Royal Navy: Pivotal update issued as work to build Type 31 ships HMS Venturer, Active and Formidable continues

Advanced Type 31 warships are being produced by engineers at Babcock International at its Rosyth dockyard in Fife, Scotland. Three ships are currently being produced simultaneously, with the company announcing an update in its latest set of accounts.

The report said the superstructure of HMS Venturer, the first of five General Purpose vessels, is “largely complete”, which includes the majority of welding outfitting. HMS Active had moved through the structural consolidation phase. Babcock said engineering work is progressing faster due to workers having previous experience building HMS Venturer.

Construction work has begun on the third of five Type 31 ships HMS Formidable. Pictured is work continuing on HMS Venturer(top) and HMS Active in the Venturer building ahead of the Steel Cut ceremony for the Royal Navy's third in class Type 31 frigate, HMS Formidable, at Babcock International Group, in Rosyth. | Andrew Milligan/PA Wire

Work has also started on HMS Formidable. “The Type 31 Inspiration Class frigate programme continues to make good progress, with three ships now in simultaneous construction following the first steel cut of HMS Formidable in October 2024,” Babcock said. “We have increased the industrial workforce to over 900 people, with further recruitment planned. Through the Type 31 programme and other AH140 programmes, we are building a world class shipbuilding capability that will position us for future global naval opportunities.”

The five Inspiration-class warships, as well as eight Type 26 submarine-hunting frigates being built by BAE Systems, are due to replace the five current Type 23 frigates. This includes, HMS Venturer, Active, Formidable, Bulldog and Campelltown. They will be expected to conduct several different operations such as defence engagement, humanitarian support and intercepting criminals at sea. The ships will have a top speed of more than 26 knots – equivalent to nearly 50kmph – and accommodate around 100 personnel.

Babcock International has generated just over £2.4bn in sales revenue as of September 24, rising from just over £2.1bn in 2023. They brought in £183.8m in operating profit, compared to £144.2m last year. Despite this strong financial performance, they have struggled with the Type 31 project. The company said the outturn for the Type 31 contract, the actual construction cost of a project which is calculated once it has been completed, would be roughly £1bn.

Construction work continues on HMS Venturer(top) and HMS Active in the Venturer building ahead of the Steel Cut ceremony for the Royal Navy's third in class Type 31 frigate, HMS Formidable, at Babcock International Group, in Rosyth. | Andrew Milligan/PA Wire

Babcock added that this is due to the contract being impacted heavily by external factors such as Brexit, Covid-19, rising costs of raw materials and UK Labour Shortages. They had to launch an operational improvement programme to counteract this. The Ministry of Defence (MoD) were in dispute with the defence giant after the company confirmed a £90m loss on the project in March 2024, but this resolved.

Babcock said: “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.”

Chief Executive David Lockwood was pleased with the company’s standing. He added: “This is another strong set of results, with continued positive momentum across the Group. Our operational and financial performance in the first half of the year underpins my confidence that we will deliver our expectations for the full year, as we progress towards our medium-term guidance.”