
(2.7)
\u2013
\u2013
7.4
(2.7)
Acquisition and disposal of joint ventures and
associates (note 27)
\u2013
0.4
\u2013
\u2013
\u2013
0.4
Loans repaid by joint ventures and associates
\u2013
\u2013
(0.2)
(0.3)
(0.2)
(0.3)
Interest accrued and capitalised
\u2013
\u2013
0.2
0.2
0.2
0.2
Interest received
\u2013
\u2013
(0.3)
(0.2)
(0.3)
(0.2)
Dividends received
(11.1)
(12.2)
\u2013
\u2013
(11.1)
(12.2)
Fair value adjustment of derivatives
\u2013
(2.2)
\u2013
\u2013
\u2013
(2.2)
Tax on fair value adjustment of derivatives
\u2013
0.5
\u2013
\u2013
\u2013
0.5
Foreign exchange
0.5
\u2013
\u2013
\u2013
0.5
\u2013
At 31 March
40.3
43.5
3.3
3.6
43.6
47.1
The total investments in joint ventures and associates and loans to joint ventures and associates is attributable to the following reportable segments:
2026
2025
\u00a3m \u00a3m
Marine
4.7
3.2
Nuclear
0.1
0.9
Land
0.2
0.2
Aviation
38.6
42.8
Net book value
43.6
47.1
The joint ventures and associates have no significant contingent liabilities to which the Group is exposed. The Group does not have any commitments that have been made to the joint ventures or associates and not recognised at the reporting date. Joint arrangements are classified as joint ventures where the Group has the right to net assets of the joint arrangement rather than separate rights and obligations to the assets and liabilities of the joint arrangement, respectively. There has been no impairment to loans to joint ventures and associates during the year (2025: \u00a3nil). Total cumulative expected credit losses in respect of loans to joint ventures and associates are also \u00a3nil (2025: \u00a3nil) as the joint ventures and associates are considered to have low credit risk and as such impairment risk is considered minimal. There are no significant restrictions on the ability of joint ventures and associates to transfer funds to the owners, other than those imposed by the Companies Act 2006 or equivalent local regulations. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-498": { "value": "15. Inventories Inventory is valued at the lower of cost and net realisable value, being the estimated selling price of the assets in the ordinary course of business less estimated costs of completion and costs of sale. In the case of finished goods and work in progress, cost comprises direct material and labour and an appropriate proportion of overheads. Certain purchases of inventory may be subject to cash flow hedges for foreign exchange risk. The initial cost of hedged inventory is adjusted by the associated hedging gain or loss transferred from the cash flow hedge reserve (\u201cbasis adjustment\u201d). Inventory is valued using a first-in, first-out (\u2018FIFO\u2019) basis. Spare parts that are consumed in the sale of goods or in the rendering of services are classified as inventory.
31 March 2026
31 March 2025
\u00a3m \u00a3m
Raw materials and spares
66.1
62.3
Work
-in-progress
6.0
5.4
Finished goods and goods for resale
134.8
94.5
Total
206.9
162.2
Write-downs of inventories amounted to \u00a320.0 million (2025: \u00a318.7 million). These were recognised as an expense during the year ended
31 March 2026 and included in operating costs in the income statement. Inventory recognised as an expense in the year amounted to
\u00a3388.3 million (2025: \u00a3354.7 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-578": { "value": "Inventory is valued at the lower of cost and net realisable value, being the estimated selling price of the assets in the ordinary course of business less estimated costs of completion and costs of sale. In the case of finished goods and work in progress, cost comprises direct material and labour and an appropriate proportion of overheads. Certain purchases of inventory may be subject to cash flow hedges for foreign exchange risk. The initial cost of hedged inventory is adjusted by the associated hedging gain or loss transferred from the cash flow hedge reserve (\u201cbasis adjustment\u201d). Inventory is valued using a first-in, first-out (\u2018FIFO\u2019) basis. Spare parts that are consumed in the sale of goods or in the rendering of services are classified as inventory.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-499": { "value": "16. Trade and other receivables and contract assets Trade and other receivables Trade receivables are measured at amortised cost. Other receivables are generally measured at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. An immaterial amount of other receivables are held at fair value through profit and loss. The measurement basis is disclosed in note 21. Debt factoring The Group engages in factoring of trade receivables in relation to certain non-UK operations of its Aviation sector as part of its working capital management arrangements. Under these arrangements, the Group transfers the rights to receive factored receivables to the factor in exchange for cash. The Group does not retain late payment or credit risk, and therefore trade receivables are not recognised under the applicable contracts. Any cash received from customers under these contracts is received as agent and transferred directly to the debt factoring counterparty. Contract assets and liabilities Contract assets represent amounts for which the Group has a conditional right to consideration in exchange for goods or services that the Group has transferred to the customer. Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has been received, or consideration is due, from the customer. Payment terms are set out in the contract and reflect the timing and performance of service delivery. For substantially all contracts the payment terms are broadly in line with expected satisfaction of performance obligations, and therefore recognition of revenue. Contract assets or liabilities arise on short term timing differences or in those more limited instances where payment terms do not reflect timing and performance of service delivery. In such cases, consideration is given to whether the contract includes a significant financing component with appropriate accounting. Provisions for expected credit losses Trade receivables, contract receivables and amounts due from related parties include a provision for expected credit losses. Provisions for expected credit losses are measured at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. Costs of obtaining a contract Directly attributable costs to obtain a contract with a customer that the Group would not have incurred if the contract had not been won are recognised as an asset and amortised on a straight-line basis. Costs to obtain a contract that would have been incurred regardless of whether the contract was won or lost are recognised as an expense when incurred. Costs to fulfil a contract Costs to fulfil a contract which do not fall within the scope of another standard are recognised under IFRS 15 as an asset and amortised on a straight-line basis when they meet all of the following criteria: (i) the costs relate directly to a contract or to an anticipated contract that can be specifically identified; (ii) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) the costs are expected to be recovered. Costs of recruiting or training staff are expensed as incurred.
31 March 2026
31 March 2025
\u00a3m \u00a3m
Non-current assets
Costs to obtain a contract
0.1
0.1
Costs to fulfil a contract
16.0
8.6
Other debtors
1.6
9.4
Non
-current trade and other receivables
17.7
18.1
Current assets
Trade receivables
316.1
303.4
Less: provision for impairment of receivables
(9.1)
(8.4)
Trade receivables \u2013 net
307.0
295.0
Retentions
5.1
8.8
Amounts due from related parties (note 31)
5.8
3.3
Other debtors
1
18.1
22.1
Other taxes and social security receivables
94.6
63.2
Prepayments
107.6
96.8
Costs to obtain a contract
\u2013
0.1
Costs to fulfil a contract
13.9
18.1
Current trade and other receivables
552.1
507.4
Contract assets
352.8
329.7
Current trade and other receivables and contract assets
904.9
837.1
1. Included in Other debtors are rebates receivable and other sundry receivables. No individual balance within other debtors is material.
Details of expected credit losses on trade receivables are provided in note 22. There has been no impairment to either other receivables or
contract assets during the year ended 31 March 2026 (2025: \u00a3nil).
In the year ended 31 March 2026, amortisation of costs to obtain a contract and costs to fulfil a contract totalled \u00a38.3 million (2025: \u00a36.2 million).
An impairment of \u00a3nil was recorded in relation to costs to obtain a contract or costs to fulfil a contract (2025: \u00a3nil).
The Group recognises that there is an inherent element of estimation uncertainty and judgement involved in assessing contract profitability,
as disclosed in note 1. Management have taken a best estimate view of contract outcomes based on the information currently available, after
allowing for contingencies, and have applied a constraint to the variable consideration within revenue resulting in a revenue estimate that is
suitably cautious under IFRS 15.
Significant changes in contract assets during the year are as follows:
Contract
assets
\u00a3m
1 April 2025
329.7
Transfers from contract assets recognised at the beginning of the year to trade receivables
(287.9)
Increase due to work done not transferred from contract assets
306.6
Exchange adjustment
4.4
31 March 2026
352.8
1 April 2024
260.9
Transfers from contract assets recognised at the beginning of the year to receivables
(228.8)
Increase due to work done not transferred from contract assets
300.5
Exchange adjustment
(2.9)
31 March 2025
329.7
Details on the Group\u2019s approach to assess credit risk are included in note 22.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-579": { "value": "Trade and other receivables Trade receivables are measured at amortised cost. Other receivables are generally measured at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. An immaterial amount of other receivables are held at fair value through profit and loss. The measurement basis is disclosed in note 21. Debt factoring The Group engages in factoring of trade receivables in relation to certain non-UK operations of its Aviation sector as part of its working capital management arrangements. Under these arrangements, the Group transfers the rights to receive factored receivables to the factor in exchange for cash. The Group does not retain late payment or credit risk, and therefore trade receivables are not recognised under the applicable contracts. Any cash received from customers under these contracts is received as agent and transferred directly to the debt factoring counterparty. Contract assets and liabilities Contract assets represent amounts for which the Group has a conditional right to consideration in exchange for goods or services that the Group has transferred to the customer. Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has been received, or consideration is due, from the customer. Payment terms are set out in the contract and reflect the timing and performance of service delivery. For substantially all contracts the payment terms are broadly in line with expected satisfaction of performance obligations, and therefore recognition of revenue. Contract assets or liabilities arise on short term timing differences or in those more limited instances where payment terms do not reflect timing and performance of service delivery. In such cases, consideration is given to whether the contract includes a significant financing component with appropriate accounting. Provisions for expected credit losses Trade receivables, contract receivables and amounts due from related parties include a provision for expected credit losses. Provisions for expected credit losses are measured at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. Costs of obtaining a contract Directly attributable costs to obtain a contract with a customer that the Group would not have incurred if the contract had not been won are recognised as an asset and amortised on a straight-line basis. Costs to obtain a contract that would have been incurred regardless of whether the contract was won or lost are recognised as an expense when incurred. Costs to fulfil a contract Costs to fulfil a contract which do not fall within the scope of another standard are recognised under IFRS 15 as an asset and amortised on a straight-line basis when they meet all of the following criteria: (i) the costs relate directly to a contract or to an anticipated contract that can be specifically identified; (ii) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) the costs are expected to be recovered. Costs of recruiting or training staff are expensed as incurred. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-527": { "value": "
31 March 2026
31 March 2025
\u00a3m \u00a3m
Non-current assets
Costs to obtain a contract
0.1
0.1
Costs to fulfil a contract
16.0
8.6
Other debtors
1.6
9.4
Non
-current trade and other receivables
17.7
18.1
Current assets
Trade receivables
316.1
303.4
Less: provision for impairment of receivables
(9.1)
(8.4)
Trade receivables \u2013 net
307.0
295.0
Retentions
5.1
8.8
Amounts due from related parties (note 31)
5.8
3.3
Other debtors
1
18.1
22.1
Other taxes and social security receivables
94.6
63.2
Prepayments
107.6
96.8
Costs to obtain a contract
\u2013
0.1
Costs to fulfil a contract
13.9
18.1
Current trade and other receivables
552.1
507.4
Contract assets
352.8
329.7
Current trade and other receivables and contract assets
904.9
837.1
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-500": { "value": "17. Cash and cash equivalents
31 March 2026
31 March 2025
\u00a3m \u00a3m
Cash at bank and in hand
182.6
167.9
Short-term bank deposits
557.3
478.7
739.9
646.6
The carrying amounts of the Group\u2019s cash and cash equivalents are denominated in the following currencies:
31 March 2026
31 March 2025
Total
Floating rate
Total
Floating rate
Currency
\u00a3m \u00a3m \u00a3m \u00a3m
Sterling
479.1
479.1
420.6
420.6
Euro
32.7
32.7
4.8
4.8
US Dollar
21.0
21.0
14.0
14.0
South African Rand
51.2
51.2
43.5
43.5
Canadian Dollar
80.5
80.5
63.7
63.7
Omani Rial
1.0
1.0
1.1
1.1
Australian Dollar
47.8
47.8
65.9
65.9
Norwegian Krone
0.7
0.7
2.4
2.4
Swedish Krona
6.0
6.0
5.0
5.0
New Zealand Dollar
17.3
17.3
12.4
12.4
Other currencies
2.6
2.6
13.2
13.2
739.9
739.9
646.6
646.6
Expected credit losses of cash and cash equivalents is \u00a3nil (2025: \u00a3nil). Included within cash and cash equivalents is \u00a367.1 million (2025: \u00a356.4 million) which is subject to statutory, contractual or regulatory restrictions which limit the ways in which these balances can be utilised. Group cash and cash equivalents consist of cash at bank and cash in hand, together with short-term deposits with an original maturity of three months or less and money market funds. Bank overdrafts that are repayable on demand and form an integral part of the Group\u2019s cash management are treated as cash equivalents for the purpose of the cash flow statement. In the statement of financial position such overdrafts are presented as current bank and other borrowings. Cash and cash equivalents are classified as financial assets held at amortised cost and bank overdrafts are classified as financial liabilities held at amortised cost.", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-580": { "value": "Group cash and cash equivalents consist of cash at bank and cash in hand, together with short-term deposits with an original maturity of three months or less and money market funds. Bank overdrafts that are repayable on demand and form an integral part of the Group\u2019s cash management are treated as cash equivalents for the purpose of the cash flow statement. In the statement of financial position such overdrafts are presented as current bank and other borrowings. Cash and cash equivalents are classified as financial assets held at amortised cost and bank overdrafts are classified as financial liabilities held at amortised cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-501": { "value": "18. Trade and other payables and contract liabilities
2026
2025
\u00a3m \u00a3m
Current liabilities
Contract liabilities
786.2
759.4
Trade creditors
274.3
229.2
Amounts due to related parties (note 31)
\u2013
3.3
Other creditors
18.9
12.2
Defined contribution pension creditor
6.7
8.2
Other taxes and social security
100.5
84.6
Accruals
641.1
610.5
Trade and other payables
1,041.5
948.0
Trade and other payables and contract liabilities
1,827.7
1,707.4
Non-current liabilities
Non-current accruals
5.9
3.8
Other creditors
0.2
0.4
6.1
4.2
Included in creditors is \u00a319.0 million (2025: \u00a310.4 million) relating to capital expenditure which has therefore not been included in working capital movements within the cash flow statement. Significant changes in contract liabilities during the year are as follows:
Contract
liabilities
\u00a3m
1 April 2025
759.4
Revenue recognised that was included in the contract liability balance at the beginning of the year
(628.7)
Cash advanced
649.4
Exchange adjustment
6.1
31 March 2026
786.2
1 April 2024
685.3
Revenue recognised that was included in the contract liability balance at the beginning of the year
(552.3)
Cash advanced
631.0
Exchange adjustment
(4.6)
31 March 2025
759.4
Trade and other creditors are measured at amortised cost. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-528": { "value": "
2026
2025
\u00a3m \u00a3m
Current liabilities
Contract liabilities
786.2
759.4
Trade creditors
274.3
229.2
Amounts due to related parties (note 31)
\u2013
3.3
Other creditors
18.9
12.2
Defined contribution pension creditor
6.7
8.2
Other taxes and social security
100.5
84.6
Accruals
641.1
610.5
Trade and other payables
1,041.5
948.0
Trade and other payables and contract liabilities
1,827.7
1,707.4
Non-current liabilities
Non-current accruals
5.9
3.8
Other creditors
0.2
0.4
6.1
4.2
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-581": { "value": "Trade and other creditors are measured at amortised cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-502": { "value": "
19. Bank and other borrowings
31 March 2026
31 March 2025
\u00a3m \u00a3m
Current liabilities
Bank loans and overdrafts due within one year or on demand
Secured
0.7
0.6
Unsecured
315.3
\u2013
316.0
0.6
Lease obligations*
53.1
47.2
369.1
47.8
Non-current liabilities
Bank and other borrowings
Secured
5.8
6.2
Unsecured
469.1
744.5
474.9
750.7
Lease obligations*
254.2
227.4
729.1
978.1
* Leases are secured against the assets to which they relate.
The Group\u2019s overdraft totalled \u00a316.3 million at 31 March 2026 (2025: \u00a30.1 million). The Group holds one overdraft facility of \u00a350 million which
is otherwise undrawn as at 31 March 2026.
The Group has \u00a31.9 million (2025: \u00a32.5 million) of secured debt in the Land operating segment that is secured against a property owned by
the Group and \u00a34.6 million (2025: \u00a34.3 million) of debt that is secured against contracts with customers, which will cede to the bank in the
event of default.
The Group's Revolving Credit Facility (undrawn as at 31 March 2026 and 31 March 2025) is subject to covenants which are applicable if the
Group has a net rating of less than BBB. If applicable, these covenants are tested six monthly on a rolling basis. Covenants comprise of Net
Debt (covenant basis) to EBITDA and Interest Cover. The Net Debt (covenant basis) to EBITDA ratio must be lower than 3.5x at each testing
date whilst the Interest Cover must be at least 4.0x at each testing date. There are no breaches in the Group\u2019s base case forecasts as
prepared for going concern purposes.
Drawn facilities at the period end date primarily comprise the \u20ac550 million Eurobond and the \u00a3300 million UK bond.
Repayment details
The total borrowings of the Group at 31 March are repayable as follows:
31 March 2026
31 March 2025
Loans and
Lease
Loans and
Lease
overdrafts obligations overdrafts obligations
\u00a3m \u00a3m \u00a3m \u00a3m
Within one year
316.0
53.1
0.6
47.2
Between one and two years
469.8
46.3
297.7
41.4
Between two and three years
5.1
36.7
453.0
32.9
Between three and four years
\u2013
32.5
\u2013
25.6
Between four and five years
\u2013
28.7
\u2013
25.0
Greater than five years
\u2013
110.0
\u2013
102.5
790.9
307.3
751.3
274.6
The Group has entered into interest rate and currency swaps, details of which are included in note 21. The carrying amounts of the Group\u2019s borrowings are denominated in the following currencies:
31 March 2026
31 March 2025
Total
Floating rate
Fixed rate
Total
Floating rate
Fixed rate
Currency
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Sterling
413.1
10.4
402.7
394.6
\u2013
394.6
Euro*
516.3
107.3
409.0
500.4
93.9
406.5
US Dollar
82.5
\u2013
82.5
46.6
\u2013
46.6
South African Rand
9.6
4.6
5.0
8.4
4.2
4.2
Canadian Dollar
8.5
\u2013
8.5
3.3
\u2013
3.3
Australian Dollar
60.3
\u2013
60.3
71.1
\u2013
71.1
New Zealand Dollar
0.9
\u2013
0.9
1.2
\u2013
1.2
South Korean Won
1.3
\u2013
1.3
0.2
\u2013
0.2
Other
5.7
5.7
\u2013
0.1
\u2013
0.1
1,098.2
128.0
970.2
1,025.9
98.1
927.8
* \u20ac550 million (2025: \u20ac550 million) has been swapped into Sterling, with \u20ac140.0 million equivalent (2025: \u20ac140.0 million equivalent) into floating rates and \u20ac410.0 million equivalent (2025: \u20ac410.0 million equivalent) into fixed rates. This is included in the Euro amount above. The split above includes the impact of hedging. The weighted average interest rate of Sterling fixed rate borrowings is 1.9% (2025: 1.9%). The weighted average period for which these interest rates are fixed is 0.5 years (2025: 1.5 years). The floating rate for borrowings is linked to SONIA in the case of Sterling, EURIBOR in the case of Euro, the prime rate in the case of South African Rand and the local prime rate for other currencies. The effective interest rates at the statement of financial position dates, including the impact of hedging, were as follows:
31 March 2026
31 March 2025
% %
UK bank overdraft
N/A
N/A
8-year Eurobond September 2027\u2013 fixed
2.9
2.9
8
-year Eurobond September 2027 \u2013 floating
6.2
6.7
\u00a3300 million bond 2026
1.9
1.9
Other borrowings
5.6 \u2013 9.3
5.6 \u2013 10.0
Leases obligations
3.3 \u2013 14.6
3.3 \u2013 14.6
Borrowing facilities The Group had the following undrawn committed borrowing facilities available at 31 March:
31 March 2026
31 March 2025
\u00a3m \u00a3m
Expiring in more than one year but not more than five years
600.0
775.0
600.0
775.0
21. Financial instruments and fair value measurement Financial assets and liabilities at amortised cost Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the Group assesses credit risk. Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial liabilities held at amortised cost. Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value. The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or liabilities or unrecognised firm commitments. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives that are carried at fair value through profit or loss are recorded in the income statement. Fair value measurement The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the year-end date. Fair value measurements are used on a recurring basis except where used in the acquisition of assets and liabilities through a business combination. The fair values of derivative financial instruments are determined by the use of valuation techniques based on assumptions that are supported by observable market prices or rates. The fair values of non-financial assets and liabilities are based on observable market prices or rates. The carrying values of financial assets and liabilities which are not held at fair value in the Group statement of financial position are assumed to approximate to fair value due to their short-term nature, with the exception of fixed rate bonds. There have been no changes to the valuation techniques used during the year.
The following table presents the Group\u2019s assets and liabilities:
Financial
Financial
Financial assets at Financial liabilities at
assets at amortised liabilities at amortised Total carrying
31 March 202
6 (\u00a3m)
fair value cost fair value cost amount Fair value
Non-current financial assets
Loans to joint ventures and associates
\u2013
3.3
\u2013
\u2013
3.3
3.3
Trade and other receivables*
\u2013
0.6
\u2013
\u2013
0.6
0.6
Financial assets
\u2013
2.9
\u2013
\u2013
2.9
2.9
Derivatives
9.9
\u2013
\u2013
\u2013
9.9
9.9
Lease receivables
\u2013
31.4
\u2013
\u2013
31.4
31.4
Current financial assets
Trade and other receivables*
\u2013
325.1
\u2013
\u2013
325.1
325.1
Financial assets
\u2013
1.3
\u2013
\u2013
1.3
1.3
Lease receivables
\u2013
14.5
\u2013
\u2013
14.5
14.5
Derivatives
8.8
\u2013
\u2013
\u2013
8.8
8.8
Cash and cash equivalents
\u2013
739.9
\u2013
\u2013
739.9
739.9
Non
-current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(474.9)
(474.9)
(458.0)
Lease liabilities
\u2013
\u2013
\u2013
(254.2)
(254.2)
(254.2)
Derivatives
\u2013
\u2013
(21.9)
\u2013
(21.9)
(21.9)
Current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(316.0)
(316.0)
(316.0)
Trade and other payables*
\u2013
\u2013
\u2013
(908.5)
(908.5)
(908.5)
Lease liabilities
\u2013
\u2013
\u2013
(53.1)
(53.1)
(53.1)
Other financial liabilities
\u2013
\u2013
\u2013
(1.0)
(1.0)
(1.0)
Derivatives
\u2013
\u2013
(2.9)
\u2013
(2.9)
(2.9)
Net financial assets / (financial liabilities)
18.7
1,119.0
(24.8)
(2,007.7)
(894.8)
(877.9)
* Trade and other receivables and trade and other payables only include balances which meet the definition of a financial instrument.
Financial
Financial
Financial assets at Financial liabilities at
assets at amortised liabilities at amortised Total carrying
31 March 202
5 (\u00a3m) - Restated
fair value cost fair value cost amount Fair value
Non-current financial assets
Loans to joint ventures and associates
\u2013
3.6
\u2013
\u2013
3.6
3.6
Trade and other receivables*
2.4
5.7
\u2013
\u2013
8.1
8.1
Financial assets
\u2013
4.2
\u2013
\u2013
4.2
4.2
Derivatives
5.1
\u2013
\u2013
\u2013
5.1
5.1
Lease receivables
\u2013
26.2
\u2013
\u2013
26.2
26.2
Current financial assets
Trade and other receivables*
\u2013
317.1
\u2013
\u2013
317.1
317.1
Financial assets
\u2013
1.2
\u2013
\u2013
1.2
1.2
Lease receivables
\u2013
18.4
\u2013
\u2013
18.4
18.4
Derivatives
9.3
\u2013
\u2013
\u2013
9.3
9.3
Cash and cash equivalents
\u2013
646.6
\u2013
\u2013
646.6
646.6
Non-current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(750.7)
(750.7)
(721.8)
Lease liabilities
\u2013
\u2013
\u2013
(227.4)
(227.4)
(227.4)
Derivatives
\u2013
\u2013
(44.8)
\u2013
(44.8)
(44.8)
Current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(0.6)
(0.6)
(0.6)
Trade and other payables*
\u2013
\u2013
\u2013
(830.6)
(830.6)
(830.6)
Lease liabilities
\u2013
\u2013
\u2013
(47.2)
(47.2)
(47.2)
Derivatives
\u2013
\u2013
(9.1)
\u2013
(9.1)
(9.1)
Net financial assets / (financial liabilities)
16.8
1,023.0
(53.9)
(1,856.5)
(870.6)
(841.7)
* Trade and other receivables and trade and other payables only include balances which meet the definition of a financial instrument.
Fair values disclosed for bank and other borrowings measured at amortised cost are based on Level 2 of the fair value hierarchy this is based on
observable inputs being the reported external fair value of the Group\u2019s bonds as at the reporting date.
Comparatives have been restated to include current and non-current lease liabilities which were omitted from the table of financial liabilities in the prior
period. Total balances have increased by an amount commensurate to the lease liability balances.
The fair value hierarchy is as follows:
\u2022
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
\u2022
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (Level 2); and
\u2022
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
All of the financial assets and liabilities measured at fair value are classified as Level 2 or Level 3 using the fair value hierarchy. There were
no transfers between levels during the period. Additional disclosures in respect of financial assets measured using Level 3 techniques are not
provided as such assets are not material.
The fair values of financial instruments held at fair value have been determined based on available market information at the period end date,
and the valuation methodologies listed below:
\u2022
The fair values of forward foreign exchange contracts are calculated by discounting the contracted forward values and translating at the
appropriate period end rates; and
\u2022
The fair values of cross-currency interest rate swaps are calculated by discounting expected future principal and interest cash flows and
translating at the appropriate period end rates.
Financial assets and liabilities in the Group\u2019s Consolidated statement of financial position are either held at fair value or their carrying value
approximates to fair value, with the exception of loans, which are held at amortised cost. Amortised cost items whose fair value or carrying
value approximate to fair value are at Level 2 in the fair value hierarchy. Due to the variability of the valuation factors, the fair values
presented at 31 March may not be indicative of the amounts the Group would expect to realise in the current market environment.
Derivative financial instruments and hedging activities
The Group enters into forward foreign currency contracts and cross-currency interest rate swaps to hedge the currency exposures that arise
on sales, purchases, deposits, borrowings and leasing arrangements denominated in foreign currencies as the transactions occur. Where
derivatives do not meet the hedge accounting criteria, they are accounted for at fair value through profit or loss. Derivatives not designated in
hedge relationships have a net fair value asset of \u00a314.7 million (2025: net asset of \u00a33.5 million), of which \u00a311.8 million (2025: \u00a32.1 million) were
economically hedging \u00a30.9 billion (2025: \u00a31.1 billion) denominated in foreign currencies purchases and sales, \u00a30.9 million (2025: \u00a30.8 million)
was economically hedging interest rates on borrowings (see also note 22) and \u00a32.0 million (2025: \u00a30.6 million) was economically hedging
interest rates on invoice discounting facilities. The Group\u2019s policy regarding classification of derivatives is set out in note 1. The full fair value
of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months.
It is classified as a current asset or liability where the remaining maturity of the hedged item is less than 12 months.
Cash flow hedges
The Group uses cross-currency swap contracts to hedge the foreign currency risk on debt issued by the Group. These are formally
designated in cash flow hedge relationships and hedge ineffectiveness is recognised immediately in the income statement. The fair value of
cash flow hedges at 31 March 2026 was a net liability of \u00a33.9 million (2025: \u00a311.6 million). Further detail is give in note 22.
Fair value hedges
The Group maintains cross-currency interest rate swap contracts as fair value hedges of the interest rate and currency risk on fixed-rate
debt issued by the Group. These derivative contracts receive a fixed rate of interest and pay a variable rate of interest. These are formally
designated in fair value hedging relationships and are used to hedge the exposure to changes in the fair value of debt which has been issued
by the Group at fixed rates. The fair value of such hedges at 31 March 2026 was a liability of \u00a316.8 million (2025: \u00a331.4 million). Further detail
is give in note 22.
22. Financial risk management
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with
floating interest rates and the Group\u2019s cash and cash equivalents.
The Group\u2019s risk management objective, policy and performance are as follows:
Objective
To manage exposure to interest rate fluctuations on borrowings by varying the proportion of fixed rate debt relative to
floating rate debt to reflect the underlying nature of its commitments and obligations. As a result, the Group does not
maintain a speci
fic set proportion of fixed versus floating debt, but monitors the mix to ensure that it is compatible
with its business requirements and capital structure.
Policy
The Group\u2019s interest rate management policy is to monitor the mix of fixed versus floating interest rate debt to ensure
that it is compatible with its business requirements and capital structure.
Risk management
The Group manages interest rate risk through the maintenance of a mixture of fixed and floating rate debt and interest
rate swaps, each being reviewed on a regular basis to ensure the appropriate mix is maintained.
Performance
As
at 31 March
2026
, the Group had 88% fixed rate debt (2025: 90%) and 12% floating rate debt (2025: 10%) based
on gross debt, including lease liabilities, of \u00a31,098.2 million (2025: \u00a31,025.9 million).
The following balances are exposed to interest rate risk as shown below:
31 March 2026
31 March 2025
Between one
Between one
Less than and two Greater than Less than and two Greater than
one year years two years one year years two years
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cash and cash equivalents
739.9
\u2013
\u2013
646.6
\u2013
\u2013
Bank and other borrowings
369.1
516.1
213.0
47.8
339.2
638.9
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings
affected, after the impact of hedge accounting. With all other variables held constant, the Group\u2019s profit before tax is affected through the
impact on floating rate borrowings, as follows:
Year ended 31 March 2026
Year ended 31 March 2025
Effect on profit
Effect on profit
Change in before tax Change in before tax
interest rate \u00a3m interest rate \u00a3m
GBP
3.0%
0.3
3.0%
\u2013
EUR
3.0%
3.2
3.0%
2.8
The effect of fair value hedges on the Group\u2019s financial position and performance for the year is as follows:
Year ended 31 March 2026
Year ended 31 March 2025
Change in
fair value of Change in
hedging fair value of
instrument hedging
Carrying used for Carrying instrument used
Notional amount of calculating Notional amount of for calculating
principal hedging hedge principal hedging hedge
Hedging instruments (\u00a3m)
amount instrument ineffectiveness amount instrument ineffectiveness
Cross currency interest rate swap
1
246.7
(16.8)
14.6
246.7
(31.4)
5.3
1. The Group has entered into three cross-currency interest rate swaps to convert \u20ac275 million of fixed rate (1.375%) debt to GBP debt linked to SONIA.
This matures on 13 September 2027. Additionally, as part of the Group\u2019s financial risk management response in relation to interest rate risk, the group
has entered into further interest rate swaps to fix interest rate on floating rate sterling debt \u2013 ie, the aggregated exposure that was created with \u20ac140
million fixed rate debt and the cross-currency swaps which receive Euro fixed and pay GBP floating. These new interest rate swaps were not
designated in the hedge relationship and therefore they are accounted for at fair value through profit and loss.
