BAE Systems recently unveiled its annual financial results, highlighting a year of substantial growth for the firm.
The company reported a 9% increase in sales, totalling £25.3 billion, and an 8% rise in operating profit to £2.6 billion for the period ending December 31.
Alongside these financial milestones, BAE Systems noted expansion in its order book, which now stands at £58 billion, up £9.1 billion from the previous year.
Charles Woodburn, BAE Systems Chief Executive, shared his enthusiasm for the company’s performance over the past year:
“We’ve delivered a strong operational and financial performance in 2023 and I’m extremely proud of the way our people have delivered cutting-edge equipment and services to our customers, working together with partners across our supply chain. Our performance, combined with our global footprint and record order intake, means we’re well-positioned for sustained growth in the coming years. We’ll keep driving the business forward, investing in new technologies, facilities and our people. This will help us deliver on our order backlog and help ensure our government customers stay ahead in an uncertain world, whilst delivering increased value to our shareholders and the communities where we operate.”
“The UK Type 26 programme continues and construction is underway on the first four City Class Type 26 frigates, with a focus on skilled and experienced resource availability, including within the supply chain. HMS Glasgow is progressing through the key stages of outfit, test and commissioning, while HMS Cardiff is being prepared to enter the water for the first time in 2024. Following steel cut in June 2021, HMS Belfast continues steelwork construction, while the initial unit construction for HMS Birmingham began in April and is well underway.”
On the new shipbuilding hall, the report states:
“We continue investing in our people and facilities to better enable us to deliver on our customer commitments and secure the long-term future for complex shipbuilding in Glasgow. Construction of a new ship assembly hall in Govan is well underway, and the new Applied Shipbuilding Academy in Scotstoun is planned to open in 2024.”
“with a focus on skilled and experienced resource availability, including within the supply chain”
Yep that’s one of the key bits !
Mmm I’ve read hundreds of blurbs like this over the years and they tend to come in 2 forms. They are either overhyped, positive and upbeat updates of promised capability and delivery. So up beat and confidant. Or the more nuanced ones which are more low key with the true meaning hidden in plain sight but it covers the rear ends. This is one. In plain words my interpretation would be. Things are going OK and we are making progress, no massive issues but we are suffering due to supply issues and a shortage of sufficient skilled workers. The main… Read more »
100%
T26 B3 for me contract signed before Labour get in.
Not going to happen, for sure!
Yep!
Yes, or another five T31’s BUT…..🙄are we ever likely to see them?
Except, the 26s would continue production at Big and Expensive until the T83 came along.
Agree. We should prioritise more T26’s uparmed and increase length by 10m. Length increases stability, speed, economy and armament. What’s not to like just like the batch 3 cities of 1938. (HMS Edinburgh and HMS Belfast 1939).
Presumably (?) they are planning that anyway. The T31 idea is something the Tories could do now without any expenditure before the election. A vote winner and more importantly a committment to the Royal Navy. I also like the stretched T26 idea as a AA Destoyer.
As I have said before I wouldn’t order any more T31 until we get the 1st one finished, through its trials and commissioned. Rosyth and Babcock have never built from scratch any ships, so are an unknown quantity. Also with all the extras added they aren’t a cheap option anymore. There is also the long term future of U.K Naval Shipbuilding to consider. BAe has heavily invested in the New Build hall and just as importantly an advanced Steel cutting and fabrication facility. What comes next after T26/31 (T83) has to be considered and the simple fact is that BAe… Read more »
In reality we do need two frigate lines…it was only the fact we have spent that last 40 years reducing hull numbers that we have not…if you take a basic requirement of 24 escorts replaced every 20-25year then at a minimum you need one frigate commissioned every year, to maintain that level of output you really do want two lines running..especially if you want some spare capacity if the risk goes up or they have a sudden need to replace…..in reality it would probably be more cost effective if escorts were replaced after 15-18 years…for that you want to produce… Read more »
Its possible we could increase production massively if we just keep the Clyde and Rosyth yards open a don’t stop building until the Type 83 comes out sometime in the 2040’s.
