“BAE Systems continues to deliver a robust performance with strong trading in a number of areas. Our geographic diversity is providing resilience and in particular, we have made excellent progress in international markets achieving a non-US and UK order intake of £11.2bn.  This has resulted in an 8% increase in our order backlog to over £42bn. We have closed the year with a strong balance sheet and are well positioned for the future.”

Ian King, Chief Executive, BAE Systems

FINANCIAL KEY POINTS

  • Sales £17,834m
  • Underlying EBITA £1,895m
  • Underlying earnings per share 38.9p
  • Order backlog £42.4bn
  • Non-US and UK order intake £11.2bn
  • Dividend per share 19.5p
  • Operating business cash flow £2.7bn
  • Net cash £387m
  • Three-year share repurchase programme of up to £1bn
  • Longevity risk on £2.7bn of pension scheme liabilities transferred to the insurance market

 

BAE Systems Detica Business Highlights

  • BAE Systems Detica continues to build a business that provides security and intelligence products and services to both government and commercial customers.
  • In July BAE Systems announced the integration of its Asia Pacific cyber security business, Stratsec, and a new security entity in India into Detica. This consolidates the non-US Government cyber and intelligence businesses, opening up new global markets for Detica’s products and services. For example, this will enable BAE Systems Detica to lead expansion into the US commercial cyber security market.
  • The Detica NetReveal business, which provides risk, fraud and compliance solutions, has achieved growth in a difficult global financial services market, with orders of £74m received during the year, including contracts in healthcare insurance at the US State level.
  • The Cyber Security business continued to show strong growth in 2012 with demand continuing across key sectors including professional services and financial services. Detica was selected by the UK’s Government Communications Headquarters (GCHQ) Information Assurance arm CESG, and the Centre for the Protection of National Infrastructure (CPNI) as one of only four companies certified to provide cyber incident response services to companies following a cyber-attack.
  • In the Services business, a significant five-year strategic partnership was signed 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.
  • BAE Systems Detica won a number of awards in 2012: global research organisation Frost and Sullivan recognised Detica’s unique cyber and IT security solution with a Global Managed Security Services award; the Malaysian Cyber Security team won recognition from the government as Malaysia's 'Most Innovative Information Security Company'; and the Australian Information Security Association selected the Australian Cyber Security business as ‘Information Security Employer of the Year’.
  • BAE Systems Detica also launched a new apprentice programme, hiring 10 apprentices at the Leeds office who will undertake a 3-year programme in conjunction with Leeds City College to receive a Foundation Degree in Computer Studies.

Martin Sutherland, Managing Director of BAE Systems Detica said:

“We are finding government and commercial clients ever more concerned about securing their financials, their systems and their communications and we believe our global business model puts us in a strong position to deliver a full portfolio of Detica products and services that meet those concerns. We expect growth in cyber and intelligence, both in the UK and overseas government markets, with increasing demand for products and services in commercial markets to manage cyber threats, counter financial fraