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Defence company Babcock delivered a cautious outlook on profit after flagging £1.7 billion of asset writedowns following a review of its contract profitability and balance sheet.
'We are cautious about progress in FY22 profitability as it will be a year of transition,' the company said.
'The early results from our reviews show significant write offs and a smaller ongoing reduction in the profitability of the group,' it added.
The contract profitability and balance sheet review (CPBS) was expected to result to cut underlying operating profit by £30 million each year.
Draft unaudited management results estimate FY21 underlying revenue of £4,690 million, down from £4,872 million last year, with underlying operating profit - before CPBS impacts - of £307 million, down from £524 million
The company also set out a plan to streamline its business by selling certain, anticipating proceeds of at least £400 million over the next 12 months.