Better still in my opinion would be a type 57, a T26 which incorporates an ABMW capability. To those who say it would cost mega I say if we continued to run them off without break they would cost less.
(Type 57 H….z Beenz!, Just joking!)
Firstly I am in the habit of working with known facts and not what ifs. At present the reality is a surface escort fleet of 19 and no one of any importance in either main parties is making any noises to increase it. A few years ago Bo Jo inserted an unfunded ambition to add 5 additional T32 frigates. But like the other unfunded Ambition to raise Defence spending to 2.5% its just an aspiration with nothing firm behind it. I really wish that wasn’t today’s reality but it is and that’s the info I’m working with. At 19 BAe… Read more »
The last official announcement on the Type 32 was that it was still going ahead, so at present there is still a 24 escort plan in place. The NAO keeps reporting there is no budget but every time they are asked the government still states the T32 are part of the planned assumptions for 2030/31.
Yep but unfunded.
Indeed but in reality all projects are unfunded this far away from contract signing….the T32 will probably not be formally funded until well into the later 2020s. although I think it will probably just end up being a batch 2 T31 as I think the RN will need to keep hull types to a minimum to increase hull numbers…and the reality is 19 hulls was never a number that was reached through carful review of needs even in a peace time world..infact the last serious strategic defence review that actually looked at realistic force requirements against threat was the 1998-2002… Read more »
Interesting conversation and one bit made me chuckle. You wrote “as the second navel power in the liberal democracies power block”. Well I suspect if you discount CASD (which is something no one would want to use) then IMHO the JMSDF takes that honour by quite a large margin and is expanding. We still have just 19 as the present funded target with the Bo Jo 5 T32s as an unfunded aspiration in the NSBS. If there is any serious intention to increase to 24 then that needs full funded contracts no later than 2027-2030. Otherwise the supply chain gaps… Read more »
Re that Japanese navy, in reality it is a very powerful force but it’s a western pacific only force, it has not real ability to project significant power beyond the western pacific…it does not have SSNs, it’s not got large fixed wing carriers, or a significant amphibious force ( it’s flat tops with either be ASW, sea control or amphibious but not all at the same time) and it has nothing to compare with the RFA…so yes a a powerful force of surface combatants but it is still only a frigate navy, without the other elements that make a blue… Read more »
Logically you’re right but there will not be any orders for “big” ships at Bae for al least another five years. My thought was entirely along the lines of bolting on to the Babcock build to maintain that facility and bring the escort fleet up to 24. Cynically, and I hold my hands up, it would then be down to Labour to cancel in an area they might rely on for votes. They would hopefully think twice.
Yes. The “old” Black Swan concept was in many ways ahead of it’s time. Essentially, if I remember correctly, a flat top a bit like the old Harrier Carrier (5/6000 tons?) kitted out for systems rather than onboard weapons. In modern terms anything with a rotos, manned or unmanned, USV’s, sub-surface etc.
My father spent the war on Stork and Starling, both Black Swan class with Captain Johhny Walker, mostly in the Atlantic or Arctic so I rather like the name too.🙂
The outfitting is always the key.
Particularly the pre-outfitting of the blocks as we both know.
If the blocks are pre-outfitted to a really good state then progress will be good on fitout if there are no goofs or changes of mind and heart.
Given the very rapidly evolving threatscape I would be slightly surprised if that has not lead to a few changes. Fortunately T26 had quite a lot of high end weapons systems baked into them from the off.
SB I am waiting to be convinced, but so far I am seriously unimpressed. The build schedule is actually slower than the proceeding Danish Iver Huitfeldts.
Am I right in thinking you know quite a bit about the new BAe Steel Fabrication Facility at Govan ? That intrigues me,
This year? , Cardiff looks ready to float now, I would have thought within a few weeks at the most.
