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Defence company Babcock unveiled a turnaround plan to improve performance after reporting wider annual losses amid a £2 billion impairment.
For year ended 30 June, pre-tax losses widened to £1.72 billion from £88.9 million year-on-year as revenue fell 3% to £4.18 billion.
Total impairments and charges of £2 billion, driven mainly by impairment of goodwill and acquired intangibles.
'Following extensive reviews, we now have a turnaround plan to restore Babcock to strength without the need for new equity,' the company said.
As part of its turnaround plan, Babcock said it would focus on being an international aerospace, defence and security company. The plan would also aim to deliver annualised savings of about £40 million.
Looking ahead, the company the company said that while fiscal 2022 will benefit from operating model savings, it will be a year of transition.
'The impact of COVID-19 on performance in FY22 is uncertain. While activity levels have broadly recovered, the additional costs from operating in a COVID-secure way remain,' the company said.