BAE Systems release half-year financial results

BAE Systems has reported rising sales and increased profits for the first half of 2017.

Charles Woodburn, Chief Executive, said:

“BAE Systems’ performance in the first half was consistent with our expectations and guidance for the year. We have a sound platform for medium-term growth underpinned by a clear and consistent strategy.

Strong programme execution, technology and enhanced competitive positions will be key in driving the business forward, and we will continue to focus on efficiency and meeting our customers’ affordability challenges. With the expected improvement in the defence budget outlook in a number of our markets, the Group is well placed to continue to generate good returns for shareholders.”

Highlights for the first half of 2017 from the BAE report

• Work continued to ensure Portsmouth Naval Base is well prepared for the arrival of HMS Queen Elizabeth later this year.  Milestones include the completion of a dedicated 70,000 square metre Centre of Specialisation containing facilities such as logistics support, security building, visitor centre and key infrastructure to support the carrier.
• In March, the Solent Local Enterprise Partnership awarded the business £457,000 to design and deliver the UK’s first dedicated autonomous systems testing service. Together the Solent LEP and partner organisations are investing £1.5 million in this project, the first of its kind in the UK.
• Also in March, BAE Systems procured 48 electric vans to join the Portsmouth Naval Base fleet, supporting the Royal Navy’s operations. It is predicted they will reduce carbon dioxide emissions from the naval base’s vehicle fleet by around 40 per cent and will save an estimated £360,000 in fuel and other costs over the duration of the contract.
• HMS Westminster’s rededication ceremony took place in March following the completion of her multimillion pound maintenance period last year, which included the successful installation of the Sea-Ceptor missile system. This marks her return to the Royal Navy’s surface fleet to carry out global operations.
• BAE Systems has committed to sponsoring 20 activities in the Solent region to date for 2017, supporting our customer, our heritage and STEM activities. This includes events such as the Royal Navy’s UTC Engineering Challenge, Armed Forces Day, as well as helping to save the CMB 331 – the UK’s sole surviving WWII coastal motor boat.
• Employees in the Solent region have raised more than £4,300 for a variety of charities, including Blesma, Help for Heroes, Hounds for Heroes, the Royal Navy Royal Marines Charity and SSAFA. Our employees have also committed to over 850 hours of volunteering thus far.

David Mitchard, Managing Director, BAE Systems Maritime Services, said:

“2017 is a landmark year for the Royal Navy and we are extremely proud of the role we play in supporting, maintaining and upgrading the Royal Navy fleet. 

A great deal of work has taken place to ensure Portsmouth Naval Base is ready to receive HMS Queen Elizabeth. We look forward to sharing in a moment of national pride and welcoming her new home on the south coast.”