The pension fund for workers at Rosyth Royal Dockyard soared to a £4.3m surplus last year, just months after industrial unrest over increased contributions by workers.

The pension fund for workers at Rosyth Royal Dockyard soared to a £4.3m surplus last year, just months after industrial unrest over increased contributions by workers.

Accounts for the year to March 31, 2008 also show that the company, which suffered strikes last summer as staff complained of a 4.5% rise in pension contributions and an increase in the retirement age to 65, saw operating profits soar from £2000 to £4.1m.

With bond market conditions in the company's favour, and total contribution rates increased to 22.4% of pensionable pay, a £8.7m deficit in 2007 was turned into a £4.3m surplus, according to the filing at Companies House.

The accounts revealed that Rosyth, which will be one of the major beneficiaries of the government's new aircraft carrier programme announced last week, saw profits rocket as turnover rose 12.1% from £40.2m to £45m, while costs nudged up just 1.7% to £40.1m.

The company's workforce over the period fell from 971 to 944.

The retained profit of £5.7m and an actuarial gain on the pension scheme of some £5.2m helped boost the company's profit-and-loss reserve from £18.7m to £25.3m.

The company, which is owned by Babcock International, last week secured a £675m deal to construct part of the Royal Navy's new giant aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales.

The 65,000 tonne ships will be built in modular sections. While work on the ships' hulls will be carried out at Govan, Barrow and Portsmouth, the bow sections and final assembly will take place at Rosyth. The ships will be launched from the Fife yard in 2014 and 2016.

Babcock International, which also owns Faslane dockyard, reported a 53% rise in pre-tax profit to £95.5m when it announced its results in May.

No-one from Rosyth or Babcock could be reached for comment.