Just waiting for some Grease for the prop couplings……😎
Which is environmentally friendly too both applier and nature 🤔
Apparently It’s on a ship that is currently sinking 40 miles off Mocha…..😎
Can the year get any better 💣
Mate, If you only had clue just how my year is going….. Father in law died in December, Our Ginger Tom Cat too….. Mother three days ago Brother just a while back, Our beautiful… the most friendly and loving cat i’ve ever known female Cat got knocked down yesterday and her brother is being put down tomorrow……. Tommo mate…. I thank you for being just so nice on here….. There are a fair few reasons i like to visit this site, ….. You are one of them….. I also love DM’s input and a fair few more too…….
Oh Frank, that’s awful. Your family really is being shaken. Well done for sounding positive when you post on here. I’ll be praying for you.
🙏 Likewise 🙏
So sorry too hear all that Frank thoughts and prayers along with Frank62 keep on posting
That is a really awful run of events.
Keep posting on here.
😢🙏
Thanks Guys, sorry, I was just Venting…
👌
That’s a difficult year Frank, a very difficult year…I hope you find some brightness in the year to come.
👌
👌
Same, my condolences.
So sorry to hear about your year. Sunday you will be in my prayers (yep even old Engineers pray).
Goose fat, excellent for the spuds. 😁🙃🕳️Back to me hole.
Don’t let PETA find out 🦆🦆🦆🍽🍽🍽 could find a Goosec
Still 6 months of work ahead on her!
She looks just as complete as Glasgow when they floated her.
Don’t forget there will be a lot of work going on internally that we can’t see.
I assume the internal structures are fabricated as part of the assembly blocks, also assume that a lot of the internal fitting out of anything that is not hull fabrication is done at Scotstoun.
It’s not an ideal way of building a ship, but as always the 1st is the worst and then it all ramps up. Looking at how they are doing it 1,2,3 will be slow (but each better than the one before). That build hall and the advanced steel working will really get it cracking on.
Similar to the facilities Babcock have already built at Rosyth.
Birmingham is in progress too now. , from the last few photos that Babcock released Venturer’s lower hull looks mostly complete, it could do with a lick of paint though.
Can’t come soon enough. A 2nd T26 in the water will be encouraging. The 1st T31, HMS Venturer is also supposed to be launched this year.
That first T31 won’t be a fast fitout…..I don’t think the trials dates of #1, 2 & 3 will be much different.
Oooh. Bigger is better. More room to put new stuff in later on. More resilient to damage…more comfy for the new sailor types…better sea keeping….more stable platform….er….more room to put guns and bombs….bigger platform for chopper enabling operation in bad weather….allowing a higher radar mast…bigger bunkers for extended operation…bigger gym..
Probably doesn’t cost much more than a smaller ship percentage wise…air is free and all that.
AA
Exactly!
Quite right. I read somewhere, and I find it hard to credit, that some of the new recruits are demanding beds, on board, rather than sharing hammocks three deep, a hundred to the room. Others are asking for an indoor privvy rather than just taking a dump over the lee like a proper sailor. Then when you come alongside, workmen actually want to be able to see what they are doing when they maintain the ship and are demanding space to walk when they could perfectly well crawl through the bilges. It’s not enough for them that an engine makes… Read more »
Will the new ships have nail parlours and therapy cats too do you think?
Yes, yes, bring back the cat!
Imagine a cat in the OP’s room, carnage!
‘o nine tails..I assume…that’ll learn ’em!
😂😁👍
I still think that HMS Warrior was a step too far in terms of modernising the fleet and don’t talk to me about bloody Dreadnought.
Months away from a crunch general election. The only safe prediction is a cut in defence spending. But what and where?
Disagree. The economy is predicted to more or less flatline for a year or two but interest rates will be lower. My bet is that an incoming government will feel able to borrow to invest. I see continued investment in manufacturing job creation e.g. CR3, Ajax, Boxer, PVs, Archer, AS/90, replacement will all generate significant UK manufacture. Ditto shipbuilding. I think a labour gov will have a more European focus and be good for the army and the navy.
PVs?
Sorry, patrol vehicles.
Thanks. 😊
Patrol Vehicles? Vessels?