Year ended 31 March 2026
Year ended 31 March 2025
Amount of
Amount of
Change in ineffectiveness Change in ineffectiveness
Carrying Accumulated fair value used recognised in Carrying Accumulated fair value used recognised in
amount of fair value for calculating the income amount of fair value for calculating the income
Hedged item (\u00a3m)
hedged item adjustments ineffectiveness statement hedged item adjustments ineffectiveness statement
Debt
240.3
9.7
(13.0)
1.6
230.3
12.7
(4.7)
(0.5)
Ineffectiveness is included in the income statement in finance costs.
Liquidity risk
Liquidity risk is the risk that the Group becomes unable to meet payment obligations in a timely manner when they become due.
The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective with regards to liquidity risk is to ensure that there is an appropriate balance between
continuity, flexibility and cost of debt funding through the use of borrowings, whilst also diversifying the sources of
these borrowings with a r
ange of maturities and rates of interest, to reflect the long-term nature of the Group\u2019s
contracts and commitments and its risk profile.
Policy
The Group\u2019s policy is to ensure the business is prudently funded and that sufficient liquidity headroom is maintained
on its facilities.
Risk management
Liquidity risk management includes maintaining sufficient cash and the availability of funding from an adequate
amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, Group treasury
maintains flexibility in funding b
y maintaining cash and/or availability under committed credit lines.
Each of the sectors in the Group provides regular cash forecasts for liquidity planning purposes. These cash forecasts
are used to monitor and identify the liquidity requirements of the Group, and to ensure that there is sufficient liquidity
to meet operat
ional needs while maintaining sufficient headroom on the Group\u2019s committed borrowing facilities.
The Group utilises debt factoring in support of the non
-UK operations of its Aviation sector as part of its working
capital management arrangements.
Performance
The Group continues to keep under review its capital structure to ensure that the sources, tenor and availability of
finance are sufficient to meet its stated objectives. No new facilities have been entered into.
The contracted cash outflows on bank and other borrowings, derivatives and lease liabilities at the reporting date are shown below, based on
contractual undiscounted payments. Interest payments predominantly relate to repayments on the \u20ac550m Eurobond and the \u00a3300m bond
and have been calculated based on the contractual fixed interest rates. Eurobond interest has been translated based on the prevailing
exchange rates at the balance sheet date.
Less than
Between
Between
Over
1 year 1 and 2 years 2 and 5 years 5 years Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 31 March 2026
Bank and other borrowings \u2013 repayment of overdraft and loan principal
316.9
471.8
5.1
\u2013
793.8
Bank and other borrowings \u2013 interest payments
9.7
3.4
0.4
\u2013
13.5
Derivatives cash outflows settled gross
464.2
763.1
875.4
30.4
2,133.1
Undiscounted lease payments
66.6
58.9
124.3
131.4
381.2
At 31 March 2025
Bank and other borrowings \u2013 repayment of overdraft and loan principal
0.6
299.8
453.0
\u2013
753.4
Bank and other borrowings \u2013 interest payments
12.5
9.7
3.4
\u2013
25.6
Derivatives cash outflows settled gross
590.7
274.5
897.2
8.4
1,770.8
Undiscounted lease payments
55.5
53.7
106.0
130.0
345.2
The impact of discounting for lease payments is \u00a373.9 million (restated 2025: \u00a370.6 million) resulting in lease liabilities of \u00a3307.3 million
(2025: \u00a3274.6 million). Other financial liabilities not included in the table above such as trade and other payables are all expected to be
settled within one year.
Currency risk
Currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in foreign exchange
rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when
revenue or expense is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries.
The functional currency of Babcock International Group PLC and its UK subsidiaries is GBP. The presentation currency of the Group is GBP.
The Group has exposure primarily to EUR, ZAR, AUD and CAD.
The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective is to reduce exposure to volatility in earnings and cash flows from movements in foreign
currency exchange rates. The Group is exposed to a number of foreign currencies, the most significant being the
EUR, ZAR, AUD and CAD.
Policy \u2013
In order to mitigate the currency risk of adverse currency movements on foreign currency denominated
Transactional risk
transactions, the Group\u2019s policy is to hedge all foreign currency transactions greater than \u00a310k, using financial
instruments where appropriate. The Group applies IFRS 9 hedge accounting treatment where appropriate.
Policy
\u2013
The Group is also exposed to adverse foreign currency movements on translation of net assets and income
Translational risk
statements of foreign subsidiaries and joint ventures and associates. It is not the Group\u2019s policy to hedge through the
use of derivatives the translati
on effect of exchange rate movements on the income statements or statement of
financial positions of overseas subsidiaries and joint ventures and associates it regards as long
-term investments.
However, where the Group has material assets denominated in a
foreign currency, it will consider matching the
assets with foreign currency denominated debt.
Risk management
Currency risk management includes hedging the underlying foreign currency exposures in the foreign exchange
market with approved counterparties. Currency transactions are recorded and monitored in the treasury
management system. Each of the sectors in the
Group provides a quarterly foreign currency exposure report to
monitor the level of currency hedge cover is appropriate.
Performance
All material firm transactional exposures are economically hedged using foreign exchange forward contracts.
The effect of cash flow hedges on the Group\u2019s financial position and performance in the year was as follows:
Year ended 31 March 2026
Amount
Change in fair Change in fair reclassified
value used for value recognised from cash Ineffectiveness
calculating in other flow hedge recognised in
Nominal Carrying Hedged hedge comprehensive reserve to profit and loss
Hedging instruments (\u00a3m)
amount value Maturity rate effectiveness income finance cost (finance cost)
Hedge instrument: Cross currency swap
\u20ac275m
(3.9)
13/09/27
1.115
7.7
7.7
(10.0)
\u2013
Hedged item: EUR-denominated debt
\u20ac275m
N/A
13/09/27
N/A
(10.0)
N/A
N/A
N/A
New derivatives executed to hedge purchases and sales in foreign currencies have been treated as economic hedges with the fair value
changes recognised in the income statement rather than through other comprehensive income and therefore disclosure has not been
provided on such items.
Year ended 31 March 2025
Amount
Change in fair Change in fair reclassified
value used for value recognised from cash Ineffectiveness
calculating in other flow hedge recognised in
Nominal Carrying Hedged hedge comprehensive reserve to profit and loss
Hedging instruments (\u00a3m)
amount value Maturity rate effectiveness income finance cost (finance cost)
Hedge instrument: Cross currency swap
\u20ac275m
(\u00a311.6)
13/09/27
1.115
1.9
(1.9)
4.8
\u2013
Hedged item: EUR-denominated debt
\u20ac275m
N/A
13/09/27
N/A
(4.8)
N/A
N/A
N/A
Year ended 31 March 2026 Year ended 31 March 2025
Effect
Effect
Change in Effect on other Change in Effect on other
foreign on profit components foreign on profit components
currency before tax of equity currency before tax of equity
rate \u00a3m \u00a3m rate \u00a3m \u00a3m
EUR *
5%
(1.6)
(1.6)
5%
(1.0)
(1.0)
ZAR
5%
(1.4)
(1.4)
5%
(1.6)
(1.6)
AUD
5%
(0.3)
(0.3)
5%
(0.3)
(0.3)
CAD
5%
(0.8)
(0.8)
5%
(0.7)
(0.7)
Sensitivity analysis on currency risk has been prepared based on an approximation of reasonably possible changes in foreign exchange rates
relative to the Group\u2019s functional and reporting currency.
Under the Group\u2019s economic hedging policy, the terms of the forward contracts are arranged to align with the expected timing, currency and
amounts of the hedged items. The Group typically enters into forward contracts where the hedge ratio is 1:1 on the basis that the notional
amount of the designated hedging instruments matches the principal amount of the forecast foreign currency transaction.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations to the Group, which would result in a loss for the Group. Credit risk arises
from trade and other receivables, cash and cash equivalents, investments and derivative financial instruments.
The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective is to ensure that the Group continues to operate with an acceptable level of credit risk, based
on management\u2019s judgement, associated with its operating activities, such as customer trade receivables, and
financial activities, including cash deposits and financial instruments.
Policy
The Group\u2019s policy is to manage credit risk by setting and reviewing appropriate credit limits for non-government
commercial customers, being the Group\u2019s main exposure to credit risk. With regards to financial institutions, credit
limits will be set accord
ing to the respective financial institution\u2019s credit rating. Counterparty bank credit risk is closely
monitored on a systematic and ongoing basis.
Risk management
Credit
risk management includes performing credit checks on non-government commercial customers and setting
and only performing financial transactions with approved investment grade counterparties.
Performance
Expected credit loss on trade receivable portfolio/provisions of \u00a39.1 million (2025: \u00a38.4 million). The carrying amount
of the Group\u2019s financial assets represents the maximum exposure to credit risk.
Cash and cash equivalents and derivative financial instruments
The Group utilises approved investment-grade counterparties to carry out treasury transactions, including investments of cash and cash
equivalents, with counterparty bank credit risk being monitored closely on a systematic and ongoing basis. A credit limit is allocated to each
institution taking account of its market capitalisation and credit rating, and as such credit risk on these counterparties is not considered to be
material to the financial statements.
The Group\u2019s counterparty credit rating is as follows:
31 March 2026
31 March 2025
AA- or higher
39.6%
14.8%
A+ to A-
55.6%
77.4%
BBB+ to BB-
4.8%
7.8%
Trade receivables
The Group\u2019s assessment is that credit risk in relation to customers or sub-contractors to governments is limited as their probability of default
is considered to be extremely low. The provision for expected credit losses for receivables from governments and sub-contractors to
government customers is therefore considered immaterial in the context of the receivables balance. The Group manages credit risk in
relation to trade and other receivables for all non-government commercial customers through various mitigating controls including credit
checks, credit limits and ongoing monitoring. Expected credit losses are assessed for all non-government customers, however this is not
considered to be material to the financial statements.
For trade receivables, contract assets and lease receivables, the Group measures a provision for expected credit losses at an amount equal
to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other assets the
loss allowance is measured using 12-months expected credit losses unless there was a significant increase in credit risk since initial
recognition. Forward-looking factors are applied to homogenous groups of receivables which share characteristics and are based on an
estimate of how corporate failure rates may change relative to historic levels given the current economic environment.
The Group considers that default has occurred when receivables are more than 90 days overdue and recognises a provision of 100% against
all such receivables unless there is evidence of recoverability at the individual receivable level. The movement on the provision for expected
credit losses is as follows:
2026
2025
\u00a3m \u00a3m
Balance at 1 April
(8.4)
(8.5)
Charged to the income statement
(2.6)
(1.0)
Unused amounts reversed
0.5
0.3
Disposal of businesses
\u2013
0.6
Receivables written off as uncollectable
1.4
0.1
Exchange differences
\u2013
0.1
Balance at 31 March
(9.1)
(8.4)
The creation and release of provisions for impairment of receivables have been included in operating costs in the income statement.
The Group writes off a receivable when there is evidence that the debtor is in significant financial difficulty and there is no realistic prospect
of recovery, for example, when a debtor enters bankruptcy or financial reorganisation. The ageing of trade receivables is detailed below:
Year ended 31 March 2026 Year ended 31 March 2025
Gross
Provision
Net
Gross
Provision
Net
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Not past due
249.0
\u2013
249.0
250.0
\u2013
250.0
Up to 90 days overdue
32.7
(0.1)
32.6
29.6
(0.3)
29.3
Past 90 days overdue
34.4
(9.0)
25.4
23.8
(8.1)
15.7
316.1
(9.1)
307.0
303.4
(8.4)
295.0
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above. The Group
does not hold any collateral as security other than retention of title clauses issued as part of the ordinary course of business.
For contract assets the expected credit loss provision is immaterial as the probability of default is insignificant. No expected loss provision
has been recorded in respect of loans to joint ventures and associates.
Offsetting financial assets and liabilities
Year ended 31 March 2026 Year ended 31 March 2025
Balance
Amounts not
Net
Balance
Amounts not
Net
sheet
offset
1
balances sheet
offset
1
balances
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Assets
Cash and cash equivalents
739.9
(16.3)
723.6
646.6
(0.1)
646.5
Derivatives
18.7
(18.7)
\u2013
14.4
(14.4)
\u2013
Liabilities
Bank and other borrowings
(16.3)
16.3
\u2013
(0.1)
0.1
\u2013
Derivatives
(24.8)
18.7
(6.1)
(53.9)
14.4
(39.5)
1. The Group has the legal right of offset within certain of its banking arrangements, however there is no intention to net settle these balances shortly
after the period end and therefore these have been presented gross in accordance with IAS 32. The Group also has derivative assets and liabilities
with the same financial institutions which also have offset language to allow for net settlement, however the Group has no intention to net settle and
therefore the IAS 32 criteria are not satisfied and the derivative asset and derivative liabilities have been presented gross in the statement of financial
position.
Capital risk
Capital risk is the risk that the entity may not be able to continue as a going concern. The capital structure of the Group consists of net debt
(cash and cash equivalents, bank overdrafts, loans, including the interest rate and foreign exchange derivatives which hedge the loans,
lease liabilities, lease receivables and loans to joint ventures and associates) and equity of the Group (comprising issued capital, reserves,
retained earnings and non-controlling interests. The Group is not subject to any externally imposed capital requirements.
The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objectives when managing capital are to safeguard its ability to continue as a going concern, and to
provide returns for shareholders and other stakeholder benefits.
Policy
The Group\u2019s policy is to protect and strengthen the Group statement of financial position through the appropriate
balance of debt and equity funding.
Risk management
The Group manages its capital structure and makes adjustments in response to changes to economic conditions and
the strategic objectives of the Group. The Group raises finance in the public debt market from financial institutions,
using a variety of capital market instruments and borrowing facilities.
Performance
No new facilities have been entered into in the current or prior period nor have any facilities been withdrawn or removed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-529": { "value": "19. Bank and other borrowings
31 March 2026
31 March 2025
\u00a3m \u00a3m
Current liabilities
Bank loans and overdrafts due within one year or on demand
Secured
0.7
0.6
Unsecured
315.3
\u2013
316.0
0.6
Lease obligations*
53.1
47.2
369.1
47.8
Non-current liabilities
Bank and other borrowings
Secured
5.8
6.2
Unsecured
469.1
744.5
474.9
750.7
Lease obligations*
254.2
227.4
729.1
978.1
* Leases are secured against the assets to which they relate. The Group\u2019s overdraft totalled \u00a316.3 million at 31 March 2026 (2025: \u00a30.1 million). The Group holds one overdraft facility of \u00a350 million which is otherwise undrawn as at 31 March 2026. The Group has \u00a31.9 million (2025: \u00a32.5 million) of secured debt in the Land operating segment that is secured against a property owned by the Group and \u00a34.6 million (2025: \u00a34.3 million) of debt that is secured against contracts with customers, which will cede to the bank in the event of default. The Group's Revolving Credit Facility (undrawn as at 31 March 2026 and 31 March 2025) is subject to covenants which are applicable if the Group has a net rating of less than BBB. If applicable, these covenants are tested six monthly on a rolling basis. Covenants comprise of Net Debt (covenant basis) to EBITDA and Interest Cover. The Net Debt (covenant basis) to EBITDA ratio must be lower than 3.5x at each testing date whilst the Interest Cover must be at least 4.0x at each testing date. There are no breaches in the Group\u2019s base case forecasts as prepared for going concern purposes. Drawn facilities at the period end date primarily comprise the \u20ac550 million Eurobond and the \u00a3300 million UK bond. Repayment details The total borrowings of the Group at 31 March are repayable as follows:
31 March 2026
31 March 2025
Loans and
Lease
Loans and
Lease
overdrafts obligations overdrafts obligations
\u00a3m \u00a3m \u00a3m \u00a3m
Within one year
316.0
53.1
0.6
47.2
Between one and two years
469.8
46.3
297.7
41.4
Between two and three years
5.1
36.7
453.0
32.9
Between three and four years
\u2013
32.5
\u2013
25.6
Between four and five years
\u2013
28.7
\u2013
25.0
Greater than five years
\u2013
110.0
\u2013
102.5
790.9
307.3
751.3
274.6
The Group has entered into interest rate and currency swaps, details of which are included in note 21.
The carrying amounts of the Group\u2019s borrowings are denominated in the following currencies:
31 March 2026
31 March 2025
Total
Floating rate
Fixed rate
Total
Floating rate
Fixed rate
Currency
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Sterling
413.1
10.4
402.7
394.6
\u2013
394.6
Euro*
516.3
107.3
409.0
500.4
93.9
406.5
US Dollar
82.5
\u2013
82.5
46.6
\u2013
46.6
South African Rand
9.6
4.6
5.0
8.4
4.2
4.2
Canadian Dollar
8.5
\u2013
8.5
3.3
\u2013
3.3
Australian Dollar
60.3
\u2013
60.3
71.1
\u2013
71.1
New Zealand Dollar
0.9
\u2013
0.9
1.2
\u2013
1.2
South Korean Won
1.3
\u2013
1.3
0.2
\u2013
0.2
Other
5.7
5.7
\u2013
0.1
\u2013
0.1
1,098.2
128.0
970.2
1,025.9
98.1
927.8
* \u20ac550 million (2025: \u20ac550 million) has been swapped into Sterling, with \u20ac140.0 million equivalent (2025: \u20ac140.0 million equivalent) into floating rates
and \u20ac410.0 million equivalent (2025: \u20ac410.0 million equivalent) into fixed rates. This is included in the Euro amount above. The split above includes
the impact of hedging.
The weighted average interest rate of Sterling fixed rate borrowings is 1.9% (2025: 1.9%). The weighted average period for which these
interest rates are fixed is 0.5 years (2025: 1.5 years).
The floating rate for borrowings is linked to SONIA in the case of Sterling, EURIBOR in the case of Euro, the prime rate in the case of
South African Rand and the local prime rate for other currencies.
The effective interest rates at the statement of financial position dates, including the impact of hedging, were as follows:
31 March 2026
31 March 2025
% %
UK bank overdraft
N/A
N/A
8-year Eurobond September 2027\u2013 fixed
2.9
2.9
8
-year Eurobond September 2027 \u2013 floating
6.2
6.7
\u00a3300 million bond 2026
1.9
1.9
Other borrowings
5.6 \u2013 9.3
5.6 \u2013 10.0
Leases obligations
3.3 \u2013 14.6
3.3 \u2013 14.6
Borrowing facilities
The Group had the following undrawn committed borrowing facilities available at 31 March:
31 March 2026
31 March 2025
\u00a3m \u00a3m
Expiring in more than one year but not more than five years
600.0
775.0
600.0
775.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-530": { "value": "20. Provisions for other liabilities, including other employee benefits A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an appropriate discount rate. A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been publicly announced. Future operating costs are not provided for. A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. Onerous contract provisions are recognised after impairment of any assets directly related to the onerous contract. A provision for warranties is recognised on completed contracts and disposals when there is a realistic expectation of the Group incurring further costs.
Contract/ Employee related and
warranty business reorganisation Property Legal Other Total
(a) costs (b) (c) (d) (e) provisions
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
97.0
15.2
17.6
6.0
2.5
138.3
Charge to income statement
70.3
7.3
4.7
25.6
7.8
115.7
Release to the income statement
(22.3)
(3.2)
(2.1)
(0.3)
(0.4)
(28.3)
Utilised in year
(20.7)
(5.2)
(0.1)
(0.3)
(1.0)
(27.3)
Unwinding of discount
2.0
0.1
0.2
\u2013
\u2013
2.3
Foreign exchange
0.5
0.1
0.2
\u2013
\u2013
0.8
At 31 March 2026
126.8
14.3
20.5
31.0
8.9
201.5
Current
119.7
Non
-current
81.8
At 1 April 202
4
117.8
12.4
23.5
2.5
2.0
158.2
Charge to income statement
31.5
8.3
7.1
4.0
1.3
52.2
Release to the income statement
(13.9)
(1.3)
(9.9)
\u2013
(0.7)
(25.8)
Utilised in year
(42.3)
(5.0)
(0.5)
(0.5)
(0.3)
(48.6)
Reclassification
1.4
0.7
(2.3)
\u2013
0.2
\u2013
Disposal of business
\u2013
\u2013
(0.3)
\u2013
\u2013
(0.3)
Unwinding of discount
2.7
0.1
\u2013
\u2013
\u2013
2.8
Foreign exchange
(0.2)
\u2013
\u2013
\u2013
\u2013
(0.2)
At 31 March 202
5
97.0
15.2
17.6
6.0
2.5
138.3
Current
80.2
Non
-current
58.1
a) Contract/warranty provisions relate to onerous contracts and warranty obligations on completed contracts and disposals. Warranty provisions are provided in the normal course of business and recognised when the underlying products and services are sold. The provision is based on an assessment of future claims with reference to historical warranty data and a weighting of possible outcomes. Onerous contracts relate to expected future losses on contracts with customers \u2013 notably Type 31 as outlined in note 1. b) Employee related and business reorganisation costs relate to business restructuring activities including announced redundancies in addition to employee related provisions other than employee benefits. c) Property and other provisions primarily relate to dilapidation costs and contractual obligations in respect of infrastructure. d) Legal provisions relate to ongoing legal matters \u2013 this category has been disaggregated from other provisions during the period as a result of the material closing balance in 2026. The increase in legal provisions includes an unexpected court judgement in a legacy overseas legal case. The \u00a325.6 million in amounts charged to the income statement includes \u00a317.0 million classified as operating expenses (of which approximately half relates to the unexpected court judgement) and \u00a38.6 million classified as interest expenses. The timing and extent of cash flows in regards to legal provisions is uncertain pending any appeal process and associated outcome. e) Other provisions include environmental provisions and provisions for insurance claims arising within the Group\u2019s captive insurance company, Chepstow Insurance Limited. They relate to specific claims assessed in accordance with the advice of independent actuaries. Provisions for onerous revenue contracts are recorded when it becomes probable that total remaining contract fulfilment costs will exceed total remaining revenue not yet recognised. Provisions for losses on contracts are recognised after impairment of any assets directly related to fulfilling the loss-making contract. Losses are determined on the basis of estimated results on completion of contracts and are updated regularly. A provision for the contractual maintenance, overhaul and repair requirements of right of use aircraft and specific associated aircraft components arising from return condition obligations in aircraft lease contracts is recognised as the obligation to perform contractual maintenance arises with each hour flown. Where lease contracts contain contractual penalties in the event that the Group returns leased aircraft in a condition that does not meet the contractual return condition obligation, the associated provision is measured at the lower of the restoration cost and the detriment penalty in the lease. When maintenance of a leased aircraft component is performed, if the component\u2019s remaining flying hours are greater than the return condition outlined in the lease contract then a leasehold improvement asset is recognised in proportion to the excess flying hours above the contractual return condition. Maintenance provisions are not recognised in respect of aircraft components which are maintained under Power-by-the-hour maintenance arrangements, instead the associated payments to the maintenance provider are expensed as incurred. Any additional payments made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income at the time at which they are incurred or received. Included within employee related and business reorganisation provisions is \u00a37.4 million (2025: \u00a37.0 million) expected to be utilised over approximately 10 years. Other than these provisions the Group\u2019s non-current provisions are expected to be utilised within two to five years. 29. Contingent liabilities There are a number of contingent liabilities that arise in the normal course of business, including: a) The nature of the Group\u2019s long-term contracts means that there are reasonably frequent contractual issues, variations and renegotiations that arise in the ordinary course of business, including liabilities that arise on completion of contracts and on conclusion of relationships with joint ventures and associates. The Group takes account of the advice of experts, both internal and external, in making judgements on contractual issues and whether the outcome of negotiations will result in an obligation to the Group. The Directors do not believe that the outcome of these matters will result in any material adverse change in the Group\u2019s financial position. b) As a large contracting organisation, the Group has a significant number of contracts with customers to deliver services and products, as well as with its supply chain, where the Group cannot deliver all those services and products itself. The Group is involved in disputes and litigation, which have arisen in the course of its normal trading in connection with these contracts. Whilst the Directors do not believe that the outcome of these matters will result in any material adverse change in the Group\u2019s financial position, it is possible that, if any of these disputes come to court, the court may take a different view to the Group. c) The Group is subject to corporate and other tax rules in the jurisdictions in which it operates. Changes in tax rates, tax reliefs and tax laws, or interpretation of the law, by the relevant tax authorities may result in financial and reputational damage to the Group. This may affect the Group\u2019s financial condition and performance if such matters result in charges in excess of those already provided in the financial statements \u2013 see notes 7 and 20 for further details of amounts provided. d) The Group has given certain indemnities and warranties in the course of disposing of businesses and companies and in completing contracts. The Group believes that any liability in respect of these is unlikely to have a material effect on the Group\u2019s financial position. e) Corporate rules in certain jurisdictions may extend to compensatory trade agreements, or economic offset rules, where we may have to commit to use local content in delivering programmes of work. Delivery of offset is also subject to interpretations of law and agreement with local authorities, which we monitor closely but may give rise to financial and reputational damage to the Group if not undertaken appropriately. A contingent liability is a possible obligation arising from past events whose existence will be confirmed only on the occurrence or non-occurrence of uncertain future events outside the Group\u2019s control, or a present obligation that is not recognised because it is not probable that an outflow of economic benefits will occur or the value of such outflow cannot be measured reliably. The Group does not recognise contingent liabilities in its statement of financial position \u2013 such matters are only recognised in the statement of financial position when the obligation rises from possible to probable and the outflow of economic benefits becomes probable and can be measured reliably. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-503": { "value": "20. Provisions for other liabilities, including other employee benefits A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an appropriate discount rate. A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been publicly announced. Future operating costs are not provided for. A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. Onerous contract provisions are recognised after impairment of any assets directly related to the onerous contract. A provision for warranties is recognised on completed contracts and disposals when there is a realistic expectation of the Group incurring further costs.
Contract/ Employee related and
warranty business reorganisation Property Legal Other Total
(a) costs (b) (c) (d) (e) provisions
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 1 April 2025
97.0
15.2
17.6
6.0
2.5
138.3
Charge to income statement
70.3
7.3
4.7
25.6
7.8
115.7
Release to the income statement
(22.3)
(3.2)
(2.1)
(0.3)
(0.4)
(28.3)
Utilised in year
(20.7)
(5.2)
(0.1)
(0.3)
(1.0)
(27.3)
Unwinding of discount
2.0
0.1
0.2
\u2013
\u2013
2.3
Foreign exchange
0.5
0.1
0.2
\u2013
\u2013
0.8
At 31 March 2026
126.8
14.3
20.5
31.0
8.9
201.5
Current
119.7
Non
-current
81.8
At 1 April 202
4
117.8
12.4
23.5
2.5
2.0
158.2
Charge to income statement
31.5
8.3
7.1
4.0
1.3
52.2
Release to the income statement
(13.9)
(1.3)
(9.9)
\u2013
(0.7)
(25.8)
Utilised in year
(42.3)
(5.0)
(0.5)
(0.5)
(0.3)
(48.6)
Reclassification
1.4
0.7
(2.3)
\u2013
0.2
\u2013
Disposal of business
\u2013
\u2013
(0.3)
\u2013
\u2013
(0.3)
Unwinding of discount
2.7
0.1
\u2013
\u2013
\u2013
2.8
Foreign exchange
(0.2)
\u2013
\u2013
\u2013
\u2013
(0.2)
At 31 March 202
5
97.0
15.2
17.6
6.0
2.5
138.3
Current
80.2
Non
-current
58.1
a) Contract/warranty provisions relate to onerous contracts and warranty obligations on completed contracts and disposals. Warranty provisions are provided in the normal course of business and recognised when the underlying products and services are sold. The provision is based on an assessment of future claims with reference to historical warranty data and a weighting of possible outcomes. Onerous contracts relate to expected future losses on contracts with customers \u2013 notably Type 31 as outlined in note 1. b) Employee related and business reorganisation costs relate to business restructuring activities including announced redundancies in addition to employee related provisions other than employee benefits. c) Property and other provisions primarily relate to dilapidation costs and contractual obligations in respect of infrastructure. d) Legal provisions relate to ongoing legal matters \u2013 this category has been disaggregated from other provisions during the period as a result of the material closing balance in 2026. The increase in legal provisions includes an unexpected court judgement in a legacy overseas legal case. The \u00a325.6 million in amounts charged to the income statement includes \u00a317.0 million classified as operating expenses (of which approximately half relates to the unexpected court judgement) and \u00a38.6 million classified as interest expenses. The timing and extent of cash flows in regards to legal provisions is uncertain pending any appeal process and associated outcome. e) Other provisions include environmental provisions and provisions for insurance claims arising within the Group\u2019s captive insurance company, Chepstow Insurance Limited. They relate to specific claims assessed in accordance with the advice of independent actuaries. Provisions for onerous revenue contracts are recorded when it becomes probable that total remaining contract fulfilment costs will exceed total remaining revenue not yet recognised. Provisions for losses on contracts are recognised after impairment of any assets directly related to fulfilling the loss-making contract. Losses are determined on the basis of estimated results on completion of contracts and are updated regularly. A provision for the contractual maintenance, overhaul and repair requirements of right of use aircraft and specific associated aircraft components arising from return condition obligations in aircraft lease contracts is recognised as the obligation to perform contractual maintenance arises with each hour flown. Where lease contracts contain contractual penalties in the event that the Group returns leased aircraft in a condition that does not meet the contractual return condition obligation, the associated provision is measured at the lower of the restoration cost and the detriment penalty in the lease. When maintenance of a leased aircraft component is performed, if the component\u2019s remaining flying hours are greater than the return condition outlined in the lease contract then a leasehold improvement asset is recognised in proportion to the excess flying hours above the contractual return condition. Maintenance provisions are not recognised in respect of aircraft components which are maintained under Power-by-the-hour maintenance arrangements, instead the associated payments to the maintenance provider are expensed as incurred. Any additional payments made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income at the time at which they are incurred or received.
