BAE Systems on track for growth

In its latest market update, BAE Systems has announced that it is on course for another year of growth as military budgets around the world continue to increase.

The report outlined that its air, maritime, electronic systems and intelligence and security divisions continue to perform strongly, whilst highlighting favourable news from the USA where the new president’s budget request for fiscal year 2022 is expected to include top line defence funding of $715bn.

In the UK, the publication of the Defence Command Paper delivered a positive update with renewed commitments to BAE's major long-term programmes in complex warship, submarine and combat aircraft design and build.

In Europe, a number of nations including Germany and France continue to increase their defence budgets to address the threat environment and move towards their 2 per cent of GDP NATO commitments.

BAE Systems also announced that the 2020 final dividend of 14.3 pence per share will be paid on 1 June 2021.

Charles Woodburn, BAE Systems chief executive, said: "I am proud of how our employees have continued to perform and adapt this year, against the backdrop of the global pandemic. Our focus for 2021 is driving operational performance, progressing our sustainability agenda and investing in and developing the technologies to meet our customers’ needs.

“Our good operational performance underlines our confidence in the full year guidance for top line growth and margin expansion and our three-year cash targets. Strategically, our geographically diverse portfolio is aligned to growing defence budget areas; we’re ramping up investment in self-funded R&D aligned to customer focus areas and we’re leveraging our leading capabilities in evolving markets to ensure we’re increasingly well placed to deliver for all our stakeholders."

• For further Lancashire business news, advice and analysis subscribe to Lancashire Business View or join the LBV Hub from just £2.50 per month. Click here to subscribe now.