BAE Systems boosts investor payouts on bumper start to 2022 as defence giant appoints its first female chair
- Interim dividend lifted by 5% and £1.5bn share buyback programme confirmed
- BAE Systems confirms Cressida Hoogg to replace Sir Roger Carr
BAE Systems has boosted investor dividends and announced a bumper buyback scheme after a better-than-expected first-half.
The FTSE 100 company has confirmed a 5 per cent increase in its interim dividend and launched a £1.5 billion three-year share buyback programme.
In its half year results the British arms and aerospace company also confirmed the appointment of Cressida Hogg as its first every female chairperson, succeeding incumbent Sir Roger Carr.
BAE’s share price has risen nearly 40% since the start of the year but dipped slightly in early trading this morning.
Hogg is the current chair of property giant Land Securities and, once in place, all three of the UK’s top defence firms will have female chairmen for the first time.
The company saw sales rise 5 per cent for the first half of 2022 year-on-year to £10.58billion, on a constant currency basis. And underlying earnings before interest and tax rose 8.2 per cent to £1.11billion over the period.
This surpassed analyst forecasts of sales of £10.45billion and underlying EBIT of £1.1billion.
Charles Woodburn, chief executive, said: ‘Trading in the first half has been in line with expectations delivering strong order intake and good operational performance.
Cressida Hogg, current chair of Land Securities is set to replace Sir Roger Carr as BAE chairman.
‘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.’
He added that the fighter plane and submarine manufacture has confidence in the future outlook. And it is continuing to invest in the business with a focus on its ESG agenda.
Following the results, the company has not changed its full-year guidance, sticking with the prediction that sales will increase 2 per cent to 5 per cent for 2022 and underlying earning will go up 4 to 6 per cent. T
he Group’s underlying effective tax rate for the first half of the year was 19 per cent.
BAE Systems share price fell 1.28 per cent in early trading to 772p. The price has climbed 39.16 per cent for the year to date.