Included within employee related and business reorganisation provisions is \u00a37.4 million (2025: \u00a37.0 million) expected to be utilised over
approximately 10 years. Other than these provisions the Group\u2019s non-current provisions are expected to be utilised within two to five years.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-582": { "value": "A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an appropriate discount rate. A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been publicly announced. Future operating costs are not provided for. A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. Onerous contract provisions are recognised after impairment of any assets directly related to the onerous contract. A provision for warranties is recognised on completed contracts and disposals when there is a realistic expectation of the Group incurring further costs. Provisions for onerous revenue contracts are recorded when it becomes probable that total remaining contract fulfilment costs will exceed total remaining revenue not yet recognised. Provisions for losses on contracts are recognised after impairment of any assets directly related to fulfilling the loss-making contract. Losses are determined on the basis of estimated results on completion of contracts and are updated regularly. A provision for the contractual maintenance, overhaul and repair requirements of right of use aircraft and specific associated aircraft components arising from return condition obligations in aircraft lease contracts is recognised as the obligation to perform contractual maintenance arises with each hour flown. Where lease contracts contain contractual penalties in the event that the Group returns leased aircraft in a condition that does not meet the contractual return condition obligation, the associated provision is measured at the lower of the restoration cost and the detriment penalty in the lease. When maintenance of a leased aircraft component is performed, if the component\u2019s remaining flying hours are greater than the return condition outlined in the lease contract then a leasehold improvement asset is recognised in proportion to the excess flying hours above the contractual return condition. Maintenance provisions are not recognised in respect of aircraft components which are maintained under Power-by-the-hour maintenance arrangements, instead the associated payments to the maintenance provider are expensed as incurred. Any additional payments made to or received from maintenance providers at the conclusion of Power-by-the-hour maintenance arrangements are recognised as an expense or as income at the time at which they are incurred or received. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-531": { "value": "21. Financial instruments and fair value measurement Financial assets and liabilities at amortised cost Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie s and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the Group assesses credit risk. Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial liabilities held at amortised cost. Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value. The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or liabilities or unrecognised firm commitments. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives that are carried at fair value through profit or loss are recorded in the income statement. Fair value measurement The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the year-end date. Fair value measurements are used on a recurring basis except where used in the acquisition of assets and liabilities through a business combination. The fair values of derivative financial instruments are determined by the use of valuation techniques based on assumptions that are supported by observable market prices or rates. The fair values of non-financial assets and liabilities are based on observable market prices or rates. The carrying values of financial assets and liabilities which are not held at fair value in the Group statement of financial position are assumed to approximate to fair value due to their short-term nature, with the exception of fixed rate bonds. There have been no changes to the valuation techniques used during the year. The following table presents the Group\u2019s assets and liabilities:
Financial
Financial
Financial assets at Financial liabilities at
assets at amortised liabilities at amortised Total carrying
31 March 202
6 (\u00a3m)
fair value cost fair value cost amount Fair value
Non-current financial assets
Loans to joint ventures and associates
\u2013
3.3
\u2013
\u2013
3.3
3.3
Trade and other receivables*
\u2013
0.6
\u2013
\u2013
0.6
0.6
Financial assets
\u2013
2.9
\u2013
\u2013
2.9
2.9
Derivatives
9.9
\u2013
\u2013
\u2013
9.9
9.9
Lease receivables
\u2013
31.4
\u2013
\u2013
31.4
31.4
Current financial assets
Trade and other receivables*
\u2013
325.1
\u2013
\u2013
325.1
325.1
Financial assets
\u2013
1.3
\u2013
\u2013
1.3
1.3
Lease receivables
\u2013
14.5
\u2013
\u2013
14.5
14.5
Derivatives
8.8
\u2013
\u2013
\u2013
8.8
8.8
Cash and cash equivalents
\u2013
739.9
\u2013
\u2013
739.9
739.9
Non
-current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(474.9)
(474.9)
(458.0)
Lease liabilities
\u2013
\u2013
\u2013
(254.2)
(254.2)
(254.2)
Derivatives
\u2013
\u2013
(21.9)
\u2013
(21.9)
(21.9)
Current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(316.0)
(316.0)
(316.0)
Trade and other payables*
\u2013
\u2013
\u2013
(908.5)
(908.5)
(908.5)
Lease liabilities
\u2013
\u2013
\u2013
(53.1)
(53.1)
(53.1)
Other financial liabilities
\u2013
\u2013
\u2013
(1.0)
(1.0)
(1.0)
Derivatives
\u2013
\u2013
(2.9)
\u2013
(2.9)
(2.9)
Net financial assets / (financial liabilities)
18.7
1,119.0
(24.8)
(2,007.7)
(894.8)
(877.9)
* Trade and other receivables and trade and other payables only include balances which meet the definition of a financial instrument.
Financial
Financial
Financial assets at Financial liabilities at
assets at amortised liabilities at amortised Total carrying
31 March 202
5 (\u00a3m) - Restated
fair value cost fair value cost amount Fair value
Non-current financial assets
Loans to joint ventures and associates
\u2013
3.6
\u2013
\u2013
3.6
3.6
Trade and other receivables*
2.4
5.7
\u2013
\u2013
8.1
8.1
Financial assets
\u2013
4.2
\u2013
\u2013
4.2
4.2
Derivatives
5.1
\u2013
\u2013
\u2013
5.1
5.1
Lease receivables
\u2013
26.2
\u2013
\u2013
26.2
26.2
Current financial assets
Trade and other receivables*
\u2013
317.1
\u2013
\u2013
317.1
317.1
Financial assets
\u2013
1.2
\u2013
\u2013
1.2
1.2
Lease receivables
\u2013
18.4
\u2013
\u2013
18.4
18.4
Derivatives
9.3
\u2013
\u2013
\u2013
9.3
9.3
Cash and cash equivalents
\u2013
646.6
\u2013
\u2013
646.6
646.6
Non-current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(750.7)
(750.7)
(721.8)
Lease liabilities
\u2013
\u2013
\u2013
(227.4)
(227.4)
(227.4)
Derivatives
\u2013
\u2013
(44.8)
\u2013
(44.8)
(44.8)
Current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(0.6)
(0.6)
(0.6)
Trade and other payables*
\u2013
\u2013
\u2013
(830.6)
(830.6)
(830.6)
Lease liabilities
\u2013
\u2013
\u2013
(47.2)
(47.2)
(47.2)
Derivatives
\u2013
\u2013
(9.1)
\u2013
(9.1)
(9.1)
Net financial assets / (financial liabilities)
16.8
1,023.0
(53.9)
(1,856.5)
(870.6)
(841.7)
* Trade and other receivables and trade and other payables only include balances which meet the definition of a financial instrument. Fair values disclosed for bank and other borrowings measured at amortised cost are based on Level 2 of the fair value hierarchy this is based on observable inputs being the reported external fair value of the Group\u2019s bonds as at the reporting date. Comparatives have been restated to include current and non-current lease liabilities which were omitted from the table of financial liabilities in the prior period. Total balances have increased by an amount commensurate to the lease liability balances. The fair value hierarchy is as follows: \u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); \u2022 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and \u2022 Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). All of the financial assets and liabilities measured at fair value are classified as Level 2 or Level 3 using the fair value hierarchy. There were no transfers between levels during the period. Additional disclosures in respect of financial assets measured using Level 3 techniques are not provided as such assets are not material. The fair values of financial instruments held at fair value have been determined based on available market information at the period end date, and the valuation methodologies listed below: \u2022 The fair values of forward foreign exchange contracts are calculated by discounting the contracted forward values and translating at the appropriate period end rates; and \u2022 The fair values of cross-currency interest rate swaps are calculated by discounting expected future principal and interest cash flows and translating at the appropriate period end rates. Financial assets and liabilities in the Group\u2019s Consolidated statement of financial position are either held at fair value or their carrying value approximates to fair value, with the exception of loans, which are held at amortised cost. Amortised cost items whose fair value or carrying value approximate to fair value are at Level 2 in the fair value hierarchy. Due to the variability of the valuation factors, the fair values presented at 31 March may not be indicative of the amounts the Group would expect to realise in the current market environment. Derivative financial instruments and hedging activities The Group enters into forward foreign currency contracts and cross-currency interest rate swaps to hedge the currency exposures that arise on sales, purchases, deposits, borrowings and leasing arrangements denominated in foreign currencies as the transactions occur. Where derivatives do not meet the hedge accounting criteria, they are accounted for at fair value through profit or loss. Derivatives not designated in hedge relationships have a net fair value asset of \u00a314.7 million (2025: net asset of \u00a33.5 million), of which \u00a311.8 million (2025: \u00a32.1 million) were economically hedging \u00a30.9 billion (2025: \u00a31.1 billion) denominated in foreign currencies purchases and sales, \u00a30.9 million (2025: \u00a30.8 million) was economically hedging interest rates on borrowings (see also note 22) and \u00a32.0 million (2025: \u00a30.6 million) was economically hedging interest rates on invoice discounting facilities. The Group\u2019s policy regarding classification of derivatives is set out in note 1. The full fair value of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months. It is classified as a current asset or liability where the remaining maturity of the hedged item is less than 12 months. Cash flow hedges The Group uses cross-currency swap contracts to hedge the foreign currency risk on debt issued by the Group. These are formally designated in cash flow hedge relationships and hedge ineffectiveness is recognised immediately in the income statement. The fair value of cash flow hedges at 31 March 2026 was a net liability of \u00a33.9 million (2025: \u00a311.6 million). Further detail is give in note 22. Fair value hedges The Group maintains cross-currency interest rate swap contracts as fair value hedges of the interest rate and currency risk on fixed-rate debt issued by the Group. These derivative contracts receive a fixed rate of interest and pay a variable rate of interest. These are formally designated in fair value hedging relationships and are used to hedge the exposure to changes in the fair value of debt which has been issued by the Group at fixed rates. The fair value of such hedges at 31 March 2026 was a liability of \u00a316.8 million (2025: \u00a331.4 million). Further detail is give in note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-550": { "value": "21. Financial instruments and fair value measurement Financial assets and liabilities at amortised cost Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie s and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the Group assesses credit risk. Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial liabilities held at amortised cost. Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value. The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or liabilities or unrecognised firm commitments. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives that are carried at fair value through profit or loss are recorded in the income statement. Fair value measurement The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the year-end date. Fair value measurements are used on a recurring basis except where used in the acquisition of assets and liabilities through a business combination. The fair values of derivative financial instruments are determined by the use of valuation techniques based on assumptions that are supported by observable market prices or rates. The fair values of non-financial assets and liabilities are based on observable market prices or rates. The carrying values of financial assets and liabilities which are not held at fair value in the Group statement of financial position are assumed to approximate to fair value due to their short-term nature, with the exception of fixed rate bonds. There have been no changes to the valuation techniques used during the year. The following table presents the Group\u2019s assets and liabilities:
Financial
Financial
Financial assets at Financial liabilities at
assets at amortised liabilities at amortised Total carrying
31 March 202
6 (\u00a3m)
fair value cost fair value cost amount Fair value
Non-current financial assets
Loans to joint ventures and associates
\u2013
3.3
\u2013
\u2013
3.3
3.3
Trade and other receivables*
\u2013
0.6
\u2013
\u2013
0.6
0.6
Financial assets
\u2013
2.9
\u2013
\u2013
2.9
2.9
Derivatives
9.9
\u2013
\u2013
\u2013
9.9
9.9
Lease receivables
\u2013
31.4
\u2013
\u2013
31.4
31.4
Current financial assets
Trade and other receivables*
\u2013
325.1
\u2013
\u2013
325.1
325.1
Financial assets
\u2013
1.3
\u2013
\u2013
1.3
1.3
Lease receivables
\u2013
14.5
\u2013
\u2013
14.5
14.5
Derivatives
8.8
\u2013
\u2013
\u2013
8.8
8.8
Cash and cash equivalents
\u2013
739.9
\u2013
\u2013
739.9
739.9
Non
-current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(474.9)
(474.9)
(458.0)
Lease liabilities
\u2013
\u2013
\u2013
(254.2)
(254.2)
(254.2)
Derivatives
\u2013
\u2013
(21.9)
\u2013
(21.9)
(21.9)
Current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(316.0)
(316.0)
(316.0)
Trade and other payables*
\u2013
\u2013
\u2013
(908.5)
(908.5)
(908.5)
Lease liabilities
\u2013
\u2013
\u2013
(53.1)
(53.1)
(53.1)
Other financial liabilities
\u2013
\u2013
\u2013
(1.0)
(1.0)
(1.0)
Derivatives
\u2013
\u2013
(2.9)
\u2013
(2.9)
(2.9)
Net financial assets / (financial liabilities)
18.7
1,119.0
(24.8)
(2,007.7)
(894.8)
(877.9)
* Trade and other receivables and trade and other payables only include balances which meet the definition of a financial instrument.
Financial
Financial
Financial assets at Financial liabilities at
assets at amortised liabilities at amortised Total carrying
31 March 202
5 (\u00a3m) - Restated
fair value cost fair value cost amount Fair value
Non-current financial assets
Loans to joint ventures and associates
\u2013
3.6
\u2013
\u2013
3.6
3.6
Trade and other receivables*
2.4
5.7
\u2013
\u2013
8.1
8.1
Financial assets
\u2013
4.2
\u2013
\u2013
4.2
4.2
Derivatives
5.1
\u2013
\u2013
\u2013
5.1
5.1
Lease receivables
\u2013
26.2
\u2013
\u2013
26.2
26.2
Current financial assets
Trade and other receivables*
\u2013
317.1
\u2013
\u2013
317.1
317.1
Financial assets
\u2013
1.2
\u2013
\u2013
1.2
1.2
Lease receivables
\u2013
18.4
\u2013
\u2013
18.4
18.4
Derivatives
9.3
\u2013
\u2013
\u2013
9.3
9.3
Cash and cash equivalents
\u2013
646.6
\u2013
\u2013
646.6
646.6
Non-current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(750.7)
(750.7)
(721.8)
Lease liabilities
\u2013
\u2013
\u2013
(227.4)
(227.4)
(227.4)
Derivatives
\u2013
\u2013
(44.8)
\u2013
(44.8)
(44.8)
Current financial liabilities
Bank and other borrowings
\u2013
\u2013
\u2013
(0.6)
(0.6)
(0.6)
Trade and other payables*
\u2013
\u2013
\u2013
(830.6)
(830.6)
(830.6)
Lease liabilities
\u2013
\u2013
\u2013
(47.2)
(47.2)
(47.2)
Derivatives
\u2013
\u2013
(9.1)
\u2013
(9.1)
(9.1)
Net financial assets / (financial liabilities)
16.8
1,023.0
(53.9)
(1,856.5)
(870.6)
(841.7)
* Trade and other receivables and trade and other payables only include balances which meet the definition of a financial instrument. Fair values disclosed for bank and other borrowings measured at amortised cost are based on Level 2 of the fair value hierarchy this is based on observable inputs being the reported external fair value of the Group\u2019s bonds as at the reporting date. Comparatives have been restated to include current and non-current lease liabilities which were omitted from the table of financial liabilities in the prior period. Total balances have increased by an amount commensurate to the lease liability balances. The fair value hierarchy is as follows: \u2022 Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); \u2022 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and \u2022 Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). All of the financial assets and liabilities measured at fair value are classified as Level 2 or Level 3 using the fair value hierarchy. There were no transfers between levels during the period. Additional disclosures in respect of financial assets measured using Level 3 techniques are not provided as such assets are not material. The fair values of financial instruments held at fair value have been determined based on available market information at the period end date, and the valuation methodologies listed below: \u2022 The fair values of forward foreign exchange contracts are calculated by discounting the contracted forward values and translating at the appropriate period end rates; and \u2022 The fair values of cross-currency interest rate swaps are calculated by discounting expected future principal and interest cash flows and translating at the appropriate period end rates. Financial assets and liabilities in the Group\u2019s Consolidated statement of financial position are either held at fair value or their carrying value approximates to fair value, with the exception of loans, which are held at amortised cost. Amortised cost items whose fair value or carrying value approximate to fair value are at Level 2 in the fair value hierarchy. Due to the variability of the valuation factors, the fair values presented at 31 March may not be indicative of the amounts the Group would expect to realise in the current market environment. Derivative financial instruments and hedging activities The Group enters into forward foreign currency contracts and cross-currency interest rate swaps to hedge the currency exposures that arise on sales, purchases, deposits, borrowings and leasing arrangements denominated in foreign currencies as the transactions occur. Where derivatives do not meet the hedge accounting criteria, they are accounted for at fair value through profit or loss. Derivatives not designated in hedge relationships have a net fair value asset of \u00a314.7 million (2025: net asset of \u00a33.5 million), of which \u00a311.8 million (2025: \u00a32.1 million) were economically hedging \u00a30.9 billion (2025: \u00a31.1 billion) denominated in foreign currencies purchases and sales, \u00a30.9 million (2025: \u00a30.8 million) was economically hedging interest rates on borrowings (see also note 22) and \u00a32.0 million (2025: \u00a30.6 million) was economically hedging interest rates on invoice discounting facilities. The Group\u2019s policy regarding classification of derivatives is set out in note 1. The full fair value of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months. It is classified as a current asset or liability where the remaining maturity of the hedged item is less than 12 months. Cash flow hedges The Group uses cross-currency swap contracts to hedge the foreign currency risk on debt issued by the Group. These are formally designated in cash flow hedge relationships and hedge ineffectiveness is recognised immediately in the income statement. The fair value of cash flow hedges at 31 March 2026 was a net liability of \u00a33.9 million (2025: \u00a311.6 million). Further detail is give in note 22. Fair value hedges The Group maintains cross-currency interest rate swap contracts as fair value hedges of the interest rate and currency risk on fixed-rate debt issued by the Group. These derivative contracts receive a fixed rate of interest and pay a variable rate of interest. These are formally designated in fair value hedging relationships and are used to hedge the exposure to changes in the fair value of debt which has been issued by the Group at fixed rates. The fair value of such hedges at 31 March 2026 was a liability of \u00a316.8 million (2025: \u00a331.4 million). Further detail is give in note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-599": { "value": "Financial assets and liabilities at amortised cost Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie s and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the Group assesses credit risk. Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial liabilities held at amortised cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-593": { "value": "Financial assets and liabilities at amortised cost Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie s and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the Group assesses credit risk. Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial liabilities held at amortised cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-583": { "value": "Financial assets and liabilities at amortised cost Cash and cash equivalents, trade receivables (except trade receivables under factoring arrangements), amounts due from related partie s and other debtors are classified as financial assets held at amortised cost as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, contract assets and lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other financial assets carried at amortised cost, including loans to joint ventures and associates and other debtors, the Group measures the provision at an amount equal to 12-month expected credit losses. See note 22 for further information on how the Group assesses credit risk. Trade creditors, amounts due to related parties, other creditors, accruals and bank loans and overdrafts are classified as financial liabilities held at amortised cost. Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value. The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or liabilities or unrecognised firm commitments. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives that are carried at fair value through profit or loss are recorded in the income statement. Fair value measurement The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the year-end date. Fair value measurements are used on a recurring basis except where used in the acquisition of assets and liabilities through a business combination. The fair values of derivative financial instruments are determined by the use of valuation techniques based on assumptions that are supported by observable market prices or rates. The fair values of non-financial assets and liabilities are based on observable market prices or rates. The carrying values of financial assets and liabilities which are not held at fair value in the Group statement of financial position are assumed to approximate to fair value due to their short-term nature, with the exception of fixed rate bonds. There have been no changes to the valuation techniques used during the year. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-600": { "value": "Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value. The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or liabilities or unrecognised firm commitments. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives that are carried at fair value through profit or loss are recorded in the income statement. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-594": { "value": "Derivative financial instruments Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently remeasured at fair value. The Group designates certain of the derivative instruments within its portfolio to be hedges of the fair value of recognised assets or liabilities or unrecognised firm commitments. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. For derivatives that qualify as cash flow hedges, the effective portion of fair value gains or losses are recognised in other comprehensive income until the underlying transaction is recognised. Any ineffective portion is recognised in the income statement. Changes in the value of derivatives that are carried at fair value through profit or loss are recorded in the income statement. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-595": { "value": "Fair value measurement The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the year-end date. Fair value measurements are used on a recurring basis except where used in the acquisition of assets and liabilities through a business combination. The fair values of derivative financial instruments are determined by the use of valuation techniques based on assumptions that are supported by observable market prices or rates. The fair values of non-financial assets and liabilities are based on observable market prices or rates. The carrying values of financial assets and liabilities which are not held at fair value in the Group statement of financial position are assumed to approximate to fair value due to their short-term nature, with the exception of fixed rate bonds. There have been no changes to the valuation techniques used during the year. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-563": { "value": "Derivative financial instruments and hedging activities The Group enters into forward foreign currency contracts and cross-currency interest rate swaps to hedge the currency exposures that arise on sales, purchases, deposits, borrowings and leasing arrangements denominated in foreign currencies as the transactions occur. Where derivatives do not meet the hedge accounting criteria, they are accounted for at fair value through profit or loss. Derivatives not designated in hedge relationships have a net fair value asset of \u00a314.7 million (2025: net asset of \u00a33.5 million), of which \u00a311.8 million (2025: \u00a32.1 million) were economically hedging \u00a30.9 billion (2025: \u00a31.1 billion) denominated in foreign currencies purchases and sales, \u00a30.9 million (2025: \u00a30.8 million) was economically hedging interest rates on borrowings (see also note 22) and \u00a32.0 million (2025: \u00a30.6 million) was economically hedging interest rates on invoice discounting facilities. The Group\u2019s policy regarding classification of derivatives is set out in note 1. The full fair value of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months. It is classified as a current asset or liability where the remaining maturity of the hedged item is less than 12 months. Cash flow hedges The Group uses cross-currency swap contracts to hedge the foreign currency risk on debt issued by the Group. These are formally designated in cash flow hedge relationships and hedge ineffectiveness is recognised immediately in the income statement. The fair value of cash flow hedges at 31 March 2026 was a net liability of \u00a33.9 million (2025: \u00a311.6 million). Further detail is give in note 22. Fair value hedges The Group maintains cross-currency interest rate swap contracts as fair value hedges of the interest rate and currency risk on fixed-rate debt issued by the Group. These derivative contracts receive a fixed rate of interest and pay a variable rate of interest. These are formally designated in fair value hedging relationships and are used to hedge the exposure to changes in the fair value of debt which has been issued by the Group at fixed rates. The fair value of such hedges at 31 March 2026 was a liability of \u00a316.8 million (2025: \u00a331.4 million). Further detail is give in note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfHedgeAccountingExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-558": { "value": "Derivative financial instruments and hedging activities The Group enters into forward foreign currency contracts and cross-currency interest rate swaps to hedge the currency exposures that arise on sales, purchases, deposits, borrowings and leasing arrangements denominated in foreign currencies as the transactions occur. Where derivatives do not meet the hedge accounting criteria, they are accounted for at fair value through profit or loss. Derivatives not designated in hedge relationships have a net fair value asset of \u00a314.7 million (2025: net asset of \u00a33.5 million), of which \u00a311.8 million (2025: \u00a32.1 million) were economically hedging \u00a30.9 billion (2025: \u00a31.1 billion) denominated in foreign currencies purchases and sales, \u00a30.9 million (2025: \u00a30.8 million) was economically hedging interest rates on borrowings (see also note 22) and \u00a32.0 million (2025: \u00a30.6 million) was economically hedging interest rates on invoice discounting facilities. The Group\u2019s policy regarding classification of derivatives is set out in note 1. The full fair value of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months. It is classified as a current asset or liability where the remaining maturity of the hedged item is less than 12 months. Cash flow hedges The Group uses cross-currency swap contracts to hedge the foreign currency risk on debt issued by the Group. These are formally designated in cash flow hedge relationships and hedge ineffectiveness is recognised immediately in the income statement. The fair value of cash flow hedges at 31 March 2026 was a net liability of \u00a33.9 million (2025: \u00a311.6 million). Further detail is give in note 22. Fair value hedges The Group maintains cross-currency interest rate swap contracts as fair value hedges of the interest rate and currency risk on fixed-rate debt issued by the Group. These derivative contracts receive a fixed rate of interest and pay a variable rate of interest. These are formally designated in fair value hedging relationships and are used to hedge the exposure to changes in the fair value of debt which has been issued by the Group at fixed rates. The fair value of such hedges at 31 March 2026 was a liability of \u00a316.8 million (2025: \u00a331.4 million). Further detail is give in note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-551": { "value": "22. Financial risk management Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates and the Group\u2019s cash and cash equivalents. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
To manage exposure to interest rate fluctuations on borrowings by varying the proportion of fixed rate debt relative to
floating rate debt to reflect the underlying nature of its commitments and obligations. As a result, the Group does not
maintain a speci
fic set proportion of fixed versus floating debt, but monitors the mix to ensure that it is compatible
with its business requirements and capital structure.
Policy
The Group\u2019s interest rate management policy is to monitor the mix of fixed versus floating interest rate debt to ensure
that it is compatible with its business requirements and capital structure.
Risk management
The Group manages interest rate risk through the maintenance of a mixture of fixed and floating rate debt and interest
rate swaps, each being reviewed on a regular basis to ensure the appropriate mix is maintained.
Performance
As
at 31 March
2026
, the Group had 88% fixed rate debt (2025: 90%) and 12% floating rate debt (2025: 10%) based
on gross debt, including lease liabilities, of \u00a31,098.2 million (2025: \u00a31,025.9 million).
The following balances are exposed to interest rate risk as shown below:
31 March 2026
31 March 2025
Between one
Between one
Less than and two Greater than Less than and two Greater than
one year years two years one year years two years
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cash and cash equivalents
739.9
\u2013
\u2013
646.6
\u2013
\u2013
Bank and other borrowings
369.1
516.1
213.0
47.8
339.2
638.9
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Group\u2019s profit before tax is affected through the impact on floating rate borrowings, as follows:
Year ended 31 March 2026
Year ended 31 March 2025
Effect on profit
Effect on profit
Change in before tax Change in before tax
interest rate \u00a3m interest rate \u00a3m
GBP
3.0%
0.3
3.0%
\u2013
EUR
3.0%
3.2
3.0%
2.8
The effect of fair value hedges on the Group\u2019s financial position and performance for the year is as follows:
Year ended 31 March 2026
Year ended 31 March 2025
Change in
fair value of Change in
hedging fair value of
instrument hedging
Carrying used for Carrying instrument used
Notional amount of calculating Notional amount of for calculating
principal hedging hedge principal hedging hedge
Hedging instruments (\u00a3m)
amount instrument ineffectiveness amount instrument ineffectiveness
Cross currency interest rate swap
1
246.7
(16.8)
14.6
246.7
(31.4)
5.3
1. The Group has entered into three cross-currency interest rate swaps to convert \u20ac275 million of fixed rate (1.375%) debt to GBP debt linked to SONIA. This matures on 13 September 2027. Additionally, as part of the Group\u2019s financial risk management response in relation to interest rate risk, the group has entered into further interest rate swaps to fix interest rate on floating rate sterling debt \u2013 ie, the aggregated exposure that was created with \u20ac140 million fixed rate debt and the cross-currency swaps which receive Euro fixed and pay GBP floating. These new interest rate swaps were not designated in the hedge relationship and therefore they are accounted for at fair value through profit and loss.
Year ended 31 March 2026
Year ended 31 March 2025
Amount of
Amount of
Change in ineffectiveness Change in ineffectiveness
Carrying Accumulated fair value used recognised in Carrying Accumulated fair value used recognised in
amount of fair value for calculating the income amount of fair value for calculating the income
Hedged item (\u00a3m)
hedged item adjustments ineffectiveness statement hedged item adjustments ineffectiveness statement
Debt
240.3
9.7
(13.0)
1.6
230.3
12.7
(4.7)
(0.5)
Ineffectiveness is included in the income statement in finance costs. Liquidity risk Liquidity risk is the risk that the Group becomes unable to meet payment obligations in a timely manner when they become due. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective with regards to liquidity risk is to ensure that there is an appropriate balance between
continuity, flexibility and cost of debt funding through the use of borrowings, whilst also diversifying the sources of
these borrowings with a r
ange of maturities and rates of interest, to reflect the long-term nature of the Group\u2019s
contracts and commitments and its risk profile.
Policy
The Group\u2019s policy is to ensure the business is prudently funded and that sufficient liquidity headroom is maintained
on its facilities.
Risk management
Liquidity risk management includes maintaining sufficient cash and the availability of funding from an adequate
amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, Group treasury
maintains flexibility in funding b
y maintaining cash and/or availability under committed credit lines.
Each of the sectors in the Group provides regular cash forecasts for liquidity planning purposes. These cash forecasts
are used to monitor and identify the liquidity requirements of the Group, and to ensure that there is sufficient liquidity
to meet operat
ional needs while maintaining sufficient headroom on the Group\u2019s committed borrowing facilities.
The Group utilises debt factoring in support of the non
-UK operations of its Aviation sector as part of its working
capital management arrangements.
Performance
The Group continues to keep under review its capital structure to ensure that the sources, tenor and availability of
finance are sufficient to meet its stated objectives. No new facilities have been entered into.
The contracted cash outflows on bank and other borrowings, derivatives and lease liabilities at the reporting date are shown below, based on contractual undiscounted payments. Interest payments predominantly relate to repayments on the \u20ac550m Eurobond and the \u00a3300m bond and have been calculated based on the contractual fixed interest rates. Eurobond interest has been translated based on the prevailing exchange rates at the balance sheet date.
Less than
Between
Between
Over
1 year 1 and 2 years 2 and 5 years 5 years Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 31 March 2026
Bank and other borrowings \u2013 repayment of overdraft and loan principal
316.9
471.8
5.1
\u2013
793.8
Bank and other borrowings \u2013 interest payments
9.7
3.4
0.4
\u2013
13.5
Derivatives cash outflows settled gross
464.2
763.1
875.4
30.4
2,133.1
Undiscounted lease payments
66.6
58.9
124.3
131.4
381.2
At 31 March 2025
Bank and other borrowings \u2013 repayment of overdraft and loan principal
0.6
299.8
453.0
\u2013
753.4
Bank and other borrowings \u2013 interest payments
12.5
9.7
3.4
\u2013
25.6
Derivatives cash outflows settled gross
590.7
274.5
897.2
8.4
1,770.8
Undiscounted lease payments
55.5
53.7
106.0
130.0
345.2
The impact of discounting for lease payments is \u00a373.9 million (restated 2025: \u00a370.6 million) resulting in lease liabilities of \u00a3307.3 million (2025: \u00a3274.6 million). Other financial liabilities not included in the table above such as trade and other payables are all expected to be settled within one year. Currency risk Currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when revenue or expense is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries. The functional currency of Babcock International Group PLC and its UK subsidiaries is GBP. The presentation currency of the Group is GBP. The Group has exposure primarily to EUR, ZAR, AUD and CAD. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective is to reduce exposure to volatility in earnings and cash flows from movements in foreign
currency exchange rates. The Group is exposed to a number of foreign currencies, the most significant being the
EUR, ZAR, AUD and CAD.
Policy \u2013
In order to mitigate the currency risk of adverse currency movements on foreign currency denominated
Transactional risk
transactions, the Group\u2019s policy is to hedge all foreign currency transactions greater than \u00a310k, using financial
instruments where appropriate. The Group applies IFRS 9 hedge accounting treatment where appropriate.
Policy
\u2013
The Group is also exposed to adverse foreign currency movements on translation of net assets and income
Translational risk
statements of foreign subsidiaries and joint ventures and associates. It is not the Group\u2019s policy to hedge through the
use of derivatives the translati
on effect of exchange rate movements on the income statements or statement of
financial positions of overseas subsidiaries and joint ventures and associates it regards as long
-term investments.
However, where the Group has material assets denominated in a
foreign currency, it will consider matching the
assets with foreign currency denominated debt.
Risk management
Currency risk management includes hedging the underlying foreign currency exposures in the foreign exchange
market with approved counterparties. Currency transactions are recorded and monitored in the treasury
management system. Each of the sectors in the
Group provides a quarterly foreign currency exposure report to
monitor the level of currency hedge cover is appropriate.
Performance
All material firm transactional exposures are economically hedged using foreign exchange forward contracts.
The effect of cash flow hedges on the Group\u2019s financial position and performance in the year was as follows:
Year ended 31 March 2026
Amount
Change in fair Change in fair reclassified
value used for value recognised from cash Ineffectiveness
calculating in other flow hedge recognised in
Nominal Carrying Hedged hedge comprehensive reserve to profit and loss
Hedging instruments (\u00a3m)
amount value Maturity rate effectiveness income finance cost (finance cost)
Hedge instrument: Cross currency swap
\u20ac275m
(3.9)
13/09/27
1.115
7.7
7.7
(10.0)
\u2013
Hedged item: EUR-denominated debt
\u20ac275m
N/A
13/09/27
N/A
(10.0)
N/A
N/A
N/A
New derivatives executed to hedge purchases and sales in foreign currencies have been treated as economic hedges with the fair value changes recognised in the income statement rather than through other comprehensive income and therefore disclosure has not been provided on such items.