LPV project etc. Replacement of Mastiff etc
So… Light Patrol Vehicle?
I think all the protected mobility vehicles are going to be replaced…as reported in ukdef. The challenge is to get the most UK industrial content.
I agree that a Labour government shouldn’t be bad for MOD- mainly because of the skilled jobs that continued (and expanded?) investment in the defence sector bring. Voters in the north have become a bit of a decider, as we saw last election when they all went temporarily blue, and right now I think they want to see investment from Westminster in their regions for infrastructure and industry- especially after the HS2 U-turn.
Labour in the past did authorise two aircraft carriers and go to war a couple of times under Blair and brown . Hopefully the strong union element in labour will focus labours mind on ensuring that the conservatives plans with ships planes army is maintained and developed further, as I think there is a rough plan thats half decent now it just needs speeding up and some tweeks. And to organise personal which will be a challenge for Labour if they get in power
Quite, it has always been a bit confusing why they’re seen as the anti-defence party when it’s in their interests to have a strong domestic manufacturing sector.
You don’t see either party trying to differentiate themselves on defence. That’s because the voters are going to cast their vote on the economy, NHS , immigration. And also when push comes to shove in a war scenario the nation pulls together. The only difference I see between the parties on defence is that Labour will prioritise Russia as the main threat – militarily- rather than China. But frankly that’s happening anyway. The US republicans are having problem coming to terms with the fact that Putin is an existential threat …whereas the immigrants across the Mexican border actually aren’t. I… Read more »
I agree that the voters aren’t going to consciously vote on defence issues. But Labour’s support comes (traditionally) from the areas and groups of people involved in industry- and defence is an ideal place to re-invest in exactly that. Higher tech jobs, because weapons are more complex these days, better paid because modern weapons aren’t cheap. We can’t be another China, because we can’t produce in high enough volume to cover high wages with low cost items. But we can be competitive in higher tech sectors, if the government could be bothered- that’s where I think defence is an easy… Read more »
Agree all points. In fairness to the Tories since they have ditched Johnson and Truss they have been governing better. Sunak did well with the Windsor accord but he is on borrowed time. The ultra Tory wolves will get him eventually.
The enemy is within; the SNP want to break up GB and by inflaming Islamist sentiment they damn near did it this week in parliament. Total irresponsibility.
“A deity out of diversity”….very lyrical…
A modest attempt at alliteration:-)
It was very good…you definitely get points for that…
The issue with making something a deity is that you have to sacrifice people and principles to it 😕
Depends if your the Church of England…in which case you can sort of ignore it or consider it like an uncle no one has seen for years.
Every Armistice day we and the whole of Europe remembers those who sacrificed themselves for comrades, family, the greater good, a way of life. I don’t really understand the proposal to remove Christian elements from armistice services, since they are essentially an affirmation of the belief that ‘greater love hath no man than this, that a man lay down his life for his friends.’ They are who we are as a people.
Diversity is a strength in so far as it brings the new energy and talents. Issues arise though when it brings values which are not congruent with host culture. Mostly there is no problem. Most immigrants want to work hard and are committed to family values etc. However there are some who have an agenda – to impose their ideology in the UK. Hence the need for the Prevent program…or should that be Repent 🙂
IMHO borrowing isn’t the answer, we pretty well maxed it out during COVID and the energy crunch, and it makes us incredible vulnerable if inflation rises due how our debt is structured. Getting real Growth back into the economy may be slower but if GDP could grow 3 or 4% each year with inflation at 2% then the Defence budget will grow. If I were the Man in number 11 in March, I’d reduce corporation tax for certain Industries such as High Tech, Renewables and Pharmaceuticals but I’d start with pinching back the 20 billion a year the ROI nabbed… Read more »
Interesting observation. Pretty sneaky the Irish 🙂 I believe Labour have stated they would leave corporation tax unchanged at the present rate for a full parliament. I’m not qualified to make expert pronouncements on economics so I’d best leave it there. That said, as voter I’m prepared to buy into the labour idea that investing in infrastructure is a better way to get good quality growth than reducing taxes. Also having a focus on securiy sounds good; food, energy, defence. Heaven knows the county is falling apart. Where I live you the A road is flooded. The bonus is you… Read more »
No! Extra space is required for sound reducing measures.
