BAE Systems reports increased sales for 2015

Group boosted by increased aircraft deliveries to Saudi Arabia and activity across its naval business

Defence giant BAE Systems has reported 7% increase in sales to £17.9 billion for the 12 month ended 31 December 2015, boosted by increased aircraft deliveries to Saudi Arabia and increased activity across its naval business.

The group’s UK division grew sales by £0.8 billion, which was attributable to large aircraft deliveries to Saudi Arabia and sales equipment for the Eurofighter Typhoon fighter jet programme.

However, the company’s earnings before interest, tax, depreciation and amortisation fell by 1% year-on-year to £1.7 billion due to the Typhoon production slowdown.

Ian King, chief executive, said: “We have delivered another solid performance. BAE Systems has a large order backlog generated by a well-balanced portfolio of businesses serving the needs of customers in many of the world’s large accessible markets.

“The group is well- placed to continue to generate attractive returns for shareholders as defence budgets recover and our commercial adjacencies of cyber and commercial electronics continue to grow.”

During the year, the company won contracts including: a £859 million Type 26 frigate demonstration contract, the full £1.3 billion contract for the fifth Astute-class submarine, a five-year contract from the US Army for the Enhanced Night Vision Google III and Family Weapon Sights programme, a contract to develop and manufacture the next-generation digital electronic warfare system for the US Air Force’s Eagle Passive Active Warning Survivability System programme.

Earlier this week the company appointed Charles Woodburn in the newly-created role of chief operating officer. Woodburn, who has for the past five years been chief executive of oil services business Expro, will report to King and will be appointed to the board during the second quarter of the year.