Year ended 31 March 2025
Amount
Change in fair Change in fair reclassified
value used for value recognised from cash Ineffectiveness
calculating in other flow hedge recognised in
Nominal Carrying Hedged hedge comprehensive reserve to profit and loss
Hedging instruments (\u00a3m)
amount value Maturity rate effectiveness income finance cost (finance cost)
Hedge instrument: Cross currency swap
\u20ac275m
(\u00a311.6)
13/09/27
1.115
1.9
(1.9)
4.8
\u2013
Hedged item: EUR-denominated debt
\u20ac275m
N/A
13/09/27
N/A
(4.8)
N/A
N/A
N/A
Year ended 31 March 2026 Year ended 31 March 2025
Effect
Effect
Change in Effect on other Change in Effect on other
foreign on profit components foreign on profit components
currency before tax of equity currency before tax of equity
rate \u00a3m \u00a3m rate \u00a3m \u00a3m
EUR *
5%
(1.6)
(1.6)
5%
(1.0)
(1.0)
ZAR
5%
(1.4)
(1.4)
5%
(1.6)
(1.6)
AUD
5%
(0.3)
(0.3)
5%
(0.3)
(0.3)
CAD
5%
(0.8)
(0.8)
5%
(0.7)
(0.7)
Sensitivity analysis on currency risk has been prepared based on an approximation of reasonably possible changes in foreign exchange rates relative to the Group\u2019s functional and reporting currency. Under the Group\u2019s economic hedging policy, the terms of the forward contracts are arranged to align with the expected timing, currency and amounts of the hedged items. The Group typically enters into forward contracts where the hedge ratio is 1:1 on the basis that the notional amount of the designated hedging instruments matches the principal amount of the forecast foreign currency transaction. Credit risk Credit risk is the risk that a counterparty will not meet its obligations to the Group, which would result in a loss for the Group. Credit risk arises from trade and other receivables, cash and cash equivalents, investments and derivative financial instruments. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective is to ensure that the Group continues to operate with an acceptable level of credit risk, based
on management\u2019s judgement, associated with its operating activities, such as customer trade receivables, and
financial activities, including cash deposits and financial instruments.
Policy
The Group\u2019s policy is to manage credit risk by setting and reviewing appropriate credit limits for non-government
commercial customers, being the Group\u2019s main exposure to credit risk. With regards to financial institutions, credit
limits will be set accord
ing to the respective financial institution\u2019s credit rating. Counterparty bank credit risk is closely
monitored on a systematic and ongoing basis.
Risk management
Credit
risk management includes performing credit checks on non-government commercial customers and setting
and only performing financial transactions with approved investment grade counterparties.
Performance
Expected credit loss on trade receivable portfolio/provisions of \u00a39.1 million (2025: \u00a38.4 million). The carrying amount
of the Group\u2019s financial assets represents the maximum exposure to credit risk.
Cash and cash equivalents and derivative financial instruments The Group utilises approved investment-grade counterparties to carry out treasury transactions, including investments of cash and cash equivalents, with counterparty bank credit risk being monitored closely on a systematic and ongoing basis. A credit limit is allocated to each institution taking account of its market capitalisation and credit rating, and as such credit risk on these counterparties is not considered to be material to the financial statements. The Group\u2019s counterparty credit rating is as follows:
31 March 2026
31 March 2025
AA- or higher
39.6%
14.8%
A+ to A-
55.6%
77.4%
BBB+ to BB-
4.8%
7.8%
Trade receivables The Group\u2019s assessment is that credit risk in relation to customers or sub-contractors to governments is limited as their probability of default is considered to be extremely low. The provision for expected credit losses for receivables from governments and sub-contractors to government customers is therefore considered immaterial in the context of the receivables balance. The Group manages credit risk in relation to trade and other receivables for all non-government commercial customers through various mitigating controls including credit checks, credit limits and ongoing monitoring. Expected credit losses are assessed for all non-government customers, however this is not considered to be material to the financial statements. For trade receivables, contract assets and lease receivables, the Group measures a provision for expected credit losses at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other assets the loss allowance is measured using 12-months expected credit losses unless there was a significant increase in credit risk since initial recognition. Forward-looking factors are applied to homogenous groups of receivables which share characteristics and are based on an estimate of how corporate failure rates may change relative to historic levels given the current economic environment. The Group considers that default has occurred when receivables are more than 90 days overdue and recognises a provision of 100% against all such receivables unless there is evidence of recoverability at the individual receivable level. The movement on the provision for expected credit losses is as follows:
2026
2025
\u00a3m \u00a3m
Balance at 1 April
(8.4)
(8.5)
Charged to the income statement
(2.6)
(1.0)
Unused amounts reversed
0.5
0.3
Disposal of businesses
\u2013
0.6
Receivables written off as uncollectable
1.4
0.1
Exchange differences
\u2013
0.1
Balance at 31 March
(9.1)
(8.4)
The creation and release of provisions for impairment of receivables have been included in operating costs in the income statement. The Group writes off a receivable when there is evidence that the debtor is in significant financial difficulty and there is no realistic prospect of recovery, for example, when a debtor enters bankruptcy or financial reorganisation. The ageing of trade receivables is detailed below:
Year ended 31 March 2026 Year ended 31 March 2025
Gross
Provision
Net
Gross
Provision
Net
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Not past due
249.0
\u2013
249.0
250.0
\u2013
250.0
Up to 90 days overdue
32.7
(0.1)
32.6
29.6
(0.3)
29.3
Past 90 days overdue
34.4
(9.0)
25.4
23.8
(8.1)
15.7
316.1
(9.1)
307.0
303.4
(8.4)
295.0
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above. The Group does not hold any collateral as security other than retention of title clauses issued as part of the ordinary course of business. For contract assets the expected credit loss provision is immaterial as the probability of default is insignificant. No expected loss provision has been recorded in respect of loans to joint ventures and associates. Offsetting financial assets and liabilities
Year ended 31 March 2026 Year ended 31 March 2025
Balance
Amounts not
Net
Balance
Amounts not
Net
sheet
offset
1
balances sheet
offset
1
balances
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Assets
Cash and cash equivalents
739.9
(16.3)
723.6
646.6
(0.1)
646.5
Derivatives
18.7
(18.7)
\u2013
14.4
(14.4)
\u2013
Liabilities
Bank and other borrowings
(16.3)
16.3
\u2013
(0.1)
0.1
\u2013
Derivatives
(24.8)
18.7
(6.1)
(53.9)
14.4
(39.5)
1. The Group has the legal right of offset within certain of its banking arrangements, however there is no intention to net settle these balances shortly after the period end and therefore these have been presented gross in accordance with IAS 32. The Group also has derivative assets and liabilities with the same financial institutions which also have offset language to allow for net settlement, however the Group has no intention to net settle and therefore the IAS 32 criteria are not satisfied and the derivative asset and derivative liabilities have been presented gross in the statement of financial position. Capital risk Capital risk is the risk that the entity may not be able to continue as a going concern. The capital structure of the Group consists of net debt (cash and cash equivalents, bank overdrafts, loans, including the interest rate and foreign exchange derivatives which hedge the loans, lease liabilities, lease receivables and loans to joint ventures and associates) and equity of the Group (comprising issued capital, reserves, retained earnings and non-controlling interests. The Group is not subject to any externally imposed capital requirements. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objectives when managing capital are to safeguard its ability to continue as a going concern, and to
provide returns for shareholders and other stakeholder benefits.
Policy
The Group\u2019s policy is to protect and strengthen the Group statement of financial position through the appropriate
balance of debt and equity funding.
Risk management
The Group manages its capital structure and makes adjustments in response to changes to economic conditions and
the strategic objectives of the Group. The Group raises finance in the public debt market from financial institutions,
using a variety of capital market instruments and borrowing facilities.
Performance
No new facilities have been entered into in the current or prior period nor have any facilities been withdrawn or removed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-532": { "value": "Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates and the Group\u2019s cash and cash equivalents. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
To manage exposure to interest rate fluctuations on borrowings by varying the proportion of fixed rate debt relative to
floating rate debt to reflect the underlying nature of its commitments and obligations. As a result, the Group does not
maintain a speci
fic set proportion of fixed versus floating debt, but monitors the mix to ensure that it is compatible
with its business requirements and capital structure.
Policy
The Group\u2019s interest rate management policy is to monitor the mix of fixed versus floating interest rate debt to ensure
that it is compatible with its business requirements and capital structure.
Risk management
The Group manages interest rate risk through the maintenance of a mixture of fixed and floating rate debt and interest
rate swaps, each being reviewed on a regular basis to ensure the appropriate mix is maintained.
Performance
As
at 31 March
2026
, the Group had 88% fixed rate debt (2025: 90%) and 12% floating rate debt (2025: 10%) based
on gross debt, including lease liabilities, of \u00a31,098.2 million (2025: \u00a31,025.9 million).
The following balances are exposed to interest rate risk as shown below:
31 March 2026
31 March 2025
Between one
Between one
Less than and two Greater than Less than and two Greater than
one year years two years one year years two years
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cash and cash equivalents
739.9
\u2013
\u2013
646.6
\u2013
\u2013
Bank and other borrowings
369.1
516.1
213.0
47.8
339.2
638.9
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Group\u2019s profit before tax is affected through the impact on floating rate borrowings, as follows:
Year ended 31 March 2026
Year ended 31 March 2025
Effect on profit
Effect on profit
Change in before tax Change in before tax
interest rate \u00a3m interest rate \u00a3m
GBP
3.0%
0.3
3.0%
\u2013
EUR
3.0%
3.2
3.0%
2.8
The effect of fair value hedges on the Group\u2019s financial position and performance for the year is as follows:
Year ended 31 March 2026
Year ended 31 March 2025
Change in
fair value of Change in
hedging fair value of
instrument hedging
Carrying used for Carrying instrument used
Notional amount of calculating Notional amount of for calculating
principal hedging hedge principal hedging hedge
Hedging instruments (\u00a3m)
amount instrument ineffectiveness amount instrument ineffectiveness
Cross currency interest rate swap
1
246.7
(16.8)
14.6
246.7
(31.4)
5.3
1. The Group has entered into three cross-currency interest rate swaps to convert \u20ac275 million of fixed rate (1.375%) debt to GBP debt linked to SONIA. This matures on 13 September 2027. Additionally, as part of the Group\u2019s financial risk management response in relation to interest rate risk, the group has entered into further interest rate swaps to fix interest rate on floating rate sterling debt \u2013 ie, the aggregated exposure that was created with \u20ac140 million fixed rate debt and the cross-currency swaps which receive Euro fixed and pay GBP floating. These new interest rate swaps were not designated in the hedge relationship and therefore they are accounted for at fair value through profit and loss.
Year ended 31 March 2026
Year ended 31 March 2025
Amount of
Amount of
Change in ineffectiveness Change in ineffectiveness
Carrying Accumulated fair value used recognised in Carrying Accumulated fair value used recognised in
amount of fair value for calculating the income amount of fair value for calculating the income
Hedged item (\u00a3m)
hedged item adjustments ineffectiveness statement hedged item adjustments ineffectiveness statement
Debt
240.3
9.7
(13.0)
1.6
230.3
12.7
(4.7)
(0.5)
Ineffectiveness is included in the income statement in finance costs. Currency risk Currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when revenue or expense is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries. The functional currency of Babcock International Group PLC and its UK subsidiaries is GBP. The presentation currency of the Group is GBP. The Group has exposure primarily to EUR, ZAR, AUD and CAD. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective is to reduce exposure to volatility in earnings and cash flows from movements in foreign
currency exchange rates. The Group is exposed to a number of foreign currencies, the most significant being the
EUR, ZAR, AUD and CAD.
Policy \u2013
In order to mitigate the currency risk of adverse currency movements on foreign currency denominated
Transactional risk
transactions, the Group\u2019s policy is to hedge all foreign currency transactions greater than \u00a310k, using financial
instruments where appropriate. The Group applies IFRS 9 hedge accounting treatment where appropriate.
Policy
\u2013
The Group is also exposed to adverse foreign currency movements on translation of net assets and income
Translational risk
statements of foreign subsidiaries and joint ventures and associates. It is not the Group\u2019s policy to hedge through the
use of derivatives the translati
on effect of exchange rate movements on the income statements or statement of
financial positions of overseas subsidiaries and joint ventures and associates it regards as long
-term investments.
However, where the Group has material assets denominated in a
foreign currency, it will consider matching the
assets with foreign currency denominated debt.
Risk management
Currency risk management includes hedging the underlying foreign currency exposures in the foreign exchange
market with approved counterparties. Currency transactions are recorded and monitored in the treasury
management system. Each of the sectors in the
Group provides a quarterly foreign currency exposure report to
monitor the level of currency hedge cover is appropriate.
Performance
All material firm transactional exposures are economically hedged using foreign exchange forward contracts.
The effect of cash flow hedges on the Group\u2019s financial position and performance in the year was as follows:
Year ended 31 March 2026
Amount
Change in fair Change in fair reclassified
value used for value recognised from cash Ineffectiveness
calculating in other flow hedge recognised in
Nominal Carrying Hedged hedge comprehensive reserve to profit and loss
Hedging instruments (\u00a3m)
amount value Maturity rate effectiveness income finance cost (finance cost)
Hedge instrument: Cross currency swap
\u20ac275m
(3.9)
13/09/27
1.115
7.7
7.7
(10.0)
\u2013
Hedged item: EUR-denominated debt
\u20ac275m
N/A
13/09/27
N/A
(10.0)
N/A
N/A
N/A
New derivatives executed to hedge purchases and sales in foreign currencies have been treated as economic hedges with the fair value changes recognised in the income statement rather than through other comprehensive income and therefore disclosure has not been provided on such items.
Year ended 31 March 2025
Amount
Change in fair Change in fair reclassified
value used for value recognised from cash Ineffectiveness
calculating in other flow hedge recognised in
Nominal Carrying Hedged hedge comprehensive reserve to profit and loss
Hedging instruments (\u00a3m)
amount value Maturity rate effectiveness income finance cost (finance cost)
Hedge instrument: Cross currency swap
\u20ac275m
(\u00a311.6)
13/09/27
1.115
1.9
(1.9)
4.8
\u2013
Hedged item: EUR-denominated debt
\u20ac275m
N/A
13/09/27
N/A
(4.8)
N/A
N/A
N/A
Year ended 31 March 2026 Year ended 31 March 2025
Effect
Effect
Change in Effect on other Change in Effect on other
foreign on profit components foreign on profit components
currency before tax of equity currency before tax of equity
rate \u00a3m \u00a3m rate \u00a3m \u00a3m
EUR *
5%
(1.6)
(1.6)
5%
(1.0)
(1.0)
ZAR
5%
(1.4)
(1.4)
5%
(1.6)
(1.6)
AUD
5%
(0.3)
(0.3)
5%
(0.3)
(0.3)
CAD
5%
(0.8)
(0.8)
5%
(0.7)
(0.7)
Sensitivity analysis on currency risk has been prepared based on an approximation of reasonably possible changes in foreign exchange rates relative to the Group\u2019s functional and reporting currency. Under the Group\u2019s economic hedging policy, the terms of the forward contracts are arranged to align with the expected timing, currency and amounts of the hedged items. The Group typically enters into forward contracts where the hedge ratio is 1:1 on the basis that the notional amount of the designated hedging instruments matches the principal amount of the forecast foreign currency transaction. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-533": { "value": "Liquidity risk Liquidity risk is the risk that the Group becomes unable to meet payment obligations in a timely manner when they become due. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective with regards to liquidity risk is to ensure that there is an appropriate balance between
continuity, flexibility and cost of debt funding through the use of borrowings, whilst also diversifying the sources of
these borrowings with a r
ange of maturities and rates of interest, to reflect the long-term nature of the Group\u2019s
contracts and commitments and its risk profile.
Policy
The Group\u2019s policy is to ensure the business is prudently funded and that sufficient liquidity headroom is maintained
on its facilities.
Risk management
Liquidity risk management includes maintaining sufficient cash and the availability of funding from an adequate
amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, Group treasury
maintains flexibility in funding b
y maintaining cash and/or availability under committed credit lines.
Each of the sectors in the Group provides regular cash forecasts for liquidity planning purposes. These cash forecasts
are used to monitor and identify the liquidity requirements of the Group, and to ensure that there is sufficient liquidity
to meet operat
ional needs while maintaining sufficient headroom on the Group\u2019s committed borrowing facilities.
The Group utilises debt factoring in support of the non
-UK operations of its Aviation sector as part of its working
capital management arrangements.
Performance
The Group continues to keep under review its capital structure to ensure that the sources, tenor and availability of
finance are sufficient to meet its stated objectives. No new facilities have been entered into.
The contracted cash outflows on bank and other borrowings, derivatives and lease liabilities at the reporting date are shown below, based on contractual undiscounted payments. Interest payments predominantly relate to repayments on the \u20ac550m Eurobond and the \u00a3300m bond and have been calculated based on the contractual fixed interest rates. Eurobond interest has been translated based on the prevailing exchange rates at the balance sheet date.
Less than
Between
Between
Over
1 year 1 and 2 years 2 and 5 years 5 years Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
At 31 March 2026
Bank and other borrowings \u2013 repayment of overdraft and loan principal
316.9
471.8
5.1
\u2013
793.8
Bank and other borrowings \u2013 interest payments
9.7
3.4
0.4
\u2013
13.5
Derivatives cash outflows settled gross
464.2
763.1
875.4
30.4
2,133.1
Undiscounted lease payments
66.6
58.9
124.3
131.4
381.2
At 31 March 2025
Bank and other borrowings \u2013 repayment of overdraft and loan principal
0.6
299.8
453.0
\u2013
753.4
Bank and other borrowings \u2013 interest payments
12.5
9.7
3.4
\u2013
25.6
Derivatives cash outflows settled gross
590.7
274.5
897.2
8.4
1,770.8
Undiscounted lease payments
55.5
53.7
106.0
130.0
345.2
The impact of discounting for lease payments is \u00a373.9 million (restated 2025: \u00a370.6 million) resulting in lease liabilities of \u00a3307.3 million (2025: \u00a3274.6 million). Other financial liabilities not included in the table above such as trade and other payables are all expected to be settled within one year. ", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-534": { "value": "Credit risk Credit risk is the risk that a counterparty will not meet its obligations to the Group, which would result in a loss for the Group. Credit risk arises from trade and other receivables, cash and cash equivalents, investments and derivative financial instruments. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objective is to ensure that the Group continues to operate with an acceptable level of credit risk, based
on management\u2019s judgement, associated with its operating activities, such as customer trade receivables, and
financial activities, including cash deposits and financial instruments.
Policy
The Group\u2019s policy is to manage credit risk by setting and reviewing appropriate credit limits for non-government
commercial customers, being the Group\u2019s main exposure to credit risk. With regards to financial institutions, credit
limits will be set accord
ing to the respective financial institution\u2019s credit rating. Counterparty bank credit risk is closely
monitored on a systematic and ongoing basis.
Risk management
Credit
risk management includes performing credit checks on non-government commercial customers and setting
and only performing financial transactions with approved investment grade counterparties.
Performance
Expected credit loss on trade receivable portfolio/provisions of \u00a39.1 million (2025: \u00a38.4 million). The carrying amount
of the Group\u2019s financial assets represents the maximum exposure to credit risk.
Cash and cash equivalents and derivative financial instruments The Group utilises approved investment-grade counterparties to carry out treasury transactions, including investments of cash and cash equivalents, with counterparty bank credit risk being monitored closely on a systematic and ongoing basis. A credit limit is allocated to each institution taking account of its market capitalisation and credit rating, and as such credit risk on these counterparties is not considered to be material to the financial statements. The Group\u2019s counterparty credit rating is as follows:
31 March 2026
31 March 2025
AA- or higher
39.6%
14.8%
A+ to A-
55.6%
77.4%
BBB+ to BB-
4.8%
7.8%
Trade receivables The Group\u2019s assessment is that credit risk in relation to customers or sub-contractors to governments is limited as their probability of default is considered to be extremely low. The provision for expected credit losses for receivables from governments and sub-contractors to government customers is therefore considered immaterial in the context of the receivables balance. The Group manages credit risk in relation to trade and other receivables for all non-government commercial customers through various mitigating controls including credit checks, credit limits and ongoing monitoring. Expected credit losses are assessed for all non-government customers, however this is not considered to be material to the financial statements. For trade receivables, contract assets and lease receivables, the Group measures a provision for expected credit losses at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. For all other assets the loss allowance is measured using 12-months expected credit losses unless there was a significant increase in credit risk since initial recognition. Forward-looking factors are applied to homogenous groups of receivables which share characteristics and are based on an estimate of how corporate failure rates may change relative to historic levels given the current economic environment. The Group considers that default has occurred when receivables are more than 90 days overdue and recognises a provision of 100% against all such receivables unless there is evidence of recoverability at the individual receivable level. The movement on the provision for expected credit losses is as follows:
2026
2025
\u00a3m \u00a3m
Balance at 1 April
(8.4)
(8.5)
Charged to the income statement
(2.6)
(1.0)
Unused amounts reversed
0.5
0.3
Disposal of businesses
\u2013
0.6
Receivables written off as uncollectable
1.4
0.1
Exchange differences
\u2013
0.1
Balance at 31 March
(9.1)
(8.4)
The creation and release of provisions for impairment of receivables have been included in operating costs in the income statement. The Group writes off a receivable when there is evidence that the debtor is in significant financial difficulty and there is no realistic prospect of recovery, for example, when a debtor enters bankruptcy or financial reorganisation. The ageing of trade receivables is detailed below:
Year ended 31 March 2026 Year ended 31 March 2025
Gross
Provision
Net
Gross
Provision
Net
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Not past due
249.0
\u2013
249.0
250.0
\u2013
250.0
Up to 90 days overdue
32.7
(0.1)
32.6
29.6
(0.3)
29.3
Past 90 days overdue
34.4
(9.0)
25.4
23.8
(8.1)
15.7
316.1
(9.1)
307.0
303.4
(8.4)
295.0
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above. The Group does not hold any collateral as security other than retention of title clauses issued as part of the ordinary course of business. For contract assets the expected credit loss provision is immaterial as the probability of default is insignificant. No expected loss provision has been recorded in respect of loans to joint ventures and associates. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-564": { "value": "Offsetting financial assets and liabilities
Year ended 31 March 2026 Year ended 31 March 2025
Balance
Amounts not
Net
Balance
Amounts not
Net
sheet
offset
1
balances sheet
offset
1
balances
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Assets
Cash and cash equivalents
739.9
(16.3)
723.6
646.6
(0.1)
646.5
Derivatives
18.7
(18.7)
\u2013
14.4
(14.4)
\u2013
Liabilities
Bank and other borrowings
(16.3)
16.3
\u2013
(0.1)
0.1
\u2013
Derivatives
(24.8)
18.7
(6.1)
(53.9)
14.4
(39.5)
1. The Group has the legal right of offset within certain of its banking arrangements, however there is no intention to net settle these balances shortly after the period end and therefore these have been presented gross in accordance with IAS 32. The Group also has derivative assets and liabilities with the same financial institutions which also have offset language to allow for net settlement, however the Group has no intention to net settle and therefore the IAS 32 criteria are not satisfied and the derivative asset and derivative liabilities have been presented gross in the statement of financial position. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOffsettingOfFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-559": { "value": "Offsetting financial assets and liabilities
Year ended 31 March 2026 Year ended 31 March 2025
Balance
Amounts not
Net
Balance
Amounts not
Net
sheet
offset
1
balances sheet
offset
1
balances
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Assets
Cash and cash equivalents
739.9
(16.3)
723.6
646.6
(0.1)
646.5
Derivatives
18.7
(18.7)
\u2013
14.4
(14.4)
\u2013
Liabilities
Bank and other borrowings
(16.3)
16.3
\u2013
(0.1)
0.1
\u2013
Derivatives
(24.8)
18.7
(6.1)
(53.9)
14.4
(39.5)
1. The Group has the legal right of offset within certain of its banking arrangements, however there is no intention to net settle these balances shortly after the period end and therefore these have been presented gross in accordance with IAS 32. The Group also has derivative assets and liabilities with the same financial institutions which also have offset language to allow for net settlement, however the Group has no intention to net settle and therefore the IAS 32 criteria are not satisfied and the derivative asset and derivative liabilities have been presented gross in the statement of financial position. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOffsettingOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-535": { "value": "Offsetting financial assets and liabilities
Year ended 31 March 2026 Year ended 31 March 2025
Balance
Amounts not
Net
Balance
Amounts not
Net
sheet
offset
1
balances sheet
offset
1
balances
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Assets
Cash and cash equivalents
739.9
(16.3)
723.6
646.6
(0.1)
646.5
Derivatives
18.7
(18.7)
\u2013
14.4
(14.4)
\u2013
Liabilities
Bank and other borrowings
(16.3)
16.3
\u2013
(0.1)
0.1
\u2013
Derivatives
(24.8)
18.7
(6.1)
(53.9)
14.4
(39.5)
1. The Group has the legal right of offset within certain of its banking arrangements, however there is no intention to net settle these balances shortly after the period end and therefore these have been presented gross in accordance with IAS 32. The Group also has derivative assets and liabilities with the same financial institutions which also have offset language to allow for net settlement, however the Group has no intention to net settle and therefore the IAS 32 criteria are not satisfied and the derivative asset and derivative liabilities have been presented gross in the statement of financial position. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-536": { "value": "Capital risk Capital risk is the risk that the entity may not be able to continue as a going concern. The capital structure of the Group consists of net debt (cash and cash equivalents, bank overdrafts, loans, including the interest rate and foreign exchange derivatives which hedge the loans, lease liabilities, lease receivables and loans to joint ventures and associates) and equity of the Group (comprising issued capital, reserves, retained earnings and non-controlling interests. The Group is not subject to any externally imposed capital requirements. The Group\u2019s risk management objective, policy and performance are as follows:
Objective
The Group\u2019s objectives when managing capital are to safeguard its ability to continue as a going concern, and to
provide returns for shareholders and other stakeholder benefits.
Policy
The Group\u2019s policy is to protect and strengthen the Group statement of financial position through the appropriate
balance of debt and equity funding.
Risk management
The Group manages its capital structure and makes adjustments in response to changes to economic conditions and
the strategic objectives of the Group. The Group raises finance in the public debt market from financial institutions,
using a variety of capital market instruments and borrowing facilities.
Performance
No new facilities have been entered into in the current or prior period nor have any facilities been withdrawn or removed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-504": { "value": "
23. Share capital
Ordinary shares of
60p Total
Number \u00a3m
Allotted, issued and fully paid
At 1 April 2025 and 31 March 2026
505,596,597
303.4
Allotted, issued and fully paid
At 1 April 2024 and 31 March 2025
505,596,597
303.4
Potential issues of ordinary shares \u2013 executive share plans
The table below shows conditional share awards existing over the Company\u2019s shares as at 31 March 2026 that are capable of being met on
exercise or vesting by the issue of new shares. They represent outstanding awards granted under the Company\u2019s executive share plans.
The awards were granted directly by the Company and satisfied by the Trustees of the Babcock Employee Share Trust (\u2018BEST\u2019) \u2013 a total of
9,144,211 shares (2025: 11,624,363 shares). The Company decides from time to time whether to satisfy the awards by way of a fresh issue
of shares (either to the award holder or to the employee share trust) or by way of financing the employee share trusts to purchase already
issued shares in the market. This decision is made according to available headroom within the dilution limits contained in the relevant share
plan rules and what the Directors consider to be in the best interest of the Company at the time.
2026
2025
Grant date
Type
Exercise period
Number Number - restated
1 December 2020
PSP
1
01/12/2025 \u2013 01/12/2026
\u2013
318,585
1 December 2020
PSP
1
01/12/2023 \u2013 01/12/2024
\u2013
9,089
24 September 2021
PSP
1
24/09/2024
\u2013 24/09/2025
\u2013
224,829
24 September 2021
PSP
1
24/09/2026 \u2013 24/09/2027
80,948
80,948
1 August 2022
DBP
2
01/08/2025 \u2013 01/08/2026
28,548
218,895
1 August 2022
PSP
1
01/08/2025 \u2013 01/08/2026
211,805
1,841,596
1 August 2022
PSP
1
01/08/2027 \u2013 01/08/2028
49,476
1,328,136
1 August 2023
PSP
1
01/08/2026 \u2013 01/08/2027
2,402,124
2,606,362
1 August 2023
DBP
2
01/08/2026 \u2013 01/08/2027
129,095
129,095
1 August 2023
DBP
3
01/08/2024 \u2013 01/08/2025
\u2013
27,212
1 August 2023
PSP
1
01/08/2028 \u2013 01/08/2029
24,549
24,549
29 September 2023
PSP
1
29/09/2028 \u2013 29/09/2029
900,607
900,607
15 December 2023
PSP
1
15/12/2025 \u2013 15/12/2026
\u2013
42,077
15 December 2023
PSP
1
15/12/2026 \u2013 15/12/2027
145,199
175,643
1 August 2024
DBP
2
01/08/2027 \u2013 01/08/2028
93,254
93,254
1 August 2024
DBP
3
01/08/2025 \u2013 01/08/2026
23,823
142,343
1 August 2024
PSP
1
02/12/2027 \u2013 02/12/2028
3,084,641
3,364,295
1 August 2024
PSP
1
02/12/2027 \u2013 02/12/2030
\u2013
15,634
2 December 2024
PSP
1
02/12/2025 \u2013 02/12/2026
\u2013
4,860
2 December 2024
PSP
1
02/12/2026 \u2013 02/12/2027
14,582
14,582
2 December 2024
PSP
1
02/12/2027 \u2013 02/12/2028
61,772
61,772
7 July 2025
DBP
3
07/07/2026 - 07/07/2027
139,512
\u2013
7 July 2025
DBP
3
07/07/2028 - 07/07/2029
83,188
\u2013
7 July 2025
PSP
1
07/07/2028 - 07/07/2029
854,448
\u2013
29 September 2025
PSP
1
29/09/2028 - 29/09/2029
770,928
\u2013
15 December 2025
PSP
1
15/12/2028 - 15/12/2029
45,712
\u2013
9,144,211
11,624,363
2025 figures have been restated to move 574,128 shares incorrectly classified between PSP 1 year and PSP 3 year within the 1 August 2023
awards and 54,183 of shares incorrectly classified between PSP 1 year and PSP 3 year in the 15 December 2023 awards.
Options granted to Directors are summarised in the Remuneration report on pages 150 to 153 and are included in the outstanding options set
out above.
1. 2019 Performance Share Plan (\u2018PSP\u2019).
