SkyWave Radio UK

Your Station Your Way!

Current track

Title

Artist

Current show

All The Hits!

00:01 23:59

Current show

All The Hits!

00:01 23:59


£1bn revenue growth for BAE Systems despite Covid pandemic

Written by on February 25, 2021

Leading national defence and security company BAE Systems has announced its full year results for 2020 with revenues growing by £1billion despite the ongoing coronavirus pandemic.

The company is the largest private sector company in Lancashire with its Warton and Samlesbury sites employing the vast majority of its 12,500 UK employees in its Air sector.

Chief Executive Charles Woodburn has praised the “outstanding effort” of staff, as well as the cooperation of customers, suppliers and trade unions against a “challenging backdrop” of the pandemic.

Despite the coronavirus crisis devastating the world from early 2020, BAE Systems have delivered a “strong set of results”.

The company says its aim for 2021 is to continue driving operational performance, progress its sustainability agenda and invest in high-end discriminating technologies to meet its customers’ priorities, in order to continue growing the business.

Mr Woodburn said: “Thanks to the outstanding efforts of our employees and close cooperation with our customers, suppliers and trades unions, we have delivered a strong set of results against a challenging backdrop of the global pandemic. Throughout 2020, we focused on keeping our people safe and supporting our communities, whilst continuing to deliver for our customers.

“In 2021, we will continue to drive operational performance, progress our sustainability agenda and invest in high-end discriminating technologies to meet our customers’ priorities, which will ensure we are well positioned to grow the business and contribute to the economic prosperity of the countries in which we operate.”

Results

According to the International Financial Reporting Standards (IFRS), revenue was up from £18,305m in 2019 to £19,277m in 2020. The company’s own finances, determined internally, show a sales increase of £800m, up from £20,109m to £20,862m.

The IFRS also recorded an operating profit of £1,930m – up from £1,899m the year before.

Basic earnings per share have dropped from 46.4p to 40.7p.

Net cash flow from operating activities also dipped from £1,597m in 2019 to £1,166m in 2020, while its order book went from £37.2bn to £36.3bn.

Its underlying EBITA of £2,117m has risen to £2,132m.

A remaining order backlog of £45.2billion remains, with its order intake increasing by £20.9bn.

As well as its Warton and Samlesbury sites, BAE System also has sites elsewhere in the country including in Brough, RAF Coningsby and RAF Marham in the East of England; and Christchurch, Frimley and Yeovil in the South of England.

Its UK-based Air business includes programmes for the production of Typhoon combat and Hawk trainer aircraft, support, training and upgrades for Typhoon, Tornado and Hawk aircraft, and development of next-generation Air Systems and defence information systems, as well as the UK-based F-35 Lightning II manufacture, engineering development and support activity.

The Air section of BAE Systems, which operates primarily in Lancashire, saw the following highlights:

  • Contract secured to support the production of 38 Typhoon aircraft for the German Air Force
  • Qatar Typhoon and Hawk aircraft programme met its contractual milestones in the year
  • F-35 programme Lots 12 to 14 contract definitised following price agreement. 126 rear fuselage assemblies completed in the year, below the contracted level as a result of COVID-19 disruption. Ramp up to full-rate production in 2021
  • Governments of Italy and Sweden committed to working with the UK to develop next-generation combat air capability
  • A further six Hawk aircraft assembled in Saudi Arabia were accepted and entered service in Kingdom
  • The design and production readiness phase of the Hunter Class Frigate programme for the Royal Australian Navy continues to make good progress
  • Sale of Advanced Electronics Company to Saudi Arabian Military Industries completed in February 2021

The Maritime section of the company, which operates from Barrow-in-Furness in Cumbria as well as locations in Scotland, had the following highlights:

  • The fourth Astute Class submarine, HMS Audacious, left our Barrow site in April to begin sea trials with the Royal Navy
  • Construction of the first two Dreadnought Class submarines continues to advance
  • The build phase of the River Class Offshore Patrol Vessel programme is now complete, with the fourth ship, HMS Tamar, handed over to the Royal Navy in March, and HMS Spey, the fifth and final ship, handed over in October
  • Construction of the first two City Class Type 26 frigates for the Royal Navy continues to progress
  • Acquisition of Techmodal, a UK data consultancy and digital services business, completed in August
  • Announcement of a 15-year agreement with the UK Ministry of Defence to supply the Next Generation Munitions Solution between 2023 and 2037
  • RBSL has secured its share of the Mechanised Infantry Vehicle Boxer programme