BAE systems announces 2020 half year results: air highlights

30 July 2020

Charles Woodburn, Chief Executive, said: “We have delivered a robust performance in the first half of the year, thanks to the efforts of all of our employees. We started the year from a strong position and we have taken actions to enhance our resilience, ensuring we continued to deliver against our customer priorities, whilst keeping our employees safe.

“Assuming no significant COVID-19 resurgence, we expect a good second half to the year. Demand for our capabilities remains high and we recognise our role not only in supporting national security, but also in contributing to the economies of the countries in which we operate.”

Results in brief

Financial performance measures as defined by the Group

 

Financial performance measures defined in IFRS

 

Six months ended 30 June 2020

Six months ended 30 June 2019

Year ended 31 December 2019

 

 

Six months ended 30 June 2020

Six months ended 30 June 2019

Year ended 31 December 2019

Sales

£9,871m

£9,416m

£20,109m

 

Revenue

£9,180m

£8,674m

£18,305m

Underlying EBITA

£895m

£999m

£2,117m

 

Operating profit

£808m

£896m

£1,899m

Underlying earnings per share

 

 

 

 

Basic earnings per share

16.7p

25.0p

46.4p

excluding one-off tax benefit (2019 only)

18.7p

21.9p

45.8p

 

 

 

 

 

including one-off tax benefit (2019 only)

18.7p

26.9p

50.8p

 

 

 

 

 

Operating business cash flow

 

 

 

 

Net cash flow from operating activities

£(727)m

£(232)m

£1,597m

excluding £1bn pension contribution (2020 only)

£120m

£(309)m

£1,307m

 

including £1bn pension contribution (2020 only)

£(880)m

£(309)m

£1,307m

 

 

 

 

 

Net debt

£(2,038)m

£(1,889)m

£(743)m

 

 

 

 

 

Order intake

£9,339m

£8,418m

£18,447m

 

 

 

 

 

Order backlog

£46.1bn

£47.4bn

£45.4bn

 

 

 

 

 

Dividend and post-employment benefits

 

 

 

Six months ended 30 June 2020

Six months ended 30 June 2019

Year ended 31 December 2019

 

 

 

 

 

Dividend per share

9.4p

9.4p

9.4p

 

 

 

 

 

Dividend per share – in respect of 2019 performance

 

13.8p

 

 

 

 

 

 

 

Group’s share of the net post-employment benefits deficit

£(6.0)bn

£(4.3)bn

£(4.5)bn

 

 

 

 

 

COVID-19

Throughout the pandemic, our priority has been keeping our employees safe whilst delivering on our commitments to deliver critical defence and security programmes to our customers.

At our Air sites, we have extensively reconfigured on-site facilities to enable social distancing and introduced enhanced cleaning regimes. Whilst a majority of employees continue to work remotely, a sizeable population has returned to site, operating under newly established safe systems of work.

Highlights from the first half of 2020:

  • The next phase of the Tempest technology maturation programme is progressing well with an outline business case submission expected by the end of 2020. International studies are progressing with Sweden and Italy as well as discussion with other prospective partner nations.
  • The PHASA-35® solar-electric powered unmanned aircraft successfully completed its maiden flight in February. Discussions with a range of customers continue in the development of this technology and a range of services.
  • Typhoon support in the UK continues to meet operational performance levels.
  • Typhoon production is focused on sub-assembly and major unit build on the Kuwait and Qatar programmes. Three deliveries of major units under the Kuwait Typhoon contract occurred in the first half of the year and the Qatar Typhoon programme achieved key milestones ahead of schedule.
  • We maintain our commitment to recruit around 270 apprentices in 2020, working across programmes such as Tempest, developing the future of combat air.

For associated materials, please visit:https://baesys.resourcespace.com/pages/search.php?search=%21collection1824&k=8160d60923

For further information please contact:

David Coates, BAE Systems
M: +44 (0) 7525 081575
E: david.coates@baesystems.com

Philippa Mason, BAE Systems
M: +44 (0) 7384 249518
E: philippa.mason@baesystems.com

Issued by:
BAE Systems plc
Media hotline: +44 (0) 7801 717739
www.baesystems.com
@BAESystemsplc

Ref: 072/2020



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