2. DBP \u2013 Award has a three-year vesting period.
3. DBP \u2013 Award has a one-year vesting period.
Potential issues of ordinary shares \u2013 colleague share plans The table below shows conditional share awards existing over the Company\u2019s shares as at 31 March 2026 that are capable of being met on exercise or vesting by the issue of new shares. They represent outstanding awards granted under Babcock\u2019s Colleague Share Plan plans. The awards were granted directly by the Company and satisfied by shares held in trust by MUFG \u2013 a total of 749,041 shares (2025: zero shares). The Company decides from time to time whether to satisfy the awards by way of a fresh issue of shares or by way of transfer of shares purchase in the market into Treasury shares. This decision is made according to available headroom within the dilution limits contained in the relevant share plan rules and what the Directors consider to be in the best interest of the Company at the time.
2026
2025
Grant date
Type
Exercise period
Number Number
20 August 2025
Colleague Share Plan
20/08/2028
749,041
\u2013
749,041
\u2013
A reconciliation of all PSP, DBP and Colleague Share Plan movements is shown below:
31 March 2026
31 March 2025
Number
Number
\u2019000 \u2019000
Outstanding at 1 April
11,624
12,491
Granted
2,782
4,095
Exercised
(3,845)
(3,917)
Forfeited/lapsed
(668)
(1,045)
Outstanding at 31 March
9,893
11,624
Exercisable at 31 March
212
261
The weighted average share price for awards exercised during the year was 1,018p per share (2025: 514.8p per share). The weighted average fair value of awards granted in the year was 1,092p per share (2025: 497.1p per share) Transactions in own shares Shares held by the Babcock Employee Share Trust (\u2018BEST\u2019) In previous periods, the Group has financed the BEST to purchase already issued shares in the market with these shares being utilised to satisfy outstanding awards under the PSP and the DBP as such awards vest and are exercised. As the Babcock Employee Share Trust is consolidated in the Group\u2019s financial statement, acquisition of shares by the Trust are accounted in the Group consolidated accounts consistent with Treasury shares with the cost of acquisition deducted from equity. Treasury shares In the reporting period, the Group announced a \u00a3200 million share buyback exercise which has resulted in shares being acquired as Treasury shares. These shares are held by the Group directly rather than through the Trust. Own shares acquired as Treasury shares are recorded at cost and deducted from equity. Shares are purchased on the open market through brokers with subsequent cash settlement resulting in a timing difference between the cost recognised through equity and the amount recognised in the cash flow statement as at 31 March 2026 with the difference held in other creditors and accruals. Treasury shares are, periodically, transferred to the BEST for the purpose of being used to satisfy the Group\u2019s executive share plans and to MUFG to satisfy the Colleague Share Plan. In accordance with UK company law, as shares are issued from the Trust to employees, the amount acquired is recycled from Treasury Shares to Retained Earnings at the weighted average price of shares held in treasury at the point of transfer. A separate Treasure Shares reserve is not shown in the Group\u2019s Statement of Financial Position or Statement of Changes in Equity and instead is recorded as part of Retained Earnings.
Year ended 31 March 2026 Year ended 31 March 2025
Total cost
Total cost
Treasury shares
# of shares
\u00a3m
# of shares
\u00a3m
Shares in treasury as at 1 April
\u2013
\u2013
\u2013
\u2013
Own shares purchased
12,543,295
152.6
\u2013
\u2013
Shares transferred to BEST
(1,100,000)
(12.2)
\u2013
\u2013
Shares transferred to MUFG
(702,960)
(7.4)
\u2013
\u2013
Shares remaining in Treasury as at 31 March
10,740,335
133.0
\u2013
\u2013
Treasury shares held have a nominal value of \u00a36.4 million (2025: \u00a3nil) and a total market value of \u00a3124.4 million (2025: \u00a3nil) representing
2.12% (2025: 0%) of the issued share capital at that date. The Company does not pay dividends on Treasury shares.
The table below shows shares held by the trustees of the BEST in order to meet future executive share plan awards.
Year ended 31 March 2026
Year ended 31 March 2025
Total cost
Total cost
Shares held by BEST
# of shares
\u00a3m
# of shares
\u00a3m
Shares in BEST as at 1 April
1,196,571
7.6
1,872,433
5.6
Own shares purchased
1,846,399
16.7
3,267,012
18.8
Shares transferred from treasury shares
1,100,000
12.2
\u2013
\u2013
Shares issued to satisfy employee share plans
(3,837,620)
(33.4)
(3,942,874)
(16.8)
Shares remaining as at 31 March
305,350
3.1
1,196,571
7.6
Shares held by the trust have a nominal value of \u00a3183,210 (2025: \u00a3717,943) and a total market value of \u00a33,535,953 (2025: \u00a38,663,174)
representing 0.06% (2025: 0.24%) of the issued share capital at that date. The Company did not pay dividends to the Trust during the year.
The Company meets the operating expenses of the Trust.
The Trust enables shares In the Company to be held or purchased and made available to employees through the exercise of rights or
pursuant to awards made under the Company\u2019s employee share scheme. The Trust is a discretionary settlement for the benefit of employees
within the Group. The Company is excluded from benefitting under it. It is controlled and managed outside the UK and has a single corporate
trustee which is an independent trustee services organisation. The right to remove and appoint the trustees rests ultimately with the
Company. The trustee of the Trust is required to waive both voting rights and dividends payable on any share in the Company in excess of
0.001p, unless otherwise directed by the Company.
The table below shows shares already held by MUFG in order to meet future awards arising from the Colleague Share Plan.
Year ended 31 March 2026
Year ended 31 March 2025
Total cost
Total cost
Shares held by MUFG
# of shares \u00a3m # of shares \u00a3m
Shares held as at 1 April
\u2013
\u2013
\u2013
\u2013
Shares transferred from treasury shares
702,960
7.4
\u2013
\u2013
Shares issued to satisfy employee share plans
(8,613)
(0.1)
\u2013
\u2013
Shares remaining as at 31 March
694,347
7.3
\u2013
\u2013
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-537": { "value": "23. Share capital
Ordinary shares of
60p Total
Number \u00a3m
Allotted, issued and fully paid
At 1 April 2025 and 31 March 2026
505,596,597
303.4
Allotted, issued and fully paid
At 1 April 2024 and 31 March 2025
505,596,597
303.4
Potential issues of ordinary shares \u2013 executive share plans The table below shows conditional share awards existing over the Company\u2019s shares as at 31 March 2026 that are capable of being met on exercise or vesting by the issue of new shares. They represent outstanding awards granted under the Company\u2019s executive share plans. The awards were granted directly by the Company and satisfied by the Trustees of the Babcock Employee Share Trust (\u2018BEST\u2019) \u2013 a total of 9,144,211 shares (2025: 11,624,363 shares). The Company decides from time to time whether to satisfy the awards by way of a fresh issue of shares (either to the award holder or to the employee share trust) or by way of financing the employee share trusts to purchase already issued shares in the market. This decision is made according to available headroom within the dilution limits contained in the relevant share plan rules and what the Directors consider to be in the best interest of the Company at the time.
2026
2025
Grant date
Type
Exercise period
Number Number - restated
1 December 2020
PSP
1
01/12/2025 \u2013 01/12/2026
\u2013
318,585
1 December 2020
PSP
1
01/12/2023 \u2013 01/12/2024
\u2013
9,089
24 September 2021
PSP
1
24/09/2024
\u2013 24/09/2025
\u2013
224,829
24 September 2021
PSP
1
24/09/2026 \u2013 24/09/2027
80,948
80,948
1 August 2022
DBP
2
01/08/2025 \u2013 01/08/2026
28,548
218,895
1 August 2022
PSP
1
01/08/2025 \u2013 01/08/2026
211,805
1,841,596
1 August 2022
PSP
1
01/08/2027 \u2013 01/08/2028
49,476
1,328,136
1 August 2023
PSP
1
01/08/2026 \u2013 01/08/2027
2,402,124
2,606,362
1 August 2023
DBP
2
01/08/2026 \u2013 01/08/2027
129,095
129,095
1 August 2023
DBP
3
01/08/2024 \u2013 01/08/2025
\u2013
27,212
1 August 2023
PSP
1
01/08/2028 \u2013 01/08/2029
24,549
24,549
29 September 2023
PSP
1
29/09/2028 \u2013 29/09/2029
900,607
900,607
15 December 2023
PSP
1
15/12/2025 \u2013 15/12/2026
\u2013
42,077
15 December 2023
PSP
1
15/12/2026 \u2013 15/12/2027
145,199
175,643
1 August 2024
DBP
2
01/08/2027 \u2013 01/08/2028
93,254
93,254
1 August 2024
DBP
3
01/08/2025 \u2013 01/08/2026
23,823
142,343
1 August 2024
PSP
1
02/12/2027 \u2013 02/12/2028
3,084,641
3,364,295
1 August 2024
PSP
1
02/12/2027 \u2013 02/12/2030
\u2013
15,634
2 December 2024
PSP
1
02/12/2025 \u2013 02/12/2026
\u2013
4,860
2 December 2024
PSP
1
02/12/2026 \u2013 02/12/2027
14,582
14,582
2 December 2024
PSP
1
02/12/2027 \u2013 02/12/2028
61,772
61,772
7 July 2025
DBP
3
07/07/2026 - 07/07/2027
139,512
\u2013
7 July 2025
DBP
3
07/07/2028 - 07/07/2029
83,188
\u2013
7 July 2025
PSP
1
07/07/2028 - 07/07/2029
854,448
\u2013
29 September 2025
PSP
1
29/09/2028 - 29/09/2029
770,928
\u2013
15 December 2025
PSP
1
15/12/2028 - 15/12/2029
45,712
\u2013
9,144,211
11,624,363
2025 figures have been restated to move 574,128 shares incorrectly classified between PSP 1 year and PSP 3 year within the 1 August 2023 awards and 54,183 of shares incorrectly classified between PSP 1 year and PSP 3 year in the 15 December 2023 awards. Options granted to Directors are summarised in the Remuneration report on pages 150 to 153 and are included in the outstanding options set out above. 1. 2019 Performance Share Plan (\u2018PSP\u2019). 2. DBP \u2013 Award has a three-year vesting period. 3. DBP \u2013 Award has a one-year vesting period. Potential issues of ordinary shares \u2013 colleague share plans The table below shows conditional share awards existing over the Company\u2019s shares as at 31 March 2026 that are capable of being met on exercise or vesting by the issue of new shares. They represent outstanding awards granted under Babcock\u2019s Colleague Share Plan plans. The awards were granted directly by the Company and satisfied by shares held in trust by MUFG \u2013 a total of 749,041 shares (2025: zero shares). The Company decides from time to time whether to satisfy the awards by way of a fresh issue of shares or by way of transfer of shares purchase in the market into Treasury shares. This decision is made according to available headroom within the dilution limits contained in the relevant share plan rules and what the Directors consider to be in the best interest of the Company at the time.
2026
2025
Grant date
Type
Exercise period
Number Number
20 August 2025
Colleague Share Plan
20/08/2028
749,041
\u2013
749,041
\u2013
A reconciliation of all PSP, DBP and Colleague Share Plan movements is shown below:
31 March 2026
31 March 2025
Number
Number
\u2019000 \u2019000
Outstanding at 1 April
11,624
12,491
Granted
2,782
4,095
Exercised
(3,845)
(3,917)
Forfeited/lapsed
(668)
(1,045)
Outstanding at 31 March
9,893
11,624
Exercisable at 31 March
212
261
The weighted average share price for awards exercised during the year was 1,018p per share (2025: 514.8p per share). The weighted average fair value of awards granted in the year was 1,092p per share (2025: 497.1p per share) Transactions in own shares Shares held by the Babcock Employee Share Trust (\u2018BEST\u2019) In previous periods, the Group has financed the BEST to purchase already issued shares in the market with these shares being utilised to satisfy outstanding awards under the PSP and the DBP as such awards vest and are exercised. As the Babcock Employee Share Trust is consolidated in the Group\u2019s financial statement, acquisition of shares by the Trust are accounted in the Group consolidated accounts consistent with Treasury shares with the cost of acquisition deducted from equity. Treasury shares In the reporting period, the Group announced a \u00a3200 million share buyback exercise which has resulted in shares being acquired as Treasury shares. These shares are held by the Group directly rather than through the Trust. Own shares acquired as Treasury shares are recorded at cost and deducted from equity. Shares are purchased on the open market through brokers with subsequent cash settlement resulting in a timing difference between the cost recognised through equity and the amount recognised in the cash flow statement as at 31 March 2026 with the difference held in other creditors and accruals. Treasury shares are, periodically, transferred to the BEST for the purpose of being used to satisfy the Group\u2019s executive share plans and to MUFG to satisfy the Colleague Share Plan. In accordance with UK company law, as shares are issued from the Trust to employees, the amount acquired is recycled from Treasury Shares to Retained Earnings at the weighted average price of shares held in treasury at the point of transfer. A separate Treasure Shares reserve is not shown in the Group\u2019s Statement of Financial Position or Statement of Changes in Equity and instead is recorded as part of Retained Earnings.
Year ended 31 March 2026 Year ended 31 March 2025
Total cost
Total cost
Treasury shares
# of shares
\u00a3m
# of shares
\u00a3m
Shares in treasury as at 1 April
\u2013
\u2013
\u2013
\u2013
Own shares purchased
12,543,295
152.6
\u2013
\u2013
Shares transferred to BEST
(1,100,000)
(12.2)
\u2013
\u2013
Shares transferred to MUFG
(702,960)
(7.4)
\u2013
\u2013
Shares remaining in Treasury as at 31 March
10,740,335
133.0
\u2013
\u2013
Treasury shares held have a nominal value of \u00a36.4 million (2025: \u00a3nil) and a total market value of \u00a3124.4 million (2025: \u00a3nil) representing 2.12% (2025: 0%) of the issued share capital at that date. The Company does not pay dividends on Treasury shares. The table below shows shares held by the trustees of the BEST in order to meet future executive share plan awards.
Year ended 31 March 2026
Year ended 31 March 2025
Total cost
Total cost
Shares held by BEST
# of shares
\u00a3m
# of shares
\u00a3m
Shares in BEST as at 1 April
1,196,571
7.6
1,872,433
5.6
Own shares purchased
1,846,399
16.7
3,267,012
18.8
Shares transferred from treasury shares
1,100,000
12.2
\u2013
\u2013
Shares issued to satisfy employee share plans
(3,837,620)
(33.4)
(3,942,874)
(16.8)
Shares remaining as at 31 March
305,350
3.1
1,196,571
7.6
Shares held by the trust have a nominal value of \u00a3183,210 (2025: \u00a3717,943) and a total market value of \u00a33,535,953 (2025: \u00a38,663,174) representing 0.06% (2025: 0.24%) of the issued share capital at that date. The Company did not pay dividends to the Trust during the year. The Company meets the operating expenses of the Trust. The Trust enables shares In the Company to be held or purchased and made available to employees through the exercise of rights or pursuant to awards made under the Company\u2019s employee share scheme. The Trust is a discretionary settlement for the benefit of employees within the Group. The Company is excluded from benefitting under it. It is controlled and managed outside the UK and has a single corporate trustee which is an independent trustee services organisation. The right to remove and appoint the trustees rests ultimately with the Company. The trustee of the Trust is required to waive both voting rights and dividends payable on any share in the Company in excess of 0.001p, unless otherwise directed by the Company. The table below shows shares already held by MUFG in order to meet future awards arising from the Colleague Share Plan.
Year ended 31 March 2026
Year ended 31 March 2025
Total cost
Total cost
Shares held by MUFG
# of shares \u00a3m # of shares \u00a3m
Shares held as at 1 April
\u2013
\u2013
\u2013
\u2013
Shares transferred from treasury shares
702,960
7.4
\u2013
\u2013
Shares issued to satisfy employee share plans
(8,613)
(0.1)
\u2013
\u2013
Shares remaining as at 31 March
694,347
7.3
\u2013
\u2013
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-552": { "value": "Transactions in own shares Shares held by the Babcock Employee Share Trust (\u2018BEST\u2019) In previous periods, the Group has financed the BEST to purchase already issued shares in the market with these shares being utilised to satisfy outstanding awards under the PSP and the DBP as such awards vest and are exercised. As the Babcock Employee Share Trust is consolidated in the Group\u2019s financial statement, acquisition of shares by the Trust are accounted in the Group consolidated accounts consistent with Treasury shares with the cost of acquisition deducted from equity. Treasury shares In the reporting period, the Group announced a \u00a3200 million share buyback exercise which has resulted in shares being acquired as Treasury shares. These shares are held by the Group directly rather than through the Trust. Own shares acquired as Treasury shares are recorded at cost and deducted from equity. Shares are purchased on the open market through brokers with subsequent cash settlement resulting in a timing difference between the cost recognised through equity and the amount recognised in the cash flow statement as at 31 March 2026 with the difference held in other creditors and accruals. Treasury shares are, periodically, transferred to the BEST for the purpose of being used to satisfy the Group\u2019s executive share plans and to MUFG to satisfy the Colleague Share Plan. In accordance with UK company law, as shares are issued from the Trust to employees, the amount acquired is recycled from Treasury Shares to Retained Earnings at the weighted average price of shares held in treasury at the point of transfer. A separate Treasure Shares reserve is not shown in the Group\u2019s Statement of Financial Position or Statement of Changes in Equity and instead is recorded as part of Retained Earnings.
Year ended 31 March 2026 Year ended 31 March 2025
Total cost
Total cost
Treasury shares
# of shares
\u00a3m
# of shares
\u00a3m
Shares in treasury as at 1 April
\u2013
\u2013
\u2013
\u2013
Own shares purchased
12,543,295
152.6
\u2013
\u2013
Shares transferred to BEST
(1,100,000)
(12.2)
\u2013
\u2013
Shares transferred to MUFG
(702,960)
(7.4)
\u2013
\u2013
Shares remaining in Treasury as at 31 March
10,740,335
133.0
\u2013
\u2013
Treasury shares held have a nominal value of \u00a36.4 million (2025: \u00a3nil) and a total market value of \u00a3124.4 million (2025: \u00a3nil) representing 2.12% (2025: 0%) of the issued share capital at that date. The Company does not pay dividends on Treasury shares. ", "dimensions": { "concept": "babcockinternational:DisclosureOfTransactionsInOwnShares", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-584": { "value": "Shares held by the Babcock Employee Share Trust (\u2018BEST\u2019) In previous periods, the Group has financed the BEST to purchase already issued shares in the market with these shares being utilised to satisfy outstanding awards under the PSP and the DBP as such awards vest and are exercised. As the Babcock Employee Share Trust is consolidated in the Group\u2019s financial statement, acquisition of shares by the Trust are accounted in the Group consolidated accounts consistent with Treasury shares with the cost of acquisition deducted from equity. Treasury shares In the reporting period, the Group announced a \u00a3200 million share buyback exercise which has resulted in shares being acquired as Treasury shares. These shares are held by the Group directly rather than through the Trust. Own shares acquired as Treasury shares are recorded at cost and deducted from equity. Shares are purchased on the open market through brokers with subsequent cash settlement resulting in a timing difference between the cost recognised through equity and the amount recognised in the cash flow statement as at 31 March 2026 with the difference held in other creditors and accruals. Treasury shares are, periodically, transferred to the BEST for the purpose of being used to satisfy the Group\u2019s executive share plans and to MUFG to satisfy the Colleague Share Plan. In accordance with UK company law, as shares are issued from the Trust to employees, the amount acquired is recycled from Treasury Shares to Retained Earnings at the weighted average price of shares held in treasury at the point of transfer. A separate Treasure Shares reserve is not shown in the Group\u2019s Statement of Financial Position or Statement of Changes in Equity and instead is recorded as part of Retained Earnings. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-505": { "value": "
24. Share-based payments
For awards which are subject to performance conditions, the charge to the income statement has been based on the assumptions below and
is based on the application of Black Scholes model or on the binomial model as adjusted, allowing for a closed form numerical-integrated
solution, which makes it analogous to the Monte Carlo simulations, including performance conditions as deemed necessary. The detailed
description of the plans below is included within the Remuneration report. For other awards not subject to performance conditions, the
charge is based on the share price on grant issue or modification date.
During the year the total charge relating to employee share-based payment plans was \u00a317.2 million (2025: \u00a314.3 million), all of which related
to equity-settled share-based payment transactions.
After tax, the income statement charge was \u00a312.9 million (2025: \u00a310.7 million).
The fair value per option granted and the assumptions used in the calculation are as follows:
PSP, DBP and CSP
1
Share price at
Expectations of
Fair value per
grant or
meeting
Fair value option \u2013 non-
Options modification Expected
performance criteria \u2013
per option \u2013 market Grant or
awarded date volatility
Option life
non
-market conditions
TSR conditions Correlation modification
Number Pence %
Years
% Pence Pence % date
2025
DBP
139,512
1,101
\u2013
2.0
100.0%
\u2013
1,101
\u2013
07/07/25
2025
DBP
83,188
1,101
\u2013
4.0
100.0%
\u2013
1,101
\u2013
07/07/25
2025
CSP
702,960
980
\u2013
3.0
100.0%
\u2013
980
\u2013
20/08/25
2025
PSP
929,031
1,101
\u2013
4.0
100.0%
\u2013
1,101
\u2013
07/07/25
2025
PSP
45,712
1,259
\u2013
4.0
100.0%
\u2013
1,259
\u2013
15/12/25
2025
PSP
803,271
1,302
32.9%
4.0
100.0%
\u2013
1,167
\u2013
29/09/25
2024
DBP
93,254
523
\u2013
4.0
100.0%
\u2013
523
\u2013
01/08/24
2024
DBP
162,444
523
\u2013
2.0
100.0%
\u2013
523
\u2013
01/08/24
2024
PSP
1,799,822
523
\u2013
4.0
100.0%
\u2013
523
\u2013
01/08/24
2024
PSP
1,887,244
523
31.5%
4.0
100.0%
\u2013
470
\u2013
01/08/24
2024
PSP
70,742
523
31.5%
6.0
100.0%
\u2013
470
\u2013
01/08/24
2024
PSP
61,772
510
\u2013
4.0
100.0%
\u2013
510
\u2013
02/12/24
2024
PSP
4,860
510
\u2013
2.0
100.0%
\u2013
510
\u2013
02/12/24
2024
PSP
14,582
510
\u2013
3.0
100.0%
\u2013
510
\u2013
02/12/24
2023
PSP
1,259,675
371
32.6%
4.0
100.0%
\u2013
334
\u2013
01/08/23
2023
PSP
1,234,901
371
\u2013
4.0
100.0%
\u2013
371
\u2013
01/08/23
2023
PSP
737,280
371
32.6%
6.0
100.0%
\u2013
334
\u2013
01/08/23
2023
PSP
78,571
413
32.0%
6.0
100.0%
\u2013
372
\u2013
29/09/23
2023
PSP
822,036
413
\u2013
6.0
100.0%
\u2013
413
\u2013
29/09/23
2023
PSP
42,077
385
\u2013
3.0
100.0%
\u2013
385
\u2013
15/12/23
2023
PSP
127,553
385
\u2013
4.0
100.0%
\u2013
385
\u2013
15/12/23
2023
PSP
131,707
385
32.0%
6.0
100.0%
\u2013
347
\u2013
15/12/23
2023
DBP
129,095
371
\u2013
4.0
100.0%
\u2013
371
\u2013
01/08/23
2023
DBP
179,247
371
\u2013
2.0
100.0%
\u2013
371
\u2013
01/08/23
2022
PSP
2,302,009
351
19.0%
4.0
100.0%
\u2013
351
\u2013
01/08/22
2022
PSP
613,078
351
19.0%
6.0
100.0%
\u2013
316
\u2013
01/08/22
2022
PSP
806,511
351
19.0%
6.0
100.0%
169
316
55.0%
01/08/22
2022
DBP
218,895
351
19.0%
4.0
100.0%
\u2013
351
\u2013
01/08/22
2022
DBP
551,420
351
19.0%
2.0
100.0%
\u2013
351
\u2013
01/08/22
2021
PSP
769,165
372
19.0%
6.0
100.0%
149
316
55.0%
24/08/21
2021
PSP
626,704
380
19.0%
6.0
100.0%
\u2013
325
\u2013
24/09/21
2021
PSP
1,780,849
380
19.0%
4.0
100.0%
\u2013
380
\u2013
24/09/21
2020
PSP
695,458
350
19.0%
6.0
100.0%
\u2013
305
\u2013
01/12/20
2020
PSP
2,091,247
350
19.0%
4.0
100.0%
\u2013
350
\u2013
01/12/20
2020
PSP
1,341,477
350
19.0%
6.0
100.0%
138
305
55.0%
01/12/20
1. PSP = 2019 Performance Share Plan, DBP = 2022 Deferred Bonus Plan, CSP = Colleague Share Plan.
All awards have an exercise price of \u00a3nil and as such the weighted average exercise price for shares granted, exercised, forfeited and
outstanding are all \u00a3nil.
The vesting period and the expected life of PSP awards are between one and three years. The vesting period and expected life of DBP
awards was one year for awards made in August 2022 and two years for previous, other than for Executives where the vesting period is
three years. The holders of all awards receive dividends. The vesting period for the CSP is three years.
For PSP awards made in December 2020, 2,786,705 were made via the use of restricted shares with a three-year vesting period. There are
no performance conditions attached. A further 1,341,477 awards were made where the performance criteria is 50% against free cash flow
and 50% TSR.
PSP awards made in August 2021 of 769,165 shares include performance criteria weighted to 50% against free cash flow targets and 50%
against TSR performance.
PSP awards made in September 2021 of 2,407,553 shares were made via the use of restricted shares with a three-year vesting period.
There are no performance conditions attached.
For PSP awards made in August 2022, 3,318,343 were made via the use of restricted shares with a three-year vesting period. There are no
performance conditions attached. A further 403,255 awards were made where the performance criteria is 50% against free cash flow and
50% TSR.
For PSP awards made in August to December 2023, 3,611,764 were made via the use of restricted shares with a three-year to five year
vesting period. There are no performance conditions attached. A further 822,036 awards were made where the performance criteria is 30%
against free cash flow, 30% underlying operating margin, 25% organic revenue growth and 15% ESG.
For PSP awards made in August to December 2024, 1,881,036 were made via the use of restricted shares with a three-year to five year
vesting period. There are no performance conditions attached. A further 1,957,986 awards were made where the performance criteria is 30%
against free cash flow, 30% underlying operating margin, 25% organic revenue growth and 15% ESG.
For PSP awards made in July to December 2025, 974,743 were made via the use of restricted shares with a three-year to five year vesting
period. There are no performance conditions attached. A further 803,271 awards were made where the performance criteria is 30% against
free cash flow, 30% underlying operating margin, 25% organic revenue growth and 15% ESG.
There are no performance conditions attached to the DBP or the Colleague Share Plan (\u2018CSP\u2019).
The expected volatility is based on historical volatility over the last one to three years. The expected life is the average expected period to
exercise. The risk-free rate of return is the yield on zero-coupon government bonds of a term consistent with the assumed option life.
The weighted average remaining contractual life for share options outstanding at the end of the period was 2 years.
In addition to the Colleague Share Plan providing employees with free shares during 2025, the Colleague Share Plan allows employees to
contribute up to \u00a3150 per month to the fund, which then purchases shares on the open market on the employees\u2019 behalf. The Group provides
matching shares, purchased on the open market, of one share for every 10 purchased by the employee. During the year the Group bought
53,397 matching shares (2025: 92,641 matching shares) at a cost of \u00a30.4 million (2025: \u00a30.5 million).
The Group also operates the Babcock Colleague Share Plan International (\u2018BCSPI\u2019) which reflects the structure of the UK Plan. During the
year no matching shares were purchased on the open market (2025: no matching shares) and 1,056 matching shares vested (2025: 1,182
matching shares). 1,056 shares were transferred to the BCSPI from the Employee Share Trust leaving a balance of 2,544 matching shares
(2025: 2,544 matching shares).
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-506": { "value": "25. Retirement benefits and liabilities Defined contribution schemes Pension costs for defined contribution schemes are as follows:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Defined contribution schemes
155.4
101.6
Defined benefit schemes Statement of financial position assets and liabilities recognised are as follows:
31 March 2026
31 March 2025
\u00a3m \u00a3m
Retirement benefits \u2013 funds in surplus
77.3
98.8
Retirement benefits \u2013 funds in deficit
(111.3)
(107.2)
(34.0)
(8.4)
The Group operates a number of pension schemes. The schemes are generally funded through payments to trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement as incurred. For defined benefit pension schemes, the cost of providing benefits is determined using the projected unit credit actuarial valuation method. The service cost and associated administration costs of the Group\u2019s pension schemes are charged to operating profit. In addition, a retirement benefit interest charge on the net pension deficit or interest credit on the net pension surplus is included in the income statement as a finance cost or finance income, respectively. Actuarial gains and losses are recognised directly in equity through the statement of comprehensive income so that the Group\u2019s statement of financial position reflects the IAS 19 measurement of the schemes\u2019 surpluses or deficits at the reporting date.
The Group has a number of defined benefit pension schemes. The principal defined benefit pension schemes in the UK are the Devonport
Royal Dockyard Pension Scheme (\u2018DRDPS\u2019), the Babcock International Group Pension Scheme (\u2018BIGPS\u2019) and the Rosyth Royal Dockyard
Pension Scheme (together, \u2018the Principal schemes\u2019). Each of these schemes is predominantly a final salary plan in which future pension
levels are defined relative to number of years\u2019 service and final salary. Retirement age varies by scheme. The nature of these schemes is
that the employees only contribute whilst they are active employees of a scheme, with the employer paying the balance of the cost required.
All principal schemes are closed to future accrual of benefits. The contributions required and the assessment of the assets and the liabilities
that have accrued to members and any deficit recovery payments required are agreed by the Group with the trustees of each scheme who
are advised by independent, qualified actuaries.
The Group also participates in the Babcock Rail Ltd Shared Cost Section of the Railways Pension Scheme (\u2018the Railways scheme\u2019). This scheme
is a multi-employer shared cost scheme with the contributions required, the assessment of the assets and the liabilities that have accrued to
members and any deficit recovery payments all agreed with the trustees who are advised by an independent, qualified actuary. The costs
are, in the first instance, shared such that the active employees contribute 40% of the cost of providing the benefits and the employer
contributes 60%. However, the assumption is that as the active membership reduces, the liability will ultimately revert to the Group, and
as such, it is assumed that the entire cost of the Railways Scheme is met by the Group. The Group\u2019s share of the assets and liabilities is
separately identified to those of other employers in the scheme and therefore the Group cannot be held liable for the obligations of other
entities that participate in the Railways scheme.
Defined benefit scheme risks
Through its defined benefit pension schemes, the Group is exposed to a number of risks, the most notable of which are as follows:
Risk
Mitigation
Asset volatility \u2013 discount rates (determined with reference to
Pension scheme assets are held in a diversified portfolio of assets in order
AA corporate bond yields) are used to determine expected
to minimize risk arising from asset return volatility. Investments are well
returns on plan assets. Asset yields which vary from this
diversified, such that failure of any singular investment would not have a
expected return will result in an increase or decrease in the
material impact on the overall level of assets. The asset investment strategy
overall surplus/deficit.
is agreed following consult
ation between the Group and the plan Trustees.
The Group and the plan Trustees monitor the schemes closely
\u2013 especially
during periods of significant turmoil and will maintain a diversified investment
strategy intended to minimize asset volatility.
