BAE Systems reveals current performance 'in line with expectations'

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

The company has offered 2023 guidance of a rise in sales of between three and five per cent, from £23.26 billion in 2022.

Charles Woodburn, BAE Systems Chief Executive, 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 on 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."

The company said that given the defence spending environment and order intake so far this year, it expects orders to exceed sales for the full year.

Notable awards received to date include Tempest – £656m further technology, design and development funding and a major contract to equip the Royal Navy's Type 26 frigates with five Mk45 Maritime Indirect Fire Systems.

The company said it aims to increase 2023 UK apprentice and graduate hires by more than 40 per cent and will be progressing four key pillars of focus – addressing climate risks; ideas, innovation and technology; creating opportunity for people and communities and success through partnering.

BAE Systems will announce its interim results for the half year ending June 30 on August 2.