“This is a challenging environment but we continue to take the necessary actions to manage the business for the benefit of both our customers and our shareholders. We have received £4.8bn of orders outside the UK and US in the first six months, a continued sign of the momentum in international activity. We also see increasing cyber opportunities, particularly in the civil area. The Group has a well balanced portfolio with a 50/50 split between services and products and, we expect our well established, broad, geographic reach and strong product and services positions will provide a good platform for future growth.”
Ian King, Chief Executive, BAE Systems
FINANCIAL KEY POINTS
- Sales £8,448m
- Underlying EBITA £865m
- Underlying earnings per share 17.8p
- Order backlog £43.1bn
- Non-UK and US order intake £4.8bn
- Interim dividend per share increased by 3% to 8p
BAE SYSTEMS DETICA
BAE Systems Detica continues to deliver information intelligence solutions to protect and enhance customers’ operations, particularly in the areas of cyber security and financial crime prevention and detection.
- Cyber Security: The cyber security business continues to show strong growth. Detica CyberReveal™, our advanced cyber threat monitoring product, was launched globally in April, effectively spearheading the expansion of Detica into the US commercial cyber security market. Demand for Detica’s managed security services delivered from the Security Operations Centre in the UK is also strong with BAE Systems Detica named as official cyber security partner to McLaren in April.
- Recruitment: The increasing need for cyber security is reflected in the recruitment of 130 graduates – over 44% of BAE Systems’ total graduate intake – into Detica in 2013.
- Mobile Security: A significant five year strategic partnership was announced in February between Vodafone and BAE Systems to provide businesses with a range of advanced secure communications products and services, initially focused on smart phones and tablets. The first commercial element of the partnership, Vodafone Mobile Threat Manager, a cloud-based solution based on Detica technology, was launched successfully, with good initial sales traction leading to customer trials.
- Counter Fraud: BAE Systems Detica continues to provide enterprise risk, fraud and compliance solutions internationally with new business wins from customers, including Commerzbank, Home Trust Company and Zurich, contributing towards total order intake of £42m in the period. The Detica NetReveal™ solution continues to win industry recognition in the sector.
- UK Services: Highlights for the half year include the business being selected as preferred bidder by the Foreign & Commonwealth Office for its Service Management Integration framework and also the signing of a four year IT Solutions and Systems Integration framework with Network Rail.
Martin Sutherland, Managing Director, BAE Systems Detica said:
“BAE Systems Detica expects continued growth from delivering information intelligence solutions in the UK and internationally, with demand from government and commercial customers for products and services which protect and enhance operations, particularly in the areas of cyber security, financial crime prevention and communications intelligence. And as the world increasingly relies on new communications technology, we also see great potential to develop next generation security for mobile devices.”
For more information, please contact:
Natasha Davies, BAE Systems Detica
Tel: +44 (0)207 812 4274
Mob: +44 (0)7787 297831
Rachael Gordon, BAE Systems
Tel: +44 (0) 1252 384719
Mob: +44 (0)7793 423682