Inflation \u2013 the majority of pension scheme obligations are
The plan Trustees asset management policy includes investing in inflation
index
-
linked and therefore exposed to inflation risk. Increasing
hedging assets such as inflation linked bonds to mitigate this risk.
inflation will lead to higher liabilities. Inflation assumptions as
applied to pension obligations are a long
-term assessment of
inflation over
the life of the scheme.
Life expectancy \u2013 the majority of obligations are to provide
The Group monitors the risk of increasing life expectancy and will, from time
benefits for the life of the member and therefore changes in
to time, take out longevity swaps to mitigate this risk
\u2013 the most recent of
life expectancy of the scheme participants will impact the
liability position.
which was in 2009.
Interest rate \u2013 movements in corporate bond yields will result
The trustee\u2019s asset management policy includes investing in bonds and
in a change to the plan liabilities. Similarly, movements in gilt
therefore any impact on change in bond yields on the plan liabilities is
yields in isolation will have an impact on the schemes
partially offset by returns on assets.
funding
positions.
The asset portfolio invests in assets which increase in value as interest rates
decrease and thus the schemes holdings are designed to hedge against
interest rate risk for most of the funded liabilities.
Risk
Mitigation
Salary increases \u2013 changes in long-term salary increases
In 2019,
the Group closed the Babcock International Group Pension Scheme
will impact the final salary position on which pension benefits
to future accrual for some employees but they retained the salary link to their
are determined.
accrued benefits at that time. Subsequently, in September 2024, the salary
link was broken following the scheme closure. The Devonport Royal Dockyard
Pension Scheme was closed to future accrual for all members with effect
from 30 November 2024, with some members opting to break the salary link
in return for a cash sum.
The Rosyth Royal Dockyard Pension Scheme was
closed to future accrual and salary link broken for all employees in 2020.
The defined benefit schemes are prudently funded by payments to legally separate trustee-administered funds. The trustees of each scheme
are required by law to act in the best interests of each scheme\u2019s members. In addition to determining future contribution requirements
(with the agreement of the Group), the trustees are responsible for setting the schemes\u2019 investment strategy (subject to consultation with the
Group). All the schemes have at least one independent trustee and member nominated trustees. The schemes are subject to regulation under
the funding regime set out in Part III of the Pensions Act 2004. The details of the latest formal actuarial valuation of the scheme are as follows
(the actuarial valuations of the Devonport Royal Dockyard Scheme as at 31 March 2023, Rosyth Royal Dockyard Scheme as at 31 March 2024
and the Babcock International Group Scheme as at 31 March 2025 have been completed):
Babcock Rail Ltd
Devonport Babcock Rosyth section of the
Royal Dockyard International Royal Dockyard Railways Pension
Scheme Group Scheme Scheme Scheme
Date of last formal completed actuarial valuation
31/03/2023
31/03/2025
31/03/2024
31/12/2022
Number of active members at above date
1,181
\u2013
\u2013
131
Actuarial valuation method
Projected unit
Projected unit
Projected unit
Attained age
Results of formal actuarial valuation:
Value of assets
\u00a31,330m
\u00a3908m
\u00a3653m
\u00a3262m
Level of funding
92%
107%
89%
100%
The Group also participates in or provides a number of other smaller pension schemes including a number of sections of the local
government pension schemes where in most cases the employer contribution rates are fully reimbursed by the administering authorities.
It also participates in the Magnox Electric Group Section of the Electricity Supply Pension Scheme and runs the Babcock Naval Services
Pension Scheme, which commenced winding up in 2021, and for which the MOD retains liability.
The Group\u2019s cash contribution rates payable to the schemes are expected to be as follows:
Babcock Rail
Babcock Ltd section of
Devonport International Rosyth Royal the Railways
Royal Dockyard Group Dockyard Pension
Scheme Scheme Scheme
Scheme
Other
Total
Future service contribution rate
\u2013
\u2013
\u2013
7.68%
\u2013
\u2013
Future service cash contributions
\u2013
\u2013
\u2013
\u00a30.2m
\u00a32.9m
\u00a33.1m
Deficit contributions
\u00a312.7m
\u2013
\u00a34.5m
\u2013
\u00a30.9m
\u00a318.1m
Additional longevity swap payments
\u00a31.8m
\u2013
\u2013
\u2013
\u2013
\u00a31.8m
Expected employer cash costs for 2026/27
\u00a314.5m
\u2013
\u00a34.5m
\u00a30.2m
\u00a33.8m
\u00a323.0m
Expected salary sacrifice contributions
\u2013
\u2013
\u2013
\u00a30.1m
\u00a30.8m
\u00a30.9m
Expected total employer contributions
\u00a314.5m
\u2013
\u00a34.5m
\u00a30.3m
\u00a34.6m
\u00a323.9m
Where salary sacrifice arrangements are in place, the Group effectively meets the members\u2019 contributions. The above level of funding is
expected to continue until the next actuarial valuation of each scheme is completed; valuations are carried out every three years.
The expected payments from the schemes are primarily pension payments and lump sums. Most of the pensions increase at a fixed rate
or in line with RPI or CPI inflation when in payment. Benefit payments commence at retirement, death or incapacity and are predominantly
calculated with reference to final salary. The levels of deficit contributions reflected above are expected to continue until technical provisions
(self-sufficiency for the Babcock International Group Pension Scheme) funding levels are met either through asset performance or funding.
Although the Group anticipates that scheme surpluses will be utilised during the life of the scheme to address member benefits, the Group
recognises its retirement benefit surpluses in full in respect of schemes in surplus, on the basis that it is management\u2019s judgement that
there are no substantive restrictions on the return of residual scheme assets in the event of a winding-up of the scheme after all member
obligations have been met. The Group also considers that the trustees do not have the power to unilaterally wind-up the schemes or
vary benefits.
Virgin Media Case
The Group is aware of the \u2018Virgin Media v NTL Pension Trustees Ltd and others\u2019 case and that there is a potential for it to have an impact on
the Group\u2019s UK pension schemes. The case affects defined benefit schemes that provided contracted-out benefits before 6 April 2016 based
on meeting the reference scheme test.
Where scheme rules were amended prior to 6 April 2016, potentially impacting benefits accrued from 6 April 1997 to 6 April 2016, schemes
needed the actuary to confirm that the reference scheme test was still being met by providing written confirmation for the purposes of
Section 37 of the Pension Schemes Act 1993. In the Virgin Media case the High Court ruled that alterations to the scheme rules were void
and ineffective because of the absence of written actuarial confirmation required under Section 37 of the Pension Schemes Act 1993.
The case was appealed and, in a judgment delivered in July 2024, the Court of Appeal upheld the High Court's decision.
The Group is aware that a further case has been heard in the High Court in 2025 (judgment in respect of which is still awaited) and that
such case may provide additional clarity on issues related to the Virgin Media case and its implications for certain schemes and relevant
historic amendments.
The Group and the trustees of its defined benefit pension schemes had taken initial advice on the implications of the Virgin Media case for
the Group's defined benefit pension schemes. For one scheme we received confirmation that there is no evidence to conclude that pension
scheme liabilities have been understated as a result of non-compliance with section 37 of the Pension Schemes Act 1993 during the relevant
period. For the other potentially impacted schemes, there was a process to identify areas that may require further investigation, depending on
developing case law and the introduction of legislation on this point.
The Pension Schemes Act 2026 (which gained Royal Assent on 29 April 2026) now includes a so-called legislative solution in relation to this
issue. The Group understands this provides, broadly, for a process for schemes to obtain retrospective actuarial confirmation in relation to
historic benefit changes which (subject to the relevant steps and conditions) could result in the scheme being treated as having met the
requirements of Section 37 of the Pension Schemes Act 1993 in respect of the identified benefit changes.
The next steps for the potentially impacted schemes, which may include the use of the legislative solution, will now be considered in light of
the Pension Schemes Act 2026. The potential impact on the Group is therefore not yet known and continues to be assessed.
The latest full actuarial valuations of the Group\u2019s defined benefit pension schemes have been updated to 31 March 2026 by independent
qualified actuaries for IAS 19 purposes, on a best estimate basis, using the following assumptions:
Babcock Rail
Devonport Ltd section of
Royal Babcock Rosyth Royal the Railways
Dockyard International Dockyard Pension
March 202
6
Scheme Group Scheme Scheme Scheme
Rate of increase in pensionable salaries
3.20%
\u2013
\u2013
0.50%
Rate of increase in pensions (past service)
3.00%
3.25%
3.35%
2.95%
Discount rate
6.00%
5.95%
6.00%
6.10%
Inflation rate (RPI)
3.35%
3.35%
3.35%
3.30%
Inflation rate (CPI)
3.00%
3.00%
3.00%
2.90%
Weighted average duration of cash flows (years)
11
10
11
12
Total life expectancy for current pensioners aged 65 (years) \u2013 male
85.5
86.7
84.9
85.2
Total life expectancy for current pensioners aged 65 (years) \u2013 female
87.4
89.0
86.9
87.3
Total life expectancy for future pensioners currently aged 45 (years) \u2013 male
86.6
87.4
85.9
86.2
Total life expectancy for future pensioners currently aged 45 (years) \u2013 female
88.8
89.9
88.1
88.5
March 202
5
Rate of increase in pensionable salaries
2.90%
\u2013
\u2013
0.50%
Rate of increase in pensions (past service)
2.70%
3.00%
3.10%
2.70%
Discount rate
5.70%
5.70%
5.70%
5.70%
Inflation rate (RPI)
3.10%
3.10%
3.10%
3.10%
Inflation rate (CPI)
2.70%
2.70%
2.70%
2.70%
Weighted average duration of cash flows (years)
11
10
11
12
Total life expectancy for current pensioners aged 65 (years) \u2013 male
85.2
86.1
84.5
84.9
Total life expectancy for current pensioners aged 65 (years) \u2013 female
87.3
88.8
86.8
87.2
Total life expectancy for future pensioners currently aged 45 (years) \u2013 male
86.2
87.1
85.6
85.9
Total life expectancy for future pensioners currently aged 45 (years) \u2013 female
88.5
89.9
88.0
88.4
The fair value of the assets and the present value of the liabilities of the Group pension schemes at 31 March were as follows:
2026
2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Fair value of plan assets
Growth assets
Equities and equity-related derivatives
154.5
9.8
11.3
175.6
56.2
9.5
27.4
93.1
Property funds
145.8
\u2013
3.5
149.3
147.7
0.1
5.1
152.9
High yield bonds/emerging market debt
\u2013
\u2013
6.0
6.0
\u2013
\u2013
0.4
0.4
Absolute return and multi-strategy funds
1.3
107.8
48.5
157.6
1.5
110.7
30.9
143.1
Low-risk assets
Bonds
1,143.6
10.1
33.6
1,187.3
992.6
10.7
52.5
1,055.8
Matching assets*
1,235.1
70.9
75.3
1,381.3
1,513.0
68.5
48.9
1,630.4
Longevity swaps and annuities
(239.4)
\u2013
(10.2)
(249.6)
(234.6)
\u2013
(10.1)
(244.7)
Fair value of assets before impact of asset ceiling
2,440.9
198.6
168.0
2,807.5
2,476.4
199.5
155.1
2,831.0
Impact of IFRIC 14 asset ceiling
\u2013
\u2013
(3.1)
(3.1)
\u2013
\u2013
\u2013
\u2013
Fair value of assets
2,440.9
198.6
164.9
2,804.4
2,476.4
199.5
155.1
2,831.0
Percentage of assets quoted
89%
38%
10%
81%
83%
\u2013
33%
74%
Percentage of assets unquoted
11%
62%
90%
19%
17%
100%
67%
26%
Present value of defined benefit obligations
Active members
\u2013
28.0
71.4
99.4
\u2013
27.4
71.9
99.3
Deferred pensioners
791.3
60.1
27.3
878.7
819.6
58.0
26.3
903.9
Pensioners
1,695.4
118.0
46.9
1,860.3
1,668.5
125.7
42.0
1,836.2
Total defined benefit obligations
2,486.7
206.1
145.6
2,838.4
2,488.1
211.1
140.2
2,839.4
Net
(liabilities)/assets recognised in the
statement of financial position
(45.8)
(7.5)
19.3
(34.0)
(11.7)
(11.6)
14.9
(8.4)
* The matching assets for the Babcock International Group Pension Scheme, Devonport Royal Dockyard Pension Scheme and Rosyth Royal Dockyard
Pension Scheme primarily comprise a \u201cLiability Driven Investment\u201d portfolio for each scheme, which invest in gilts, Network Rail bonds, gilt
repurchase agreements, interest rate and inflation swaps, asset swaps and cash, on a segregated basis. For the Babcock International Group
Pension Scheme and the Devonport Royal Dockyard Pension Scheme, there are also investments in investment grade credit, via both segregated
portfolios and pooled investment vehicles. The various segregated portfolios and pooled investment vehicle each utilise derivative contracts. The
Trustee has authorised the use of derivatives by the investment managers for efficient portfolio management purposes including to reduce certain
investment risks such as interest rate risk and inflation risk. The principal investment in derivatives is gilt repurchase agreements, interest rate and
inflation swaps in the matching portfolios; total return swaps in the return seeking portfolios. These derivatives are included within the matching
assets and equities classifications. The matching assets category includes gross assets of \u00a32,490 million (2025: \u00a32,605 million) and associated
repurchase agreement liabilities of \u00a31,255 million (2025: \u00a31,092 million). Repurchase agreements are entered into with counterparties to better offset
the scheme\u2019s exposures to interest and inflation rates, whilst remaining invested in assets of a similar risk profile.
The schemes do not invest directly in assets or shares of the Group.
The longevity swaps have been valued in line with assumptions that are consistent with the requirements of IFRS 13 using Level 3 inputs.
The key inputs to the valuation are the discount rate and mortality assumptions.
Amounts recorded in the Group income statement
2026 2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Current service cost
\u2013
\u2013
3.4
3.4
7.9
0.1
3.1
11.1
Incurred expenses
3.9
0.2
0.8
4.9
6.1
0.4
0.3
6.8
Past service cost
\u2013
\u2013
\u2013
\u2013
(1.2)
\u2013
\u2013
(1.2)
Total included within operating profit
3.9
0.2
4.2
8.3
12.8
0.5
3.4
16.7
Net interest cost/(credit)
\u2013
0.6
(1.0)
(0.4)
5.1
0.1
(0.7)
4.5
Total included within income statement
3.9
0.8
3.2
7.9
17.9
0.6
2.7
21.2
Amounts recorded in the Group statement of comprehensive income
Year ended 31 March 2026 Year ended 31 March 2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Actual return less interest on pension
scheme assets
(17.5)
2.0
3.7
(11.8)
(239.8)
(34.8)
(18.0)
(292.6)
Experience losses arising on scheme liabilities
(24.4)
(1.0)
(3.6)
(29.0)
(9.4)
(0.5)
(1.9)
(11.8)
Changes in assumptions on scheme liabilities
(13.3)
3.7
4.1
(5.5)
276.4
26.1
17.4
319.9
Asset ceiling restriction
\u2013
\u2013
(3.1)
(3.1)
\u2013
\u2013
\u2013
\u2013
At 31 March
(55.2)
4.7
1.1
(49.4)
27.2
(9.2)
(2.5)
15.5
Analysis of movement in the Group statement of financial position
Year ended 31 March 2026
Year ended 31 March 2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Fair value of plan assets
At 1 April
2,476.4
199.5
155.1
2,831.0
2,739.0
235.1
110.2
3,084.3
Interest on assets
136.9
11.0
9.0
156.9
124.4
11.0
6.7
142.1
Actuarial loss on assets
(17.5)
2.0
3.7
(11.8)
(239.8)
(34.8)
(18.0)
(292.6)
Employer contributions
25.0
0.2
6.5
31.7
99.7
0.5
6.8
107.0
Employee contributions
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
Benefits paid
(179.9)
(14.1)
(6.3)
(200.3)
(192.0)
(12.3)
(5.5)
(209.8)
Settlements
\u2013
\u2013
\u2013
\u2013
(54.9)
\u2013
54.9
\u2013
At 31 March
2,440.9
198.6
168.0
2,807.5
2,476.4
199.5
155.1
2,831.0
Impact of IFRIC 14 asset ceiling
\u2013
\u2013
(3.1)
(3.1)
\u2013
\u2013
\u2013
\u2013
Fair value of assets
2,440.9
198.6
164.9
2,804.4
2,476.4
199.5
155.1
2,831.0
Present value of benefit obligations
At 1 April
2,488.1
211.1
140.2
2,839.4
2,856.2
237.4
100.4
3,194.0
Current service cost
\u2013
\u2013
3.4
3.4
7.9
0.1
3.1
11.1
Incurred expenses
3.9
0.2
0.8
4.9
6.1
0.4
0.3
6.8
Past service cost
\u2013
\u2013
\u2013
\u2013
(1.2)
\u2013
\u2013
(1.2)
Interest cost
136.9
11.6
8.0
156.5
129.5
11.1
6.0
146.6
Employee contributions
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
Experience loss
24.4
1.0
3.6
29.0
9.4
0.5
1.9
11.8
Actuarial loss/(gain) \u2013 demographics
36.7
1.0
(0.7)
37.0
(4.0)
(0.4)
(0.3)
(4.7)
Actuarial gain \u2013 financial
(23.4)
(4.7)
(3.4)
(31.5)
(272.4)
(25.7)
(17.1)
(315.2)
Benefits paid
(179.9)
(14.1)
(6.3)
(200.3)
(192.0)
(12.3)
(5.5)
(209.8)
Settlements
\u2013
\u2013
\u2013
\u2013
(51.4)
\u2013
51.4
\u2013
At 31 March
2,486.7
206.1
145.6
2,838.4
2,488.1
211.1
140.2
2,839.4
Net (deficit)/surplus at 31 March
(45.8)
(7.5)
19.3
(34.0)
(11.7)
(11.6)
14.9
(8.4)
The movement in net deficits for the year ended 31 March 2026 is as a result of the movement in assets and liabilities shown above. The
disclosures below relate to post-retirement benefit schemes which are accounted for as defined benefit schemes in accordance with IAS 19.
The changes to the Group statement of financial position at 31 March 2026 and the changes to the Group income statement for the year to
March 2027, if the assumptions were sensitised by the amounts below, would be:
Defined benefit
obligations Income
2026 statement 2027
\u00a3m \u00a3m
Initial assumptions
2,838.4
8.8
Discount rate assumptions increased by 0.5%
(144.7)
(9.6)
Discount rate assumptions decreased by 0.5%
159.0
8.9
Inflation rate assumptions increased by 0.5%
112.8
7.0
Inflation rate assumptions decreased by 0.5%
(106.3)
(6.6)
Total life expectancy increased by half a year
52.5
3.2
Total life expectancy decreased by half a year
(52.3)
(3.2)
Salary increase assumptions increased by 0.5%
5.6
0.5
Salary increase assumptions decreased by 0.5%
(5.4)
(0.4)
The figures in the table above have been calculated on an approximate basis, using information about the expected future benefit payments
out of the schemes. The analysis above may not be representative of actual changes to the position since changes in assumptions are
unlikely to happen in isolation. The change in inflation rates is assumed to affect the assumed rate of RPI inflation, CPI inflation and future
pension increases by an equal amount. The fair value of the schemes\u2019 assets are assumed not to be affected by any sensitivity changes
shown and so the statement of financial position values would increase or decrease by the same amount as the change in the defined benefit
obligations. There have been no changes in the methodology for the calculation of the sensitivities since the prior year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-538": { "value": "
Defined contribution schemes
Pension costs for defined contribution schemes are as follows:
Year ended
Year ended
31 March 2026 31 March 2025
\u00a3m \u00a3m
Defined contribution schemes
155.4
101.6
", "dimensions": { "concept": "ifrs-full:DisclosureOfDefinedContributionPlansExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-539": { "value": "
Defined benefit schemes
Statement of financial position assets and liabilities recognised are as follows:
31 March 2026
31 March 2025
\u00a3m \u00a3m
Retirement benefits \u2013 funds in surplus
77.3
98.8
Retirement benefits \u2013 funds in deficit
(111.3)
(107.2)
(34.0)
(8.4)
The Group has a number of defined benefit pension schemes. The principal defined benefit pension schemes in the UK are the Devonport Royal Dockyard Pension Scheme (\u2018DRDPS\u2019), the Babcock International Group Pension Scheme (\u2018BIGPS\u2019) and the Rosyth Royal Dockyard Pension Scheme (together, \u2018the Principal schemes\u2019). Each of these schemes is predominantly a final salary plan in which future pension levels are defined relative to number of years\u2019 service and final salary. Retirement age varies by scheme. The nature of these schemes is that the employees only contribute whilst they are active employees of a scheme, with the employer paying the balance of the cost required. All principal schemes are closed to future accrual of benefits. The contributions required and the assessment of the assets and the liabilities that have accrued to members and any deficit recovery payments required are agreed by the Group with the trustees of each scheme who are advised by independent, qualified actuaries. The Group also participates in the Babcock Rail Ltd Shared Cost Section of the Railways Pension Scheme (\u2018the Railways scheme\u2019). This scheme is a multi-employer shared cost scheme with the contributions required, the assessment of the assets and the liabilities that have accrued to members and any deficit recovery payments all agreed with the trustees who are advised by an independent, qualified actuary. The costs are, in the first instance, shared such that the active employees contribute 40% of the cost of providing the benefits and the employer contributes 60%. However, the assumption is that as the active membership reduces, the liability will ultimately revert to the Group, and as such, it is assumed that the entire cost of the Railways Scheme is met by the Group. The Group\u2019s share of the assets and liabilities is separately identified to those of other employers in the scheme and therefore the Group cannot be held liable for the obligations of other entities that participate in the Railways scheme. Defined benefit scheme risks Through its defined benefit pension schemes, the Group is exposed to a number of risks, the most notable of which are as follows:
Risk
Mitigation
Asset volatility \u2013 discount rates (determined with reference to
Pension scheme assets are held in a diversified portfolio of assets in order
AA corporate bond yields) are used to determine expected
to minimize risk arising from asset return volatility. Investments are well
returns on plan assets. Asset yields which vary from this
diversified, such that failure of any singular investment would not have a
expected return will result in an increase or decrease in the
material impact on the overall level of assets. The asset investment strategy
overall surplus/deficit.
is agreed following consult
ation between the Group and the plan Trustees.
The Group and the plan Trustees monitor the schemes closely
\u2013 especially
during periods of significant turmoil and will maintain a diversified investment
strategy intended to minimize asset volatility.
Inflation \u2013 the majority of pension scheme obligations are
The plan Trustees asset management policy includes investing in inflation
index
-
linked and therefore exposed to inflation risk. Increasing
hedging assets such as inflation linked bonds to mitigate this risk.
inflation will lead to higher liabilities. Inflation assumptions as
applied to pension obligations are a long
-term assessment of
inflation over
the life of the scheme.
Life expectancy \u2013 the majority of obligations are to provide
The Group monitors the risk of increasing life expectancy and will, from time
benefits for the life of the member and therefore changes in
to time, take out longevity swaps to mitigate this risk
\u2013 the most recent of
life expectancy of the scheme participants will impact the
liability position.
which was in 2009.
Interest rate \u2013 movements in corporate bond yields will result
The trustee\u2019s asset management policy includes investing in bonds and
in a change to the plan liabilities. Similarly, movements in gilt
therefore any impact on change in bond yields on the plan liabilities is
yields in isolation will have an impact on the schemes
partially offset by returns on assets.
funding
positions.
The asset portfolio invests in assets which increase in value as interest rates
decrease and thus the schemes holdings are designed to hedge against
interest rate risk for most of the funded liabilities.
Risk
Mitigation
Salary increases \u2013 changes in long-term salary increases
In 2019,
the Group closed the Babcock International Group Pension Scheme
will impact the final salary position on which pension benefits
to future accrual for some employees but they retained the salary link to their
are determined.
accrued benefits at that time. Subsequently, in September 2024, the salary
link was broken following the scheme closure. The Devonport Royal Dockyard
Pension Scheme was closed to future accrual for all members with effect
from 30 November 2024, with some members opting to break the salary link
in return for a cash sum.
The Rosyth Royal Dockyard Pension Scheme was
closed to future accrual and salary link broken for all employees in 2020.
