This website uses cookies. By navigating around this site you consent to cookies being stored on your machine

2016 Half Year Results

Today we have announced the Group’s interim financial results and confirmed that we have performed well in the first half of 2016, in line with our expectation and the guidance we set out at our full-year results in February.
Ian King, Chief Executive
 

Today we have announced the Group’s interim financial results and confirmed that we have performed well in the first half of 2016, in line with our expectation and the guidance we set out at our full-year results in February. 
 

Headline figures include:

 
  • Sales increased by more than £200m to £8.7bn mainly due to exchange translation
  • Underlying EBITA increased by 6% to £849m, or 3% on a constant currency basis 
  • Underlying EPS increased by 2% to 17.4 pence
 
Despite economic and political uncertainties, governments in our major markets continue to prioritise national security, with strong demand for our capabilities.
 
In the US, we are seeing encouraging signs of a return to growth in defence budgets and improved prospects for our core franchises. In the UK our businesses continue to perform well, benefitting from good programme execution and we expect the 2015 SDSR commitments to be implemented as planned.  We have established positions on long-term programmes in the US, UK, Saudi Arabia and Australia and new business prospects in a number of international markets.
 
Our good programme execution is underpinned by the quality of our technology and engineering capability.  We continue to drive innovation and invest in R&D in the appropriate areas of the business, both on a self-funded basis and in conjunction with our customers.  
 
So to sum up, we closed 2015 with good momentum across the business and we’ve continued to perform well into 2016.  We have increased our half-year dividend by 2% sustaining our track record of 12 years of dividend growth.
 
The guidance we gave at the full-year results in February is unchanged. With some anticipated trading bias to the second half of the year and, other than for exchange translation, we continue to expect underlying earnings per share to be approximately 5% to 10% higher than the adjusted underlying earnings per share of 36.6p in 2015.
 
We have continued to win new orders and extensions to major support contracts in our core franchises in 2016.  With a large order backlog and a balanced portfolio, the Group remains well placed to maximise new business opportunities, deal with the challenges and continue to generate attractive shareholder returns. 
 
Ian King
 
 
top
BAE Systems Corporate Blog 28 July 2016