|
BAE Systems PLC on Thursday said trading is in line with expectations backed by increased defence spending. In a statement ahead of Thursday’s annual general meeting, Chief Executive Charles Woodburn said: ‘Trading so far this year has been in line with expectations. Operational performance continues to be strong and our backlog and programme incumbencies underscore our confidence in our long-term value-creating model.’ ‘Our global presence and diverse portfolio of products and services provide high visibility for top-line growth, margin expansion and cash generation in the coming years,’ he added. Shares in the London-based aerospace and defence manufacturer rose 0.9% to 1,394.00 pence in London on Thursday. The company said full year 2024 guidance is unchanged from that issued in February. BAE Systems expects 2024 sales growth of 10% to 12% from £25.28 billion in 2023. It expects underlying earnings before interest and tax to grow by 11% to 13% from £2.68 billion in 2023. Underlying earnings per share are predicted to grow by 6% to 8% from 63.2 pence in 2023. BAE Systems said defence spending is high across its sectors and key markets. It said the recent passing of the US supplemental aid package to Ukraine and the commitment by the UK Government to spend 2.5% of GDP by 2030 should build further positive momentum. BAE Systems said the integration of Ball Aerospace, now renamed Space & Mission Systems, is underway and the business has had a good start to the year, securing a number of key contracts. The company said self-funded R&D is expected to rise with investments in high technology areas such electronic warfare, autonomy, laser directed weapons, synthetic training, electrification applications and space solutions. Capital expenditure is expected to rise compared to 2023, with capital expenditure focused on maritime, munitions and the Swedish combat vehicle production capacity and capabilities. These investments are all included within rolling 3-year cash guidance. BAE Systems will announce its interim results for the half year ending June 30 on August 1. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