The defined benefit schemes are prudently funded by payments to legally separate trustee-administered funds. The trustees of each scheme are required by law to act in the best interests of each scheme\u2019s members. In addition to determining future contribution requirements (with the agreement of the Group), the trustees are responsible for setting the schemes\u2019 investment strategy (subject to consultation with the Group). All the schemes have at least one independent trustee and member nominated trustees. The schemes are subject to regulation under the funding regime set out in Part III of the Pensions Act 2004. The details of the latest formal actuarial valuation of the scheme are as follows (the actuarial valuations of the Devonport Royal Dockyard Scheme as at 31 March 2023, Rosyth Royal Dockyard Scheme as at 31 March 2024 and the Babcock International Group Scheme as at 31 March 2025 have been completed):
Babcock Rail Ltd
Devonport Babcock Rosyth section of the
Royal Dockyard International Royal Dockyard Railways Pension
Scheme Group Scheme Scheme Scheme
Date of last formal completed actuarial valuation
31/03/2023
31/03/2025
31/03/2024
31/12/2022
Number of active members at above date
1,181
\u2013
\u2013
131
Actuarial valuation method
Projected unit
Projected unit
Projected unit
Attained age
Results of formal actuarial valuation:
Value of assets
\u00a31,330m
\u00a3908m
\u00a3653m
\u00a3262m
Level of funding
92%
107%
89%
100%
The Group also participates in or provides a number of other smaller pension schemes including a number of sections of the local government pension schemes where in most cases the employer contribution rates are fully reimbursed by the administering authorities. It also participates in the Magnox Electric Group Section of the Electricity Supply Pension Scheme and runs the Babcock Naval Services Pension Scheme, which commenced winding up in 2021, and for which the MOD retains liability. The Group\u2019s cash contribution rates payable to the schemes are expected to be as follows:
Babcock Rail
Babcock Ltd section of
Devonport International Rosyth Royal the Railways
Royal Dockyard Group Dockyard Pension
Scheme Scheme Scheme
Scheme
Other
Total
Future service contribution rate
\u2013
\u2013
\u2013
7.68%
\u2013
\u2013
Future service cash contributions
\u2013
\u2013
\u2013
\u00a30.2m
\u00a32.9m
\u00a33.1m
Deficit contributions
\u00a312.7m
\u2013
\u00a34.5m
\u2013
\u00a30.9m
\u00a318.1m
Additional longevity swap payments
\u00a31.8m
\u2013
\u2013
\u2013
\u2013
\u00a31.8m
Expected employer cash costs for 2026/27
\u00a314.5m
\u2013
\u00a34.5m
\u00a30.2m
\u00a33.8m
\u00a323.0m
Expected salary sacrifice contributions
\u2013
\u2013
\u2013
\u00a30.1m
\u00a30.8m
\u00a30.9m
Expected total employer contributions
\u00a314.5m
\u2013
\u00a34.5m
\u00a30.3m
\u00a34.6m
\u00a323.9m
Where salary sacrifice arrangements are in place, the Group effectively meets the members\u2019 contributions. The above level of funding is expected to continue until the next actuarial valuation of each scheme is completed; valuations are carried out every three years. The expected payments from the schemes are primarily pension payments and lump sums. Most of the pensions increase at a fixed rate or in line with RPI or CPI inflation when in payment. Benefit payments commence at retirement, death or incapacity and are predominantly calculated with reference to final salary. The levels of deficit contributions reflected above are expected to continue until technical provisions (self-sufficiency for the Babcock International Group Pension Scheme) funding levels are met either through asset performance or funding. Although the Group anticipates that scheme surpluses will be utilised during the life of the scheme to address member benefits, the Group recognises its retirement benefit surpluses in full in respect of schemes in surplus, on the basis that it is management\u2019s judgement that there are no substantive restrictions on the return of residual scheme assets in the event of a winding-up of the scheme after all member obligations have been met. The Group also considers that the trustees do not have the power to unilaterally wind-up the schemes or vary benefits. Virgin Media Case The Group is aware of the \u2018Virgin Media v NTL Pension Trustees Ltd and others\u2019 case and that there is a potential for it to have an impact on the Group\u2019s UK pension schemes. The case affects defined benefit schemes that provided contracted-out benefits before 6 April 2016 based on meeting the reference scheme test. Where scheme rules were amended prior to 6 April 2016, potentially impacting benefits accrued from 6 April 1997 to 6 April 2016, schemes needed the actuary to confirm that the reference scheme test was still being met by providing written confirmation for the purposes of Section 37 of the Pension Schemes Act 1993. In the Virgin Media case the High Court ruled that alterations to the scheme rules were void and ineffective because of the absence of written actuarial confirmation required under Section 37 of the Pension Schemes Act 1993. The case was appealed and, in a judgment delivered in July 2024, the Court of Appeal upheld the High Court's decision. The Group is aware that a further case has been heard in the High Court in 2025 (judgment in respect of which is still awaited) and that such case may provide additional clarity on issues related to the Virgin Media case and its implications for certain schemes and relevant historic amendments. The Group and the trustees of its defined benefit pension schemes had taken initial advice on the implications of the Virgin Media case for the Group's defined benefit pension schemes. For one scheme we received confirmation that there is no evidence to conclude that pension scheme liabilities have been understated as a result of non-compliance with section 37 of the Pension Schemes Act 1993 during the relevant period. For the other potentially impacted schemes, there was a process to identify areas that may require further investigation, depending on developing case law and the introduction of legislation on this point. The Pension Schemes Act 2026 (which gained Royal Assent on 29 April 2026) now includes a so-called legislative solution in relation to this issue. The Group understands this provides, broadly, for a process for schemes to obtain retrospective actuarial confirmation in relation to historic benefit changes which (subject to the relevant steps and conditions) could result in the scheme being treated as having met the requirements of Section 37 of the Pension Schemes Act 1993 in respect of the identified benefit changes. The next steps for the potentially impacted schemes, which may include the use of the legislative solution, will now be considered in light of the Pension Schemes Act 2026. The potential impact on the Group is therefore not yet known and continues to be assessed. The latest full actuarial valuations of the Group\u2019s defined benefit pension schemes have been updated to 31 March 2026 by independent qualified actuaries for IAS 19 purposes, on a best estimate basis, using the following assumptions:
Babcock Rail
Devonport Ltd section of
Royal Babcock Rosyth Royal the Railways
Dockyard International Dockyard Pension
March 202
6
Scheme Group Scheme Scheme Scheme
Rate of increase in pensionable salaries
3.20%
\u2013
\u2013
0.50%
Rate of increase in pensions (past service)
3.00%
3.25%
3.35%
2.95%
Discount rate
6.00%
5.95%
6.00%
6.10%
Inflation rate (RPI)
3.35%
3.35%
3.35%
3.30%
Inflation rate (CPI)
3.00%
3.00%
3.00%
2.90%
Weighted average duration of cash flows (years)
11
10
11
12
Total life expectancy for current pensioners aged 65 (years) \u2013 male
85.5
86.7
84.9
85.2
Total life expectancy for current pensioners aged 65 (years) \u2013 female
87.4
89.0
86.9
87.3
Total life expectancy for future pensioners currently aged 45 (years) \u2013 male
86.6
87.4
85.9
86.2
Total life expectancy for future pensioners currently aged 45 (years) \u2013 female
88.8
89.9
88.1
88.5
March 202
5
Rate of increase in pensionable salaries
2.90%
\u2013
\u2013
0.50%
Rate of increase in pensions (past service)
2.70%
3.00%
3.10%
2.70%
Discount rate
5.70%
5.70%
5.70%
5.70%
Inflation rate (RPI)
3.10%
3.10%
3.10%
3.10%
Inflation rate (CPI)
2.70%
2.70%
2.70%
2.70%
Weighted average duration of cash flows (years)
11
10
11
12
Total life expectancy for current pensioners aged 65 (years) \u2013 male
85.2
86.1
84.5
84.9
Total life expectancy for current pensioners aged 65 (years) \u2013 female
87.3
88.8
86.8
87.2
Total life expectancy for future pensioners currently aged 45 (years) \u2013 male
86.2
87.1
85.6
85.9
Total life expectancy for future pensioners currently aged 45 (years) \u2013 female
88.5
89.9
88.0
88.4
The fair value of the assets and the present value of the liabilities of the Group pension schemes at 31 March were as follows:
2026
2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Fair value of plan assets
Growth assets
Equities and equity-related derivatives
154.5
9.8
11.3
175.6
56.2
9.5
27.4
93.1
Property funds
145.8
\u2013
3.5
149.3
147.7
0.1
5.1
152.9
High yield bonds/emerging market debt
\u2013
\u2013
6.0
6.0
\u2013
\u2013
0.4
0.4
Absolute return and multi-strategy funds
1.3
107.8
48.5
157.6
1.5
110.7
30.9
143.1
Low-risk assets
Bonds
1,143.6
10.1
33.6
1,187.3
992.6
10.7
52.5
1,055.8
Matching assets*
1,235.1
70.9
75.3
1,381.3
1,513.0
68.5
48.9
1,630.4
Longevity swaps and annuities
(239.4)
\u2013
(10.2)
(249.6)
(234.6)
\u2013
(10.1)
(244.7)
Fair value of assets before impact of asset ceiling
2,440.9
198.6
168.0
2,807.5
2,476.4
199.5
155.1
2,831.0
Impact of IFRIC 14 asset ceiling
\u2013
\u2013
(3.1)
(3.1)
\u2013
\u2013
\u2013
\u2013
Fair value of assets
2,440.9
198.6
164.9
2,804.4
2,476.4
199.5
155.1
2,831.0
Percentage of assets quoted
89%
38%
10%
81%
83%
\u2013
33%
74%
Percentage of assets unquoted
11%
62%
90%
19%
17%
100%
67%
26%
Present value of defined benefit obligations
Active members
\u2013
28.0
71.4
99.4
\u2013
27.4
71.9
99.3
Deferred pensioners
791.3
60.1
27.3
878.7
819.6
58.0
26.3
903.9
Pensioners
1,695.4
118.0
46.9
1,860.3
1,668.5
125.7
42.0
1,836.2
Total defined benefit obligations
2,486.7
206.1
145.6
2,838.4
2,488.1
211.1
140.2
2,839.4
Net
(liabilities)/assets recognised in the
statement of financial position
(45.8)
(7.5)
19.3
(34.0)
(11.7)
(11.6)
14.9
(8.4)
* The matching assets for the Babcock International Group Pension Scheme, Devonport Royal Dockyard Pension Scheme and Rosyth Royal Dockyard Pension Scheme primarily comprise a \u201cLiability Driven Investment\u201d portfolio for each scheme, which invest in gilts, Network Rail bonds, gilt repurchase agreements, interest rate and inflation swaps, asset swaps and cash, on a segregated basis. For the Babcock International Group Pension Scheme and the Devonport Royal Dockyard Pension Scheme, there are also investments in investment grade credit, via both segregated portfolios and pooled investment vehicles. The various segregated portfolios and pooled investment vehicle each utilise derivative contracts. The Trustee has authorised the use of derivatives by the investment managers for efficient portfolio management purposes including to reduce certain investment risks such as interest rate risk and inflation risk. The principal investment in derivatives is gilt repurchase agreements, interest rate and inflation swaps in the matching portfolios; total return swaps in the return seeking portfolios. These derivatives are included within the matching assets and equities classifications. The matching assets category includes gross assets of \u00a32,490 million (2025: \u00a32,605 million) and associated repurchase agreement liabilities of \u00a31,255 million (2025: \u00a31,092 million). Repurchase agreements are entered into with counterparties to better offset the scheme\u2019s exposures to interest and inflation rates, whilst remaining invested in assets of a similar risk profile. The schemes do not invest directly in assets or shares of the Group. The longevity swaps have been valued in line with assumptions that are consistent with the requirements of IFRS 13 using Level 3 inputs. The key inputs to the valuation are the discount rate and mortality assumptions. Amounts recorded in the Group income statement
2026 2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Current service cost
\u2013
\u2013
3.4
3.4
7.9
0.1
3.1
11.1
Incurred expenses
3.9
0.2
0.8
4.9
6.1
0.4
0.3
6.8
Past service cost
\u2013
\u2013
\u2013
\u2013
(1.2)
\u2013
\u2013
(1.2)
Total included within operating profit
3.9
0.2
4.2
8.3
12.8
0.5
3.4
16.7
Net interest cost/(credit)
\u2013
0.6
(1.0)
(0.4)
5.1
0.1
(0.7)
4.5
Total included within income statement
3.9
0.8
3.2
7.9
17.9
0.6
2.7
21.2
Amounts recorded in the Group statement of comprehensive income
Year ended 31 March 2026 Year ended 31 March 2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Actual return less interest on pension
scheme assets
(17.5)
2.0
3.7
(11.8)
(239.8)
(34.8)
(18.0)
(292.6)
Experience losses arising on scheme liabilities
(24.4)
(1.0)
(3.6)
(29.0)
(9.4)
(0.5)
(1.9)
(11.8)
Changes in assumptions on scheme liabilities
(13.3)
3.7
4.1
(5.5)
276.4
26.1
17.4
319.9
Asset ceiling restriction
\u2013
\u2013
(3.1)
(3.1)
\u2013
\u2013
\u2013
\u2013
At 31 March
(55.2)
4.7
1.1
(49.4)
27.2
(9.2)
(2.5)
15.5
Analysis of movement in the Group statement of financial position
Year ended 31 March 2026
Year ended 31 March 2025
Principal
Railways
Other
Principal
Railways
Other
schemes scheme schemes Total schemes scheme schemes Total
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Fair value of plan assets
At 1 April
2,476.4
199.5
155.1
2,831.0
2,739.0
235.1
110.2
3,084.3
Interest on assets
136.9
11.0
9.0
156.9
124.4
11.0
6.7
142.1
Actuarial loss on assets
(17.5)
2.0
3.7
(11.8)
(239.8)
(34.8)
(18.0)
(292.6)
Employer contributions
25.0
0.2
6.5
31.7
99.7
0.5
6.8
107.0
Employee contributions
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
Benefits paid
(179.9)
(14.1)
(6.3)
(200.3)
(192.0)
(12.3)
(5.5)
(209.8)
Settlements
\u2013
\u2013
\u2013
\u2013
(54.9)
\u2013
54.9
\u2013
At 31 March
2,440.9
198.6
168.0
2,807.5
2,476.4
199.5
155.1
2,831.0
Impact of IFRIC 14 asset ceiling
\u2013
\u2013
(3.1)
(3.1)
\u2013
\u2013
\u2013
\u2013
Fair value of assets
2,440.9
198.6
164.9
2,804.4
2,476.4
199.5
155.1
2,831.0
Present value of benefit obligations
At 1 April
2,488.1
211.1
140.2
2,839.4
2,856.2
237.4
100.4
3,194.0
Current service cost
\u2013
\u2013
3.4
3.4
7.9
0.1
3.1
11.1
Incurred expenses
3.9
0.2
0.8
4.9
6.1
0.4
0.3
6.8
Past service cost
\u2013
\u2013
\u2013
\u2013
(1.2)
\u2013
\u2013
(1.2)
Interest cost
136.9
11.6
8.0
156.5
129.5
11.1
6.0
146.6
Employee contributions
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
Experience loss
24.4
1.0
3.6
29.0
9.4
0.5
1.9
11.8
Actuarial loss/(gain) \u2013 demographics
36.7
1.0
(0.7)
37.0
(4.0)
(0.4)
(0.3)
(4.7)
Actuarial gain \u2013 financial
(23.4)
(4.7)
(3.4)
(31.5)
(272.4)
(25.7)
(17.1)
(315.2)
Benefits paid
(179.9)
(14.1)
(6.3)
(200.3)
(192.0)
(12.3)
(5.5)
(209.8)
Settlements
\u2013
\u2013
\u2013
\u2013
(51.4)
\u2013
51.4
\u2013
At 31 March
2,486.7
206.1
145.6
2,838.4
2,488.1
211.1
140.2
2,839.4
Net (deficit)/surplus at 31 March
(45.8)
(7.5)
19.3
(34.0)
(11.7)
(11.6)
14.9
(8.4)
The movement in net deficits for the year ended 31 March 2026 is as a result of the movement in assets and liabilities shown above. The disclosures below relate to post-retirement benefit schemes which are accounted for as defined benefit schemes in accordance with IAS 19. The changes to the Group statement of financial position at 31 March 2026 and the changes to the Group income statement for the year to March 2027, if the assumptions were sensitised by the amounts below, would be:
Defined benefit
obligations Income
2026 statement 2027
\u00a3m \u00a3m
Initial assumptions
2,838.4
8.8
Discount rate assumptions increased by 0.5%
(144.7)
(9.6)
Discount rate assumptions decreased by 0.5%
159.0
8.9
Inflation rate assumptions increased by 0.5%
112.8
7.0
Inflation rate assumptions decreased by 0.5%
(106.3)
(6.6)
Total life expectancy increased by half a year
52.5
3.2
Total life expectancy decreased by half a year
(52.3)
(3.2)
Salary increase assumptions increased by 0.5%
5.6
0.5
Salary increase assumptions decreased by 0.5%
(5.4)
(0.4)
The figures in the table above have been calculated on an approximate basis, using information about the expected future benefit payments out of the schemes. The analysis above may not be representative of actual changes to the position since changes in assumptions are unlikely to happen in isolation. The change in inflation rates is assumed to affect the assumed rate of RPI inflation, CPI inflation and future pension increases by an equal amount. The fair value of the schemes\u2019 assets are assumed not to be affected by any sensitivity changes shown and so the statement of financial position values would increase or decrease by the same amount as the change in the defined benefit obligations. There have been no changes in the methodology for the calculation of the sensitivities since the prior year.", "dimensions": { "concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-507": { "value": "26. Changes in net debt
Other
31 March Lease Additional non-cash Changes in Exchange 31 March
2025 Cash flow interest leases
movement
1
fair value movement 2026
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cash and bank balances
646.6
87.4
\u2013
\u2013
\u2013
\u2013
5.9
739.9
Bank overdrafts
(0.1)
(16.2)
\u2013
\u2013
\u2013
\u2013
\u2013
(16.3)
Cash, cash equivalents and bank overdrafts
646.5
71.2
\u2013
\u2013
\u2013
\u2013
5.9
723.6
Debt
(751.2)
3.0
\u2013
\u2013
(3.1)
(13.0)
(10.3)
(774.6)
Derivatives hedging Group debt
(10.8)
\u2013
\u2013
\u2013
\u2013
7.7
\u2013
(3.1)
Lease liabilities
(274.6)
61.6
(17.1)
(73.1)
\u2013
\u2013
(4.1)
(307.3)
Changes in liabilities from financing
arrangements
(1,036.6)
64.6
(17.1)
(73.1)
(3.1)
(5.3)
(14.4)
(1,085.0)
Lease receivables
44.6
(66.3)
5.2
60.9
\u2013
\u2013
1.5
45.9
Loans to joint ventures and associates
3.6
(0.2)
\u2013
\u2013
(0.1)
\u2013
\u2013
3.3
Derivatives hedging interest on Group debt
(31.4)
\u2013
\u2013
\u2013
\u2013
14.6
\u2013
(16.8)
Net debt
(373.3)
69.3
(11.9)
(12.2)
(3.2)
9.3
(7.0)
(329.0)
Net debt, including loans to joint ventures and associates and lease receivables is an alternative performance measure of the Group and consists of the total of loans, including the interest rate and foreign exchange derivatives which hedge the loans, bank overdrafts, cash and cash equivalents, loans to joint ventures and associates, lease receivables and lease obligations. The Group\u2019s key performance indicators exclude certain lease obligations in order to more closely align with the Group\u2019s debt covenants which are prepared on a pre-IFRS 16 basis and the Financial review presents net debt and related performance measures including and excluding certain lease obligations for this purpose.
Other
31 March Lease Additional non-cash Disposal of Changes in Exchange 31 March
2024 Cash flow interest leases
movement
1
business fair value movement 2025
\u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m \u00a3m
Cash and bank balances
570.6
87.1
\u2013
\u2013
\u2013
\u2013
(11.1)
646.6
Bank overdrafts
(18.0)
18.2
\u2013
\u2013
\u2013
\u2013
\u2013
(0.3)
(0.1)
Cash, cash equivalents and bank
overdrafts
552.6
105.3
\u2013
\u2013
\u2013
\u2013
\u2013
(11.4)
646.5
Debt
(749.5)
0.5
\u2013
\u2013
(2.1)
\u2013
(4.7)
4.6
(751.2)
Derivatives hedging Group debt
(11.1)
\u2013
\u2013
\u2013
\u2013
\u2013
0.3
\u2013
(10.8)
Lease liabilities
(230.5)
59.5
(14.1)
(96.2)
\u2013
1.1
\u2013
5.6
(274.6)
Changes in liabilities from financing
arrangements
(991.1)
60.0
(14.1)
(96.2)
(2.1)
1.1
(4.4)
10.2
(1,036.6)
Lease receivables
35.5
(20.7)
5.0
24.7
\u2013
\u2013
\u2013
0.1
44.6
Loans to joint ventures and associates
3.9
(0.3)
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
3.6
Derivatives hedging interest on
Group debt
(36.3)
\u2013
\u2013
\u2013
\u2013
\u2013
4.9
\u2013
(31.4)
Net debt
(435.4)
144.3
(9.1)
(71.5)
(2.1)
1.1
0.5
(1.1)
(373.3)
1. Other non-cash movements predominantly relate to amortisation of loan fees.
", "dimensions": { "concept": "babcockinternational:DisclosureOfChangesInNetDebt", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-585": { "value": "Net debt, including loans to joint ventures and associates and lease receivables is an alternative performance measure of the Group and consists of the total of loans, including the interest rate and foreign exchange derivatives which hedge the loans, bank overdrafts, cash and cash equivalents, loans to joint ventures and associates, lease receivables and lease obligations. The Group\u2019s key performance indicators exclude certain lease obligations in order to more closely align with the Group\u2019s debt covenants which are prepared on a pre-IFRS 16 basis and the Financial review presents net debt and related performance measures including and excluding certain lease obligations for this purpose. ", "dimensions": { "concept": "babcockinternational:DescriptionOfAccountingPolicyForChangesInNetDebt", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-508": { "value": "
27. Acquisition and disposal of subsidiaries, businesses and joint ventures and associates
Acquisitions
There have been no acquisitions in the year ended 31 March 2026 nor in the prior financial year.
Disposals
During the current year, the Group has received settlement of loan notes held at fair value through profit and loss related to the historic
disposal of its Civil Training business. The gain on settlement of \u00a38.1 million has been recorded as a specific adjusting item (Note 2).
During the prior year the Group disposed of its 70.0% investment in National Training Institute LLC in Oman (\u2018NTI\u2019). The details of the disposal
are provided in the table below. In addition, during the prior year, Airwork Technical Services & Partners LLC (\u2018ATS\u2019), a partly owned
subsidiary registered in Oman, entered liquidation proceedings. As a result of the liquidation (combined with the Group only holding a 51.0%
interest that limits the ability to further influence or unwind the liquidation process), the Group has concluded that the IFRS 10 criteria
regarding control are no longer satisfied and, as such, the entity has been deconsolidated. Details are provided in the table below.
Year ended 31 March 2025
NTI
ATS
\u00a3m \u00a3m
Net assets disposed (excluding cash & goodwill)
0.2
(0.4)
Goodwill disposed
0.5
\u2013
Cash and cash equivalents disposed
0.4
0.8
Recycling of translation reserve
(2.5)
\u2013
Net assets/(liabilities) disposed adjusted for movements in translation reserve
(1.4)
0.4
Cash consideration
0.1
\u2013
Recognition of investment in associate
\u2013
0.4
Gain on disposal
1.5
\u2013
Disposal related items \u2013 release of provisions
\u2013
\u2013
Business acquisition, merger and divestment related items
1.5
\u2013
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-509": { "value": "
28. Transactions with non-controlling interests
There were no material transactions with non-controlling interests in the current or prior year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-510": { "value": "29. Contingent liabilities There are a number of contingent liabilities that arise in the normal course of business, including: a) The nature of the Group\u2019s long-term contracts means that there are reasonably frequent contractual issues, variations and renegotiations that arise in the ordinary course of business, including liabilities that arise on completion of contracts and on conclusion of relationships with joint ventures and associates. The Group takes account of the advice of experts, both internal and external, in making judgements on contractual issues and whether the outcome of negotiations will result in an obligation to the Group. The Directors do not believe that the outcome of these matters will result in any material adverse change in the Group\u2019s financial position. b) As a large contracting organisation, the Group has a significant number of contracts with customers to deliver services and products, as well as with its supply chain, where the Group cannot deliver all those services and products itself. The Group is involved in disputes and litigation, which have arisen in the course of its normal trading in connection with these contracts. Whilst the Directors do not believe that the outcome of these matters will result in any material adverse change in the Group\u2019s financial position, it is possible that, if any of these disputes come to court, the court may take a different view to the Group. c) The Group is subject to corporate and other tax rules in the jurisdictions in which it operates. Changes in tax rates, tax reliefs and tax laws, or interpretation of the law, by the relevant tax authorities may result in financial and reputational damage to the Group. This may affect the Group\u2019s financial condition and performance if such matters result in charges in excess of those already provided in the financial statements \u2013 see notes 7 and 20 for further details of amounts provided. d) The Group has given certain indemnities and warranties in the course of disposing of businesses and companies and in completing contracts. The Group believes that any liability in respect of these is unlikely to have a material effect on the Group\u2019s financial position. e) Corporate rules in certain jurisdictions may extend to compensatory trade agreements, or economic offset rules, where we may have to commit to use local content in delivering programmes of work. Delivery of offset is also subject to interpretations of law and agreement with local authorities, which we monitor closely but may give rise to financial and reputational damage to the Group if not undertaken appropriately. A contingent liability is a possible obligation arising from past events whose existence will be confirmed only on the occurrence or non-occurrence of uncertain future events outside the Group\u2019s control, or a present obligation that is not recognised because it is not probable that an outflow of economic benefits will occur or the value of such outflow cannot be measured reliably. The Group does not recognise contingent liabilities in its statement of financial position \u2013 such matters are only recognised in the statement of financial position when the obligation rises from possible to probable and the outflow of economic benefits becomes probable and can be measured reliably. ", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-553": { "value": "29. Contingent liabilities There are a number of contingent liabilities that arise in the normal course of business, including: a) The nature of the Group\u2019s long-term contracts means that there are reasonably frequent contractual issues, variations and renegotiations that arise in the ordinary course of business, including liabilities that arise on completion of contracts and on conclusion of relationships with joint ventures and associates. The Group takes account of the advice of experts, both internal and external, in making judgements on contractual issues and whether the outcome of negotiations will result in an obligation to the Group. The Directors do not believe that the outcome of these matters will result in any material adverse change in the Group\u2019s financial position. b) As a large contracting organisation, the Group has a significant number of contracts with customers to deliver services and products, as well as with its supply chain, where the Group cannot deliver all those services and products itself. The Group is involved in disputes and litigation, which have arisen in the course of its normal trading in connection with these contracts. Whilst the Directors do not believe that the outcome of these matters will result in any material adverse change in the Group\u2019s financial position, it is possible that, if any of these disputes come to court, the court may take a different view to the Group. c) The Group is subject to corporate and other tax rules in the jurisdictions in which it operates. Changes in tax rates, tax reliefs and tax laws, or interpretation of the law, by the relevant tax authorities may result in financial and reputational damage to the Group. This may affect the Group\u2019s financial condition and performance if such matters result in charges in excess of those already provided in the financial statements \u2013 see notes 7 and 20 for further details of amounts provided. d) The Group has given certain indemnities and warranties in the course of disposing of businesses and companies and in completing contracts. The Group believes that any liability in respect of these is unlikely to have a material effect on the Group\u2019s financial position. e) Corporate rules in certain jurisdictions may extend to compensatory trade agreements, or economic offset rules, where we may have to commit to use local content in delivering programmes of work. Delivery of offset is also subject to interpretations of law and agreement with local authorities, which we monitor closely but may give rise to financial and reputational damage to the Group if not undertaken appropriately. A contingent liability is a possible obligation arising from past events whose existence will be confirmed only on the occurrence or non-occurrence of uncertain future events outside the Group\u2019s control, or a present obligation that is not recognised because it is not probable that an outflow of economic benefits will occur or the value of such outflow cannot be measured reliably. The Group does not recognise contingent liabilities in its statement of financial position \u2013 such matters are only recognised in the statement of financial position when the obligation rises from possible to probable and the outflow of economic benefits becomes probable and can be measured reliably. 30. Capital and other financial commitments Capital commitments
31 March 2026
31 March 2025
\u00a3m \u00a3m
Contracts placed for future capital expenditure not provided for in the financial statements
14.2
17.1
Subsidiary audit exemptions The following UK subsidiary undertakings are exempt from the requirements of the Companies Act 2006 (the Act) relating to the audit of individual accounts by virtue of section 479A of the Act.
Company
Company
Legal entity name
number
Legal entity name
number
Airwork Limited
00322249
Babcock Marine (Rosyth) Limited
SC333105
Appledore Shipbuilders (2004) Limited
02052982
Babcock Marine Limited
02141109
Babcock Airports Limited
03954520
Babcock Marine Design Limited
16393958
Babcock Assessments Limited
02881056
Babcock Marine Products Limited
03658278
Babcock Aviation Services (Holdings) Limited
08993601
Babcock Marine Shipbuilding Limited
14302509
Babcock Company Holdings Limited (previously
15413856
Babcock Mission Critical Services Design and
05035651
Babcock IP Management (Number Three) Limited)
Completions Limited
Babcock Contractors Limited
04540026
Babcock Mission Critical Services Leasing Limited
04635275
Babcock Critical Assets Holdings LLP
OC376675
Babcock Mission Critical Services Limited
08010453
Babcock Defence & Security Holdings LLP
OC376674
Babcock Mission Critical Services Topco Limited
08338012
Babcock Defence and Security Investments Limited
08132272
Babcock Mission Critical Services UK Limited
07527245
Babcock Defence Systems Limited
02999029
Babcock MSS Limited
01996548
Babcock Design & Technology Limited
SC173117
Babcock Nuclear Limited
05265567
Babcock DS 2019 Limited
01199791
Babcock Overseas Investments Limited
02669327
Babcock Education & Training Holdings LLP
OC376676
Babcock Project Investments Limited
03463927
Babcock Education and Skills Limited
03494815
Babcock Project Services Limited
04539887
Babcock Education Holdings Limited
08132276
Babcock Services Group Limited
03939840
Babcock Fire Services Limited
03707192
Babcock Services Limited
10278084
Babcock Group (US Investments) Limited
07445425
Babcock Southern Careers Limited
03007083
Babcock Information Analytics and Security Limited
02275471
Babcock Southern Holdings Limited
01915771
Babcock Integrated Technology (Korea) Limited
09566389
Babcock Support Services (Investments) Limited
04393168
Babcock Integration LLP
OC356460
Babcock UK Finance
00096730
Babcock International Limited
00065805
Babcock Ukraine Limited
15155796
Babcock International Support Services Limited
03335786
Babcock US Investments Limited
07422616
Babcock Investments (Fire Services) Limited
04380306
Bond Aviation Topco Limited
08493398
Babcock Investments (Number Four) Limited
05269128
Brooke Marine Shipbuilders Limited
02113314
Babcock Investments Limited
00165086
FBM Babcock Marine Holdings (UK) Limited
02530482
Babcock Land Limited
03493110
FBM Babcock Marine Limited
00828219
Babcock Learning and Development Partnership LLP
OC372058
FBM Marine International (UK) Limited
02530345
Babcock M 2019 Limited
02530351
Flagship Fire Fighting Training Limited
03700728
Babcock Management 2019 Limited
03613756
LGE IP Management Company Limited
SC695940
Babcock Management Limited
00107414
Marine Engineering & Fabrications (Holdings) Limited
03936451
Babcock Marine (Clyde) Limited
SC220243
Marine Engineering & Fabrications Limited
02742584
Babcock Marine (Devonport) Limited
02959785
Peterhouse Group Limited
01517100
Babcock International Group PLC will guarantee all outstanding liabilities that these subsidiaries are subject to as at the financial year ended 31 March 2026 in accordance with section 479C of the Act, as amended by the Companies and Limited Liability Partnerships (Accounts and Audit Exemptions and Change of Accounting Framework) Regulations 2012.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-586": { "value": "A contingent liability is a possible obligation arising from past events whose existence will be confirmed only on the occurrence or non-occurrence of uncertain future events outside the Group\u2019s control, or a present obligation that is not recognised because it is not probable that an outflow of economic benefits will occur or the value of such outflow cannot be measured reliably. The Group does not recognise contingent liabilities in its statement of financial position \u2013 such matters are only recognised in the statement of financial position when the obligation rises from possible to probable and the outflow of economic benefits becomes probable and can be measured reliably. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-511": { "value": "
30. Capital and other financial commitments
Capital commitments
31 March 2026
31 March 2025
\u00a3m \u00a3m
Contracts placed for future capital expenditure not provided for in the financial statements
14.2
17.1
Subsidiary audit exemptions
The following UK subsidiary undertakings are exempt from the requirements of the Companies Act 2006 (the Act) relating to the audit of
individual accounts by virtue of section 479A of the Act.
Company
Company
Legal entity name
number
Legal entity name
number
Airwork Limited
00322249
Babcock Marine (Rosyth) Limited
SC333105
Appledore Shipbuilders (2004) Limited
02052982
Babcock Marine Limited
02141109
Babcock Airports Limited
03954520
Babcock Marine Design Limited
16393958
Babcock Assessments Limited
02881056
Babcock Marine Products Limited
03658278
Babcock Aviation Services (Holdings) Limited
08993601
Babcock Marine Shipbuilding Limited
14302509
Babcock Company Holdings Limited (previously
15413856
Babcock Mission Critical Services Design and
05035651
Babcock IP Management (Number Three) Limited)
Completions Limited
Babcock Contractors Limited
04540026
Babcock Mission Critical Services Leasing Limited
04635275
Babcock Critical Assets Holdings LLP
OC376675
Babcock Mission Critical Services Limited
08010453
Babcock Defence & Security Holdings LLP
OC376674
Babcock Mission Critical Services Topco Limited
08338012
Babcock Defence and Security Investments Limited
08132272
Babcock Mission Critical Services UK Limited
07527245
Babcock Defence Systems Limited
02999029
Babcock MSS Limited
01996548
Babcock Design & Technology Limited
SC173117
Babcock Nuclear Limited
05265567
Babcock DS 2019 Limited
01199791
Babcock Overseas Investments Limited
02669327
Babcock Education & Training Holdings LLP
OC376676
Babcock Project Investments Limited
03463927
Babcock Education and Skills Limited
03494815
Babcock Project Services Limited
04539887
Babcock Education Holdings Limited
08132276
Babcock Services Group Limited
03939840
Babcock Fire Services Limited
03707192
Babcock Services Limited
10278084
Babcock Group (US Investments) Limited
07445425
Babcock Southern Careers Limited
03007083
Babcock Information Analytics and Security Limited
02275471
Babcock Southern Holdings Limited
01915771
Babcock Integrated Technology (Korea) Limited
09566389
Babcock Support Services (Investments) Limited
04393168
Babcock Integration LLP
OC356460
Babcock UK Finance
00096730
Babcock International Limited
00065805
Babcock Ukraine Limited
15155796
Babcock International Support Services Limited
03335786
Babcock US Investments Limited
07422616
Babcock Investments (Fire Services) Limited
04380306
Bond Aviation Topco Limited
08493398
Babcock Investments (Number Four) Limited
05269128
Brooke Marine Shipbuilders Limited
02113314
Babcock Investments Limited
00165086
FBM Babcock Marine Holdings (UK) Limited
02530482
Babcock Land Limited
03493110
FBM Babcock Marine Limited
00828219
Babcock Learning and Development Partnership LLP
OC372058
FBM Marine International (UK) Limited
02530345
Babcock M 2019 Limited
02530351
Flagship Fire Fighting Training Limited
03700728
Babcock Management 2019 Limited
03613756
LGE IP Management Company Limited
SC695940
Babcock Management Limited
00107414
Marine Engineering & Fabrications (Holdings) Limited
03936451
Babcock Marine (Clyde) Limited
SC220243
Marine Engineering & Fabrications Limited
02742584
Babcock Marine (Devonport) Limited
02959785
Peterhouse Group Limited
01517100
Babcock International Group PLC will guarantee all outstanding liabilities that these subsidiaries are subject to as at the financial year ended
31 March 2026 in accordance with section 479C of the Act, as amended by the Companies and Limited Liability Partnerships (Accounts and
Audit Exemptions and Change of Accounting Framework) Regulations 2012.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-512": { "value": "
31. Related party transactions
Related party transactions for the year ended 31 March 2026 are:
2026
2026
2026 Year-end Year-end
2026 Purchases debtor creditor
Revenue to from balance balance
202
6
\u00a3m \u00a3m \u00a3m \u00a3m
Joint ventures and associates
Ascent Flight Training (Management) Limited
4.3
\u2013
0.8
\u2013
Rotary Wing Training Limited
6.0
\u2013
0.6
\u2013
Fixed Wing Training Limited
6.3
\u2013
0.6
\u2013
Advanced Jet Training Limited
3.2
\u2013
0.3
\u2013
Rear Crew Training Limited
1.4
\u2013
0.1
\u2013
AirTanker Services Limited
13.0
\u2013
2.7
\u2013
Alert Communications Limited
5.2
\u2013
0.7
\u2013
Alkali Metal Processing Limited
1.8
(15.2)
\u2013
\u2013
41.2
(15.2)
5.8
\u2013
Other
Fusion Business Solutions (UK) Limited
\u2013
(0.3)
\u2013
\u2013
\u2013
(0.3)
\u2013
\u2013
2025
2025
2025 Year-end Year-end
2025 Purchases debtor creditor
Revenue to from balance balance
202
5
\u00a3m \u00a3m \u00a3m \u00a3m
Joint ventures and associates
Ascent Flight Training (Management) Limited
2.8
\u2013
1.2
\u2013
Rotary Wing Training Limited
6.5
\u2013
0.5
\u2013
Fixed Wing Training Limited
5.3
\u2013
0.5
\u2013
Advanced Jet Training Limited
3.3
\u2013
\u2013
\u2013
Rear Crew Training Limited
1.2
\u2013
0.1
\u2013
AirTanker Services Limited
12.1
\u2013
0.1
\u2013
Alert Communications Limited
\u2013
\u2013
0.5
\u2013
Alkali Metal Processing Limited
1.7
(4.9)
0.4
(3.3)
32.9
(4.9)
3.3
(3.3)
a) Other related parties represent transactions with entities in which members of the Board, or their immediate family, hold interests and/or
directorships.
b) All transactions noted above arise in the normal course of business \u2013 typically revenue transactions (including those part of the year-end
debtor balance) are non-interest bearing and on standard 30-day payment terms.
c) Loans to Joint Ventures and Associates are set out in note 14.
d) Defined benefit pension schemes. Please refer to note 25 for transactions with the Group defined benefit pension schemes.
e) Key management compensation is shown in note 6.
f) Transactions in employee benefits trusts are shown in note 23.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-540": { "value": "31. Related party transactions Related party transactions for the year ended 31 March 2026 are:
2026
2026
2026 Year-end Year-end
2026 Purchases debtor creditor
Revenue to from balance balance
202
6
\u00a3m \u00a3m \u00a3m \u00a3m
Joint ventures and associates
Ascent Flight Training (Management) Limited
4.3
\u2013
0.8
\u2013
Rotary Wing Training Limited
6.0
\u2013
0.6
\u2013
Fixed Wing Training Limited
6.3
\u2013
0.6
\u2013
Advanced Jet Training Limited
3.2
\u2013
0.3
\u2013
Rear Crew Training Limited
1.4
\u2013
0.1
\u2013
AirTanker Services Limited
13.0
\u2013
2.7
\u2013
Alert Communications Limited
5.2
\u2013
0.7
\u2013
Alkali Metal Processing Limited
1.8
(15.2)
\u2013
\u2013
41.2
(15.2)
5.8
\u2013
Other
Fusion Business Solutions (UK) Limited
\u2013
(0.3)
\u2013
\u2013
\u2013
(0.3)
\u2013
\u2013
2025
2025
2025 Year-end Year-end
2025 Purchases debtor creditor
Revenue to from balance balance
202
5
\u00a3m \u00a3m \u00a3m \u00a3m
Joint ventures and associates
Ascent Flight Training (Management) Limited
2.8
\u2013
1.2
\u2013
Rotary Wing Training Limited
6.5
\u2013
0.5
\u2013
Fixed Wing Training Limited
5.3
\u2013
0.5
\u2013
Advanced Jet Training Limited
3.3
\u2013
\u2013
\u2013
Rear Crew Training Limited
1.2
\u2013
0.1
\u2013
AirTanker Services Limited
12.1
\u2013
0.1
\u2013
Alert Communications Limited
\u2013
\u2013
0.5
\u2013
Alkali Metal Processing Limited
1.7
(4.9)
0.4
(3.3)
32.9
(4.9)
3.3
(3.3)
a) Other related parties represent transactions with entities in which members of the Board, or their immediate family, hold interests and/or directorships. b) All transactions noted above arise in the normal course of business \u2013 typically revenue transactions (including those part of the year-end debtor balance) are non-interest bearing and on standard 30-day payment terms. c) Loans to Joint Ventures and Associates are set out in note 14. d) Defined benefit pension schemes. Please refer to note 25 for transactions with the Group defined benefit pension schemes. e) Key management compensation is shown in note 6. f) Transactions in employee benefits trusts are shown in note 23.", "dimensions": { "concept": "ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-513": { "value": "
32. Events after the reporting period
The Group announced a further \u00a3200 million share buyback programme on 13 May 2026 (subsequent to the \u00a3200 million share buyback
programme announced in June 2025 and completed in April 2026). This buyback programme is planned to be executed over the course of
the year ended 31 March 2027. This will reduce cash and the number of shares in issue and impact future earnings per share.
