Our Strategy

Our Purpose

Creating a safe and secure world, together.

We are an international aerospace, defence and security company. We have a leading naval business, and provide value add-services across the UK, France, Canada, Australasia and South Africa. We also operate in, and export to, additional markets.

Our strategy is to focus on our core activities in the UK, using our capabilities to work on exports from the UK and to develop our international presence in our target countries. We operate in attractive markets and are positioning ourselves for future growth.

Supported by Our Five Strategic Actions:

Align the portfolio

We will align the Group’s portfolio by divesting certain businesses to reduce complexity, increase focus and improve the effective use of the Group’s capital by disposing of the businesses that are nearer the perimeter of our strategy

This is expected to generate disposal proceeds of at least £400 million over the next 12 months

Implement our operating model

We are creating a business that is more efficient and effective

A flatter structure will simplify how we operate, improve communication and increase business flexibility and our responsiveness to market conditions

The new structure will reinforce a one company culture and remove duplication

This new model will generate annualised cost savings of approximately £40 million, helping to create a stronger Babcock

The new model will also help our internal and financial controls

Roll out a new people strategy

We will develop an organisation that shares capability, talent, innovation and best practice across the Group and removes complexity

We will communicate our purpose and creating a culture that better supports and empowers our people

We will create an agile and inclusive workplace, which supports work-life balance

We will improve diversity across the Group

We will take a new approach to talent, learning and performance

We will harmonise people, policies and processes

Develop our ESG strategy

We will reduce emissions and setting science-based-targets to get to net zero by 2040

We will integrate environmental sustainability into programme design to minimise waste and optimise resources

We will make a positive difference to the communities we’re proud to be part of and provide high-quality jobs that support local economies

We will be a collaborative, trusted partner across the supply chain, helping to tackle common challenges

We will ensure the safety and wellbeing of all our people

Explore growth opportunities

The markets we address offer favourable medium-term growth. We will focus on opportunities for defence and value-add services in the UK, France, Canada, Australasia and South Africa

Growth in the UK will mainly come from market growth, given our strong market position today. There are areas where we will also look to increase our share, for example defence, secure communications and shipbuilding

Growth in international markets can come from market growth and an increase in market share. We are bidding for contracts that, if won, would offer significant in-market growth, for example pilot training in Canada

Our products have further opportunities for growth in our equipment and systems exports and international demand for the Type 31 platform


Returns for our shareholders

A return to growth with improving margins and better cash conversion

Improved delivery for customers

Consistent delivery and partnering with customers to solve their challenges

A better place to work for employees

An open, collaborative and diverse workplace that engages our employees