BAE Systems boasts solid performance for 2014

Posted on 19 Feb 2015 by Victoria Fitzgerald

BAE Systems has released its yearly results for 2014, revealing a strong overall performance, £10bn of new orders from the UK and US for the third consecutive year, and a backlog of £40.5bn.

The firm recorded sales of £16.6bn and the year-on-year reduction of £1.5bn reflected £0.6bn of adverse exchange rate translation.

The underlying EBITA was £1,702m and margin performance delivered a return on sales of 10.2%.

Underlying earnings per share increased from 37.6p to 38.0p after excluding the benefit from the price escalation settlement in 2013 and £925m was returned to shareholders in 2014, from its share repurchase programme and dividends.

Defence spending remains a high priority in a number of international markets and the UK arm of the firm benefits from long-term contracts, notwithstanding continued pressure on public spending.

US budgets are now relatively stable, with some early indications of a modest improvement in 2016.

Ian King, Chief Executive, BAE Systems, said:These are competitive times and we will continue to invest in and develop the technology, skills and market positions needed to drive the business forward.

“The Group is well positioned to continue to deliver shareholder value.”

Key information

2014 2013
Sales £16,637m £18,180m
Underlying EBITA £1,702m £1,925m
Operating profit £1,300m £806m
Underlying earnings per share 38.0p 42.0p
Basic earnings per share 23.4p 5.2p
Order backlog £40.5bn £42.7bn
Dividend per share 20.5p 20.1p
Operating business cash flow £1,191m £147m
Net debt (as defined by the Group) £(1,032)m £(699)m