In June 2026, the Group utilised the ability to extend the Maturity Date of the RCF by a further 365 days to 18 July 2031.
There are no other events after the reporting period which would materially impact the balances reported in this Annual Report.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-554": { "value": "33. Group entities In accordance with Section 409 of the Companies Act 2006, a full list of subsidiaries and equity accounted investments as at 31 March 2026 is disclosed below. Unless otherwise stated, the Group\u2019s interest in the voting share capital is represented by one type of ordinary share and is 100%, the entities are unlisted, the year end is 31 March and the address of the registered office is 33 Wigmore Street, London, W1U 1QX. Babcock (UK) Holdings Limited is the only entity held directly by Babcock International Group PLC. No subsidiary undertakings have been excluded from the consolidation. Subsidiaries, wholly owned Airwork Limited Appledore Shipbuilders (2004) Limited 1 Armstrong Technology Associates Limited* Babcock (NZ) Limited Babcock Central Office, HMNZ Dockyard, Devonport Naval Base, Queens Parade, Devonport, Auckland, 0744, New Zealand Babcock (UK) Holdings Limited 3 Babcock Aerospace Limited Babcock Africa Investments (Pty) Ltd Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Airports Limited Babcock Australia Holdings Pty Ltd Level 9, 70 Franklin Street, Adelaide SA 5000, Australia Babcock Aviation Services Holdings International Limited 12 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Aviation Services (Holdings) Limited ,1 Babcock B.V. Bezuidenhoutseweg 1, 2594 AB The Hague, The Netherlands Babcock Canada Inc. 99 Bank St., Suite 500, Ottawa ON K1P 6B9, Canada Babcock Communications Cyprus Limited Nikiforou Foka 36, Limassol 3040, Cyprus Babcock Communications Limited Babcock Company Holdings Limited Babcock Contractors Limited Babcock Corporate Secretaries Limited* Babcock Corporate Services Limited Babcock Critical Assets Holdings LLP Babcock Critical Services Limited 103 Waterloo Street, Glasgow, Scotland, G2 7BW, United Kingdom Babcock Defence & Security Holdings LLP Babcock Defence and Security Investments Limited Babcock Defense (USA) Incorporated 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock Defence Systems Limited Babcock Design & Technology Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Babcock Education & Training Holdings LLP Babcock Education Holdings Limited Babcock Engineering Limited* Babcock Fire Services (SW) Limited Babcock Fire Services Limited Babcock Fire Training (Avonmouth) Limited Babcock Group (US Investments) Limited Babcock Holdings (USA) Incorporated 7 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock Holdings Limited 3 Babcock Information Analytics and Security Holdings Limited* Babcock Information Analytics and Security Limited 5 Babcock Integrated Technology (Korea) Limited Babcock Integrated Technology GmbH Am Zoppenberg 23, 41366 Schwalmtal, Germany Babcock Integrated Technology Limited Babcock Integration LLP Babcock International Belgium SRL 11 rue de colonies, Brussels, Belgium, 1000 Babcock International Estonia OU Harju maakond,, Tallinn, Kesklinna linnaosa, P\u00e4rnu mnt 139e/2-8, 11317, Estonia Babcock International France Aviation SAS Lieu dit le Portaret, 83340, Le Cannet -des- Maures, France Babcock International France SAS 21 Rue Leblanc 75015, Paris, France Babcock International France Terre SAS 21 Rue Leblanc 75015, Paris, France Babcock International Holdings BV Bezuidenhoutseweg 1, 2594 AB The Hague, The Netherlands Babcock International Holdings Limited 1 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock International Limited 5 Babcock International Support Services Limited Babcock International US Inc 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock Investments (Fire Services) Limited Babcock Investments (Number Four) Limited Babcock Investments Limited Babcock IP Management (Number One) Limited Babcock IP Management (Number Two) Limited Babcock Ireland Finance Limited 44 Esplanade, St Helier, JE4 9WG, Jersey Babcock Korea Limited 72 -1, Shinsan-ro, Saha-gu, Busan, 49434, South Korea Babcock Land Limited Babcock Land Defence Limited Babcock M 2019 Limited Babcock Malta (Number Two) Limited 44 Esplanade, St Helier, JE4 9WG, Jersey Babcock Management Limited Babcock Marine (Clyde) Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Babcock Marine (Devonport) Limited 1 Babcock Marine (Rosyth) Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Babcock Marine Design Limited Babcock Marine Holdings (UK) Limited 5 Babcock Marine Limited Babcock Marine Products Limited* Babcock Marine Shipbuilding Limited Babcock Marine Training Limited 1 Babcock MCS Congo SA* Avenue Charles de Gaulle, PB 5871, Pointe - Noire, PB 5871, The Republic of Congo Babcock Mission Critical Services Australasia Pty Ltd Level 9, 70 Franklin Street, Adelaide SA 5000, Australia Babcock Mission Critical Services Design and Completions Limited Babcock Mission Critical Services (Ireland) Limited 13 -18 City Quay, Dublin 2, Ireland Babcock Mission Critical Services Leasing Limited Babcock Mission Critical Services Ltd Babcock Mission Critical Services Onshore Limited Babcock Mission Critical Services Topco Ltd 1 Babcock Mission Critical Services UK Limited Babcock MSS Limited Babcock Norge AS c/o Ernst&Young, Vassbotnen 11A, Sandnes, 4313, Norway Babcock Nuclear Limited Babcock Oman LLC P.O. Box 2315, Ghala, Muscat, 130, Oman Babcock Overseas Investments Limited Babcock Polska sp. z o.o. Plac Trzech Krzyzy 10/14, 00 -499, Warszawa, Poland Babcock Project Investments Limited Babcock Project Services Limited Babcock Pty Ltd Level 9, 70 Franklin Street, Adelaide SA 5000, Australia Babcock Rail Limited Babcock Rail Ireland Limited Block 1, Harcourt Centre, Harcourt Street, Dublin, DUBLIN 2, Ireland Babcock Services Group Limited Babcock Services Limited Babcock Southern Careers Limited Babcock Southern Holdings Limited 6 Babcock Support Services (Investments) Limited Babcock Support Services Limited 8 103 Waterloo Street, Glasgow, Scotland, G2 7BW, United Kingdom Babcock Training Limited Babcock UK Finance Babcock Ukraine Limited Babcock Ukraina LLC Nazalezhnosti Maidan, Building 2, Kyiv City, 01012, Ukraine Babcock USA LLC 1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock US Investments (Number Two) LLC1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock US Investments Inc. 1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock US Investments Limited 5 Babcock Vehicle Engineering Limited 4 BNS Pension Trustees Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland BNS Pensions Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Bond Aviation Topco Limited 5 Cavendish Nuclear (Overseas) Limited* Cavendish Nuclear (USA) Incorporated 251 Little Falls Drive, Wilmington, Delaware 19808, United States Cavendish Nuclear Japan KK Regus Tokyo, Arca Central \u2013 Office 104, Arca Central Building 14F 1 -2-1, Kinshi , Sumida-ku, Tokyo, Japan Cavendish Nuclear Limited 5 Chepstow Insurance Limited PO Box 155, Mill Court, La Charroterie, St Peter Port, GY1 4ET, Guernsey Crucible Training Systems Limited* Devonport Royal Dockyard Limited 9 Devonport Royal Dockyard Pension Trustees Limited* FBM Babcock Marine Holdings (UK) Limited FBM Babcock Marine Limited Flagship Fire Fighting Training Limited INAER Helicopter Chile S.A.* 2880 Americo Vespucio Norte Avenue, Suite 1102, Conchali, Santiago, Chile LGE IP Management Company Ltd Rosyth Business Park, Rosyth, Dunfermline, Fife, Scotland, KY11 2YD, United Kingdom Liquid Gas Equipment Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, Scotland, KY11 2YD, United Kingdom Liquid Gas Equipment LLC 1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Liquid Gas Equipment (Singapore) PTE. Limited 19 Raffles Quay, 33 -03 Hong Leong Building, 048581, Singapore Marine Engineering & Fabrications Limited Marine Industrial Design Limited c/o Babcock Central Office, HMNZ Dockyard, Devonport Naval Base, Queens Parade, Devonport, Auckland, 0744, New Zealand Naval Ship Management (Australia) Pty Ltd 9, 70 Franklin Street, Adelaide, SA 5000, Australia Peterhouse Group Limited Port Babcock Rosyth Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland PT Babcock Indonesia International Sahid Sudirman Centre, 56th Floor, JI. Jend. Sudirman No.86, Jakarta, 10220, Indonesia Rosyth Royal Dockyard Limited 10 Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Rosyth Royal Dockyard Pension Trustees Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland SBRail Limited* Vosper Thornycroft (UK) Limited Babcock Africa (Pty) Limited (90.0%)7 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Africa Holdings (Pty) Ltd (90.0%)11 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Africa Services (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Dyncorp Limited9 (56.0%) Babcock Education and Training (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Financial Services (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Learning and Development Partnership LLP (80.1%) Babcock Mission Critical Services France SA (49.00%) Lieu dit le Portaret, 83340, Le Cannet-des- Maures, France Babcock Mo\u00e7ambique Limitada (90.0%) Av. Samora Machel 3380/1, Mozambique Babcock Namibia Services Pty Ltd (90.0%) Unit 3 Ground Floor, Dr Agostinho Neto Road, Ausspann Plaza, Ausspanplatz, Windhoek, Namibia Babcock Ntuthuko Aviation (Pty) Limited (66.78%)* Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Ntuthuko Engineering (Pty) Limited (46.37%)9 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Ntuthuko Powerlines (Pty) Limited (46.81%)* Unit G3 Victoria House, Plot 132 Independence Avenue, Gaborone, Botswana Babcock Plant Services (Pty) Ltd (64.82%)5 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock TCM Plant (Proprietary) Limited (90.0%)7 Unit G3 Victoria House, Plot 132 Independence Avenue, Gaborone, Botswana Babcock Zambia Limited (90.0%) 16 Arusha, Town Centre, Ndola, Copper Belt, Zambia Cognac Formation Aero (90.0%) Base A\u00e9rienne 709 Cognac 16100 Ch\u00e2teaubernard, France European Hems (Ireland) Limited (49.0%) 4th Floor, 35 Shelbourne Road, Ballsbridge, Dublin 4, Ireland European Hems Limited (49.0%) 4th Floor, 35 Shelbourne Road, Ballsbridge, Dublin 4, Ireland Joint ventures and associates (equity accounted): AirTanker Services Limited (23.5%) 12 AirTanker Hub RAF Brize Norton, Carterton, Oxfordshire, England, OX18 3LX, United Kingdom Alert Communications Group Holdings Limited (20%) Alkali Metal Processing Limited (50.0%) Ascent Flight Training (Holdings) Limited (50.0%) Cavendish Boccard Nuclear Limited (51.0%) Cavendish Dounreay Partnership Limited (50.0%) 9 Cavendish Fluor Partnership Limited (65.0%) Debut Services (South West) Limited (50.0%) 5 Merchant Square, Level 9 London,England, W2 1BQ, United Kingdom Duqm Naval Dockyard SAOC (49.0%) The Special Economic Zone at Duqm, Al -Duqm, Al-Wusta\u2019a, 3972 112, Oman FSP (2004) Limited (50.0%)1 8 Stephenson Place, Hamilton International Technology Park, Blantyre, G72 0LH, Scotland H&B Defence Pty Ltd (49%) Unit G3, 55 Blackall Street, Barton ACT 2600, Australia Okeanus Vermogensverwaltungs GmbH & Co. KG (50.0%) Vorsetzen 54, 20459, Hamburg, Germany Subsidiaries in Members Voluntary Liquidation: Babcock Assessments Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock DS 2019 Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Education and Skills Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Europe Finance Limited Trident Park, Notabile Gardens, No.2 \u2013 Level 3, Mdina Road, Zone 2, Central business District, Birkirkara CBD 2010, Malta Babcock (Ireland) Treasury Limited Custom House Plaza, Block 6, IFSC, Dublin, 1, Ireland Babcock Malta Finance (Number Two) Limited 2 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Malta Holdings Limited 2 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Malta Holdings (Number Two) Limited Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Management 2019 Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Mission Critical Services Germany GmbH Maximiliansplatz 17, 80333, Munich, Germany Marine Engineering & Fabrications Holdings Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Brooke Marine Shipbuilders Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Support Services GmbH Bismarckstra\u00dfe 100, 41061 M\u00f6nchengladbach FBM Marine International (UK) Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom INAER Helicopter Peru S.A.C. 1118 Av. Los Conquistadores, Santa Cruz, San Isidro, Lima, Peru Peterhouse GmbH Bismarckstra\u00dfe 100, 41061 M\u00f6nchengladbach Joint ventures and associates in Members Voluntary Liquidation / Dissolution: ABC Electrification Ltd (33.3%)9 Alstom, Litchurch Lane, Derby, England DE24 8AD Airwork Technical Services & Partners LLC (51.0%) PO Box 248 (Muaskar Al Murtafa\u2019a (MAM) Garrison), Muscat, 100, Sultanate of Oman Babcock MCS Ghana Limited (90.0%) No. 9, Carrot Avenue, Adjacent Lizzy Sport Complex, East Legon, Accra, Ghana Notes * Dormant entity. 1. Holding of two types of ordinary shares. 2. Holding of three types of ordinary shares. 3. Holding of four types of ordinary shares. 4. Holding of six types of ordinary shares. 5. Holding of ordinary and preference shares. 6. Holding of ordinary and deferred shares. 7. Holding of ordinary and redeemable preference shares. 8. Holding of ordinary and five types of preference shares. 9. Holding of one type of ordinary share only, where more than one type of share is authorised or in issue. 10. Holding of two types of ordinary shares, where more than two types of share are authorised or in issue. 11. Holding of one type of ordinary share and one type of preference share, where more than two types of share are authorised or in issue. 12. Year end 31 December.", "dimensions": { "concept": "ifrs-full:DisclosureOfCompositionOfGroupExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-541": { "value": "Subsidiaries, wholly owned Airwork Limited Appledore Shipbuilders (2004) Limited 1 Armstrong Technology Associates Limited* Babcock (NZ) Limited Babcock Central Office, HMNZ Dockyard, Devonport Naval Base, Queens Parade, Devonport, Auckland, 0744, New Zealand Babcock (UK) Holdings Limited 3 Babcock Aerospace Limited Babcock Africa Investments (Pty) Ltd Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Airports Limited Babcock Australia Holdings Pty Ltd Level 9, 70 Franklin Street, Adelaide SA 5000, Australia Babcock Aviation Services Holdings International Limited 12 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Aviation Services (Holdings) Limited ,1 Babcock B.V. Bezuidenhoutseweg 1, 2594 AB The Hague, The Netherlands Babcock Canada Inc. 99 Bank St., Suite 500, Ottawa ON K1P 6B9, Canada Babcock Communications Cyprus Limited Nikiforou Foka 36, Limassol 3040, Cyprus Babcock Communications Limited Babcock Company Holdings Limited Babcock Contractors Limited Babcock Corporate Secretaries Limited* Babcock Corporate Services Limited Babcock Critical Assets Holdings LLP Babcock Critical Services Limited 103 Waterloo Street, Glasgow, Scotland, G2 7BW, United Kingdom Babcock Defence & Security Holdings LLP Babcock Defence and Security Investments Limited Babcock Defense (USA) Incorporated 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock Defence Systems Limited Babcock Design & Technology Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Babcock Education & Training Holdings LLP Babcock Education Holdings Limited Babcock Engineering Limited* Babcock Fire Services (SW) Limited Babcock Fire Services Limited Babcock Fire Training (Avonmouth) Limited Babcock Group (US Investments) Limited Babcock Holdings (USA) Incorporated 7 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock Holdings Limited 3 Babcock Information Analytics and Security Holdings Limited* Babcock Information Analytics and Security Limited 5 Babcock Integrated Technology (Korea) Limited Babcock Integrated Technology GmbH Am Zoppenberg 23, 41366 Schwalmtal, Germany Babcock Integrated Technology Limited Babcock Integration LLP Babcock International Belgium SRL 11 rue de colonies, Brussels, Belgium, 1000 Babcock International Estonia OU Harju maakond,, Tallinn, Kesklinna linnaosa, P\u00e4rnu mnt 139e/2-8, 11317, Estonia Babcock International France Aviation SAS Lieu dit le Portaret, 83340, Le Cannet -des- Maures, France Babcock International France SAS 21 Rue Leblanc 75015, Paris, France Babcock International France Terre SAS 21 Rue Leblanc 75015, Paris, France Babcock International Holdings BV Bezuidenhoutseweg 1, 2594 AB The Hague, The Netherlands Babcock International Holdings Limited 1 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock International Limited 5 Babcock International Support Services Limited Babcock International US Inc 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock Investments (Fire Services) Limited Babcock Investments (Number Four) Limited Babcock Investments Limited Babcock IP Management (Number One) Limited Babcock IP Management (Number Two) Limited Babcock Ireland Finance Limited 44 Esplanade, St Helier, JE4 9WG, Jersey Babcock Korea Limited 72 -1, Shinsan-ro, Saha-gu, Busan, 49434, South Korea Babcock Land Limited Babcock Land Defence Limited Babcock M 2019 Limited Babcock Malta (Number Two) Limited 44 Esplanade, St Helier, JE4 9WG, Jersey Babcock Management Limited Babcock Marine (Clyde) Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Babcock Marine (Devonport) Limited 1 Babcock Marine (Rosyth) Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Babcock Marine Design Limited Babcock Marine Holdings (UK) Limited 5 Babcock Marine Limited Babcock Marine Products Limited* Babcock Marine Shipbuilding Limited Babcock Marine Training Limited 1 Babcock MCS Congo SA* Avenue Charles de Gaulle, PB 5871, Pointe - Noire, PB 5871, The Republic of Congo Babcock Mission Critical Services Australasia Pty Ltd Level 9, 70 Franklin Street, Adelaide SA 5000, Australia Babcock Mission Critical Services Design and Completions Limited Babcock Mission Critical Services (Ireland) Limited 13 -18 City Quay, Dublin 2, Ireland Babcock Mission Critical Services Leasing Limited Babcock Mission Critical Services Ltd Babcock Mission Critical Services Onshore Limited Babcock Mission Critical Services Topco Ltd 1 Babcock Mission Critical Services UK Limited Babcock MSS Limited Babcock Norge AS c/o Ernst&Young, Vassbotnen 11A, Sandnes, 4313, Norway Babcock Nuclear Limited Babcock Oman LLC P.O. Box 2315, Ghala, Muscat, 130, Oman Babcock Overseas Investments Limited Babcock Polska sp. z o.o. Plac Trzech Krzyzy 10/14, 00 -499, Warszawa, Poland Babcock Project Investments Limited Babcock Project Services Limited Babcock Pty Ltd Level 9, 70 Franklin Street, Adelaide SA 5000, Australia Babcock Rail Limited Babcock Rail Ireland Limited Block 1, Harcourt Centre, Harcourt Street, Dublin, DUBLIN 2, Ireland Babcock Services Group Limited Babcock Services Limited Babcock Southern Careers Limited Babcock Southern Holdings Limited 6 Babcock Support Services (Investments) Limited Babcock Support Services Limited 8 103 Waterloo Street, Glasgow, Scotland, G2 7BW, United Kingdom Babcock Training Limited Babcock UK Finance Babcock Ukraine Limited Babcock Ukraina LLC Nazalezhnosti Maidan, Building 2, Kyiv City, 01012, Ukraine Babcock USA LLC 1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock US Investments (Number Two) LLC1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock US Investments Inc. 1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Babcock US Investments Limited 5 Babcock Vehicle Engineering Limited 4 BNS Pension Trustees Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland BNS Pensions Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Bond Aviation Topco Limited 5 Cavendish Nuclear (Overseas) Limited* Cavendish Nuclear (USA) Incorporated 251 Little Falls Drive, Wilmington, Delaware 19808, United States Cavendish Nuclear Japan KK Regus Tokyo, Arca Central \u2013 Office 104, Arca Central Building 14F 1 -2-1, Kinshi , Sumida-ku, Tokyo, Japan Cavendish Nuclear Limited 5 Chepstow Insurance Limited PO Box 155, Mill Court, La Charroterie, St Peter Port, GY1 4ET, Guernsey Crucible Training Systems Limited* Devonport Royal Dockyard Limited 9 Devonport Royal Dockyard Pension Trustees Limited* FBM Babcock Marine Holdings (UK) Limited FBM Babcock Marine Limited Flagship Fire Fighting Training Limited INAER Helicopter Chile S.A.* 2880 Americo Vespucio Norte Avenue, Suite 1102, Conchali, Santiago, Chile LGE IP Management Company Ltd Rosyth Business Park, Rosyth, Dunfermline, Fife, Scotland, KY11 2YD, United Kingdom Liquid Gas Equipment Limited Rosyth Business Park, Rosyth, Dunfermline, Fife, Scotland, KY11 2YD, United Kingdom Liquid Gas Equipment LLC 1 251 Little Falls Drive, Wilmington, Delaware 19808, United States Liquid Gas Equipment (Singapore) PTE. Limited 19 Raffles Quay, 33 -03 Hong Leong Building, 048581, Singapore Marine Engineering & Fabrications Limited Marine Industrial Design Limited c/o Babcock Central Office, HMNZ Dockyard, Devonport Naval Base, Queens Parade, Devonport, Auckland, 0744, New Zealand Naval Ship Management (Australia) Pty Ltd 9, 70 Franklin Street, Adelaide, SA 5000, Australia Peterhouse Group Limited Port Babcock Rosyth Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland PT Babcock Indonesia International Sahid Sudirman Centre, 56th Floor, JI. Jend. Sudirman No.86, Jakarta, 10220, Indonesia Rosyth Royal Dockyard Limited 10 Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland Rosyth Royal Dockyard Pension Trustees Limited* Rosyth Business Park, Rosyth, Dunfermline, Fife, KY11 2YD, Scotland SBRail Limited* Vosper Thornycroft (UK) Limited Babcock Africa (Pty) Limited (90.0%)7 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Africa Holdings (Pty) Ltd (90.0%)11 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Africa Services (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Dyncorp Limited9 (56.0%) Babcock Education and Training (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Financial Services (Pty) Ltd (90.0%) Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Learning and Development Partnership LLP (80.1%) Babcock Mission Critical Services France SA (49.00%) Lieu dit le Portaret, 83340, Le Cannet-des- Maures, France Babcock Mo\u00e7ambique Limitada (90.0%) Av. Samora Machel 3380/1, Mozambique Babcock Namibia Services Pty Ltd (90.0%) Unit 3 Ground Floor, Dr Agostinho Neto Road, Ausspann Plaza, Ausspanplatz, Windhoek, Namibia Babcock Ntuthuko Aviation (Pty) Limited (66.78%)* Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Ntuthuko Engineering (Pty) Limited (46.37%)9 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock Ntuthuko Powerlines (Pty) Limited (46.81%)* Unit G3 Victoria House, Plot 132 Independence Avenue, Gaborone, Botswana Babcock Plant Services (Pty) Ltd (64.82%)5 Riley Road Office Park, 15E Riley Road, Bedfordview, Gauteng, 2007, South Africa Babcock TCM Plant (Proprietary) Limited (90.0%)7 Unit G3 Victoria House, Plot 132 Independence Avenue, Gaborone, Botswana Babcock Zambia Limited (90.0%) 16 Arusha, Town Centre, Ndola, Copper Belt, Zambia Cognac Formation Aero (90.0%) Base A\u00e9rienne 709 Cognac 16100 Ch\u00e2teaubernard, France European Hems (Ireland) Limited (49.0%) 4th Floor, 35 Shelbourne Road, Ballsbridge, Dublin 4, Ireland European Hems Limited (49.0%) 4th Floor, 35 Shelbourne Road, Ballsbridge, Dublin 4, Ireland Joint ventures and associates (equity accounted): AirTanker Services Limited (23.5%) 12 AirTanker Hub RAF Brize Norton, Carterton, Oxfordshire, England, OX18 3LX, United Kingdom Alert Communications Group Holdings Limited (20%) Alkali Metal Processing Limited (50.0%) Ascent Flight Training (Holdings) Limited (50.0%) Cavendish Boccard Nuclear Limited (51.0%) Cavendish Dounreay Partnership Limited (50.0%) 9 Cavendish Fluor Partnership Limited (65.0%) Debut Services (South West) Limited (50.0%) 5 Merchant Square, Level 9 London,England, W2 1BQ, United Kingdom Duqm Naval Dockyard SAOC (49.0%) The Special Economic Zone at Duqm, Al -Duqm, Al-Wusta\u2019a, 3972 112, Oman FSP (2004) Limited (50.0%)1 8 Stephenson Place, Hamilton International Technology Park, Blantyre, G72 0LH, Scotland H&B Defence Pty Ltd (49%) Unit G3, 55 Blackall Street, Barton ACT 2600, Australia Okeanus Vermogensverwaltungs GmbH & Co. KG (50.0%) Vorsetzen 54, 20459, Hamburg, Germany Subsidiaries in Members Voluntary Liquidation: Babcock Assessments Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock DS 2019 Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Education and Skills Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Europe Finance Limited Trident Park, Notabile Gardens, No.2 \u2013 Level 3, Mdina Road, Zone 2, Central business District, Birkirkara CBD 2010, Malta Babcock (Ireland) Treasury Limited Custom House Plaza, Block 6, IFSC, Dublin, 1, Ireland Babcock Malta Finance (Number Two) Limited 2 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Malta Holdings Limited 2 Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Malta Holdings (Number Two) Limited Trident Park, Notabile Gardens, No. 2 \u2013 Level 3, Mdina Road, Zone 2, Central Business District, Birkirkara CBD 2010, Malta Babcock Management 2019 Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Mission Critical Services Germany GmbH Maximiliansplatz 17, 80333, Munich, Germany Marine Engineering & Fabrications Holdings Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Brooke Marine Shipbuilders Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom Babcock Support Services GmbH Bismarckstra\u00dfe 100, 41061 M\u00f6nchengladbach FBM Marine International (UK) Limited 11th Floor, Landmark, St. Peter's Square, 1 Oxford Street, Manchester, M1 4PB, United Kingdom INAER Helicopter Peru S.A.C. 1118 Av. Los Conquistadores, Santa Cruz, San Isidro, Lima, Peru Peterhouse GmbH Bismarckstra\u00dfe 100, 41061 M\u00f6nchengladbach Joint ventures and associates in Members Voluntary Liquidation / Dissolution: ABC Electrification Ltd (33.3%)9 Alstom, Litchurch Lane, Derby, England DE24 8AD Airwork Technical Services & Partners LLC (51.0%) PO Box 248 (Muaskar Al Murtafa\u2019a (MAM) Garrison), Muscat, 100, Sultanate of Oman Babcock MCS Ghana Limited (90.0%) No. 9, Carrot Avenue, Adjacent Lizzy Sport Complex, East Legon, Accra, Ghana Notes * Dormant entity. 1. Holding of two types of ordinary shares. 2. Holding of three types of ordinary shares. 3. Holding of four types of ordinary shares. 4. Holding of six types of ordinary shares. 5. Holding of ordinary and preference shares. 6. Holding of ordinary and deferred shares. 7. Holding of ordinary and redeemable preference shares. 8. Holding of ordinary and five types of preference shares. 9. Holding of one type of ordinary share only, where more than one type of share is authorised or in issue. 10. Holding of two types of ordinary shares, where more than two types of share are authorised or in issue. 11. Holding of one type of ordinary share and one type of preference share, where more than two types of share are authorised or in issue. 12. Year end 31 December.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-10": { "value": "33 Wigmore Street London, W1U 1QX", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:213800TSKOLX4EU6L377", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } } } }