Aviation and arms firm BAE Systems has announced a solid year of trading so far in 2023, as the company’s AGM takes place to discuss the past 12 months’ business.
BAE, which has a base in Samlesbury, said its trading so far this year is in line with expectations and it continues to provide the UK and nations around the world with combat aeroplanes.
It also repeated its aim to increase its number of UK apprentices by 40 per cent, with a considerable number of those roles being based in Lancashire.
Its annual general meeting took place on May 4, chaired by Sir Roger Carr, who spoke with shareholders about its past year’s performance alongside chief executive Charles Woodburn.
Sir Roger also stepped down, and his replacement as chair Cressida Hogg was welcomed into the role.
Mr Woodburn said: "Trading so far this year has been in line with expectations with continued good operational performance.
“Order flow on new programmes, renewals and progress on our opportunity pipeline remains strong.
“In particular, the AUKUS announcement in March is significant for the company in the medium and long-term and we look forward to supporting our customers in this far reaching programme.
“In the current elevated global threat environment, we’re continuing to deliver mission critical requirements to our customers, and our global presence and diverse portfolio of products and services provide a high visibility for top line growth, margin expansion and cash generation in the coming years.”
It’s expectations for a three to five per cent rise in sales from £23.3 billion in 2022 remains unchanged, and in the past 12 months it has met a number of milestones including starting construction on a third Dreadnought class submarine, and delivering two Typhoon fighter jets to the Gulf state of Qatar.
The AUKUS announcement in March – the UK, US and Australia forming a security partnership to ensure security and stability in the Indo-Pacific region – has also been a big boost for BAE.
It has enabled it to enter more international markets and continues its work securing contracts with Italy and Japan at the end of 2022.
BAE said in a statement: “These multinational endeavours further highlight our global reach and the scale and longevity of our business.
“As always, we are working closely with our customers to deliver on their critical long-term programmes which are reflective of a structural upwards shift in defence spending in our addressable markets.”
A three per cent rise in the USA’s defence budget – to more than $842 billion – is a further boost for BAE, while the UK is also increasing spending on defence, and Finland joining NATO last month has also presented an opportunity for BAE as it upgrades its military capabilities.
BAE said it expects orders to exceed sales again – citing heightened military tensions around the world – and highlighted orders for Tempest and F-35 fighter jets, naval guns, and intel equipment as being of particular importance.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here