2.2 C
Lancashire
Friday, February 7, 2025

BAE SYSTEMS ANNOUNCES 2016 FULL YEAR RESULTS

Ian King, Chief Executive, said:

“2016 was a good year for BAE Systems. Our strategy is well defined; we have a large order backlog, long-term programme positions, strong programme execution and a well-balanced portfolio. With an improved outlook for defence budgets in a number of our markets, we are well placed to continue to generate attractive returns for shareholders.”

Results in brief

Financial performance measures as defined by the Group

  2016 2015  
Sales £19,020m £17,904m  
Underlying EBITA £1,905m £1,683m  
Underlying earnings per share 40.3p 40.2p  
Operating business
cash flow
£1,004m £681m  
Net debt £(1,542)m £(1,422)m  
Order intake £22,443m £14,921m  
Order backlog £42.0bn £36.8bn  
 

Other financial highlights

     
  2016 2015  
Group’s share of the net pension deficit £(6.1)bn £(4.5)bn  
Dividend per share 21.3p 20.9p  

BAE Systems Military Air and Information business highlights:

At BAE Systems, we employ around 13,000 people in our Military Air & Information business across 30 locations, including Warton and Samlesbury in the North West of England and in Brough, RAF Coningsby and RAF Marham in the East of England. Highlights for 2016 include:

  • We welcomed the announcement by the UK and French Governments in March, of a €2bn (£1.7bn) programme to build operationally representative unmanned combat air system demonstrators following a successful joint feasibility study.
  • Orders totalling £1bn have been received via Eurofighter from our Italian Eurofighter partner, Leonardo, for our share of work on the 28 Typhoon aircraft for Kuwait.
  • A ten-year partnership arrangement with the UK Ministry of Defence (MOD) to support the UK Typhoon fleet, expected to be worth at least £2.1bn, was signed in July.
  • In November, a team including BAE Systems, was chosen to be a provider of maintenance repair, overhaul and upgrade of F-35 Lightning II avionics and components, during the period 2021 to 2025 on a global basis and from 2025 onwards for the European region.
  • £118m contract was secured to build engineering and training facilities at RAF Marham for the UK F-35 Lightning II aircraft.
  • Long term contracts were secured with the UK MOD to support the RAF’s fleet of Hawk fast jet trainer aircraft until 2020.
  • Typhoon’s capabilities continue to be enhanced with the ongoing integration of the Captor E-Scan radar and the Storm Shadow, Meteor and Brimstone 2 missiles as part of European capability delivery programmes.
  • Throughout 2016 we maintained our commitment to deliver high quality apprentice and graduate programmes.  In December a new £15.6m training academy was opened at Samlesbury, designed to train apprentices and graduates in our military aircraft business as well as providing life-long learning and skills development activities.

Chris Boardman, Managing Director at BAE Systems Military Air & information, said:

“We made good progress in 2016 thanks to the dedication of our highly skilled workforce.  We achieved key targets on Typhoon and F-35 Lightning II production, long-term support arrangements on Typhoon, F-35 Lightning II and Hawk and an agreement between the UK and French Governments to progress the new unmanned combat air systems demonstrator programme.

“The recent heads of agreement signed with Turkish Aerospace Industries, ahead of a planned contract to collaborate on the first design and development phase of an indigenous fifth-generation fighter jet, further helps to support critical skills, technology and technical expertise to the benefit of our business and the wider economy.”

 

FY16 Prelim FINAL

spot_imgspot_img

Latest

Appy Pie Launches AI Generator: The Next Evolution in AI Content Creation

Appy Pie, a pioneer in no-code technology, proudly announces...

How Remote Work is Driving Growth at Carrie-Ann Sudlow Consultancy

Since shifting to a fully remote and hybrid working...

New projects to explore the North West’s working-class heritage

Four new projects across the North West - including...

Jennings Brewery to return to brewing in Cockermouth under new ownership

The historic Jennings Brewery located in Cockermouth, Cumbria, has...
spot_img

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

How Remote Work is Driving Growth at Carrie-Ann Sudlow Consultancy

Since shifting to a fully remote and hybrid working...

AI-Driven Education: Welbee and Rittman Analytics Enhance Stakeholder Feedback Analysis

Welbee, a multi-award-winning provider of survey solutions that support...

England’s Recycling Reforms Set to Launch in Less Than Two Months

With fewer than two months remaining, the UK Government...

CLOSWAP: How Three Students Are Changing UK Fashion with a Swapping App

A revolutionary new app is shaking up Britain’s fashion...

More News

New projects to explore the North West’s working-class heritage

Four new projects across the North West - including two in Lancashire - are being funded by Historic England's Everyday Heritage grants programme in...

Lancashire Police supports four-week Firearms Amnesty

Lancashire Police are supporting a national four-week Firearms Amnesty for Turkish manufactured top-venting blank firers (TVBFs). These firearms are now illegal to possess following testing...

Six arrested following East Lancashire derby

Police have thanked supporters who enjoyed the East Lancashire derby in a respectful way on Saturday. Blackburn Rovers were beaten 1-0 at home against Burnley...