BAE Systems reports strong 2020 as revenue up

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​BAE Systems has reported revenue was £19,277m in 2020, up from £18,305m in 2019 on the back of winning orders.

The company also said operating profit rose to £1,930m from £1,899m in 2019. Earnings before interest, taxes, and amortization (EBITA) in 2020 was £2,132m, up from the £2,117m the previous year.

BAE Systems employs around 12,500 in the air sector at sites across the UK including: Warton and Samlesbury in the North West of England; Brough, RAF Coningsby and RAF Marham in the East of England; and Christchurch, Frimley and Yeovil in the South of England.

The UK-based air business includes programmes for the production of Typhoon combat and Hawk trainer aircraft, support, training and upgrades for Typhoon, Tornado and Hawk aircraft, and development of next-generation Air Systems and defence information systems, as well as the UK-based F-35 Lightning II manufacture, engineering development and support activity.

Charles Woodburn, chief executive, BAE Systems, said: “Thanks to the outstanding efforts of our employees and close cooperation with our customers, suppliers and trades unions, we have delivered a strong set of results against a challenging backdrop of the global pandemic. Throughout 2020, we focused on keeping our people safe and supporting our communities, whilst continuing to deliver for our customers.

“In 2021, we will continue to drive operational performance, progress our sustainability agenda and invest in high-end discriminating technologies to meet our customers’ priorities, which will ensure we are well positioned to grow the business and contribute to the economic prosperity of the countries in which we operate.”

BAE Systems said the highlights from 2020 included:

  • An order in excess of £1.2bn was secured to support the production of 38 Typhoon aircraft for the German Air Force.
  • The next phase of the Tempest technology maturation programme is progressing well, with Tempest partners currently working on more than 60 technology demonstrations.
  • The PHASA-35® solar-electric powered unmanned aircraft successfully completed its maiden flight in February 2020 and completed 72 hours of continuous ground testing.
  • We continue to play a significant role on the F-35 sustainment programme including the supply of spares and technical support, software products, upgrades and specialist workforce services.
  • In 2020, 126 F-35 rear fuselage assembles were completed and production will ramp up to full rate in 2021.
  • The German and Spanish Air Forces awarded contracts to enhance the capability of their in-service aircraft by upgrading some of their fleet with the new electronically scanned radar standard.
  • The future electronically scanned European Common Radar Solution is progressing with initial entry into service contracted on Kuwait and Qatar aircraft.
  • More than 300 apprentices and graduates will be recruited at our Air sector sites in Lancashire during 2021 as part of the largest intake of apprentices and graduates in a single year.
  • Our team in Lancashire worked tirelessly with colleagues in Portsmouth, Guildford and Hillend near Edinburgh to design, produce and start medical approval of a brand new ventilator in three weeks – a process that usually takes years. While the ventilators were ultimately not required, it was a profound experience for our people to do their part.