Shame we couldn’t order 2 more Type 26s suggested to Australia to just help with anti-air warfare to assist the Type 45.
The T26 was not intended as a AAD/AAW vessel. Designed to work best to hunt subs.
I understand that, but as a plug to assist the type 45s and anti air hull gap.
Interesting idea. 👍 Perhaps HMG could replace Oz in contract to produce several copies of the Australian variant of T-26? Would tend to believe HMG would enjoy maximal negotiating leverage at that point.
I wouldn’t copy that variant just more of what we are already building but maybe replace the mission bay with extra CAMM VLS. That ads mass to AD.
Not an expert but seems to me the T26 has the hull form of a frigate; long in comparison to the beam; designed for acceleration, manoeuvrability and quietness; not really optimised as a platform for heavy radars and lots of VLS, although you could sacrifice the mission bay I suppose. By contrast the T31 though shorter is derived from the Iver Huitfeld which was AAW ‘frigate’. I’m guessing it would be a more stable launch platform for missiles. So if you wanted to augment T45 with extra interim AAW capability I wonder if T31 wouldn’t be a better choice. Cheaper… Read more »
Wish I’d read further down. You’re probably on to a winner with the T31 being a better suited vessel.
Ultimately i can see T83 looking more like a T45 on steroids than a T26
Yes, I agree.
Your right you are guessing the widest is the T45 at 21.2 m, then the T26 at 20.6m and finally the T31 at 19.8m. But I don’t think adapting either into an inferior AAW ship is a good idea, it’s unnecessary as Tech is moving on. We need far more missile mass within our surface escort fleet it doesn’t have to involve a redesign which will probably be more expensive than a new design. I’d order 4 extra T26, but without the mission bay, fit 64 extra VLS as per the BAe proposed T26 AAW concept and stick with CAMM… Read more »
I wonder if the 3 GT / DG sets were ordered up ?
As far as I can see though the beam just isn’t wide enough for a nice tall search radar on T26, which also seems to be the problem the Aussies are having. AAW ships need wider hulls for stability, unless we start fitting very large stabilising fins to make up for it.
You’re the first I’ve seen complaining that getting a bigger ship than expected is somehow worse. If it is a cruiser, excellent! Just don’t tell the Treasury
Bigger takes about the same amount, costs a little more, makes through life costs soooo much lower
…and five years to fit out?
It’s great to hear HMS Belfast is being worked on, her 12×6 inch guns could come in handy soon….. 🙂
Always thought those should be pointed at the Treasury.
😂
T23 Frigate 4,900 tons 12 commissioned from the Clyde in 12 years. T45 Destroyer 8,500 tons 6 commissioned from the Clyde in 5 years. Big difference fitting any extra weapons on a T23 was extremely difficult as they were designed with very little margin for growth. The same as every other previous Post War design, all designed down to the minimum size to accommodate their immediate requirements. T45 much bigger design with room for growth designed in from the start. Extra crew, DG, switch room, extra VLS for more missiles, NSM. No big deal as it was designed to accommodate… Read more »
T45 was built in blocks. Just like QE class.
Yep and so were the last of the T23s at Scotstoun, but the T45 build process was incredibly complex and the fact BAe actually pulled it off was damned impressive. Daring was unique as she was 1st of class and assembled on the old covered slipway at Scotstoun. And due to the river limits she had to be launched light and using @800 tons of drag chains. As for the rest they were assembled on the slipway at Govan, some blocks were barged in and inserted sideways at the mid point of slipway then skidded into position and welded up.… Read more »
I did read a very good research paper on navel design that basically evidenced that any hull under 5000 tones was not cost effective..it went through the whole US paradigm of larger escorts vs European small sub 5000 ton escorts and showed how much more mount European navies had wasted on refits etc vs the US.