Defence giant BAE Systems sees profits fall

The group said pre-tax profit was £779 million compared with £1.15 billion for the first half of 2021.

The company's order intake in the period was £18 billion compared with £10.58 billion last year, while its backlog totalled £52.7 billion.

Revenue for the period was £9.74 billion compared with £9.34 billion the year before.

The company mentioned Ukraine as an operational and strategic key point and said it “closely engaged” with global customers to provide on-going support wherever requested.

BAE has a joint venture at Hadley Castle Works in Telford, known as Rheinmetall BAE Systems Land (RBSL), which specialises in land combat vehicles.

Charles Woodburn, chief executive, said: "Trading in the first half has been in line with expectations delivering strong order intake and good operational performance.

"Our diverse portfolio, together with our focus on programme execution, cash generation and efficiencies are helping us navigate the current macroeconomic challenges and position us well for sustained top line and margin growth in the coming years. We see further opportunities to enhance the medium and long‑term outlook as our customers commit to increased defence spending to address the elevated threat environment.

"The positive outcome of the UK pension triennial review, along with our performance and confidence in the outlook enable us to maintain our guidance, continue to invest in our business.

"Good operational performance, execution on our strategy and confidence in the outlook enables us today to announce a five per cent increase in the interim dividend as well as initiating a new, three-year share buyback programme for up to £1.5 billlion."

BAE Systems also announced that Cressida Hogg, who will join the board as a non-executive director, will take over as chair in March 2023, succeeding current chair, Sir Roger Carr.