BAE posts £1.7bn increase in sales
BAE Systems has posted a seven per cent increase in sales for the 2019 financial year, climbing from £18.4bn to £20.1bn.
The increase helped operating business cash flow increase by £314m to £1,307m, while net debt decreased to £743m from £904m.
The highlights of the air division, which relates to work carried out at the company's Samlesbury and Warton sites, include continued work delivering Typhoon aircraft to Qatar, the first four Hawk aircraft assembled in Saudi Arabia were accepted and entered service in-Kingdom, and the design and production readiness phase of the Hunter Class programme for the Royal Australian Navy continues to make good progress.
BAE also announced that it has reached an agreement with the Trustee Board of the combined pension scheme to accelerate its deficit recovery plan. The deficit at October 31, 2019, was £1.9bn. £1bn will be paid off in a lump sum, with additional sums payable in coming years.
There was a final dividend of 13.8p, making a total of 23.2p per share for the year, an increase of 4.5 per cent over 2018.
Charles Woodburn, Chief Executive, said: “2019 has been a year of significant progress for BAE Systems. We delivered a good set of financial results in line with guidance, growing sales and earnings, with improved operational performance and increased investment in the business to underpin our growth outlook.
We delivered a good set of financial results in line with guidance, growing sales and earnings
"Strategically we took a number of actions to strengthen the portfolio and the pensions agreement is good for all stakeholders. These will help to accelerate our strategy and further our growth outlook. We have a large order backlog and remain focused on strong programme performance to deliver a sustainable business model with enhanced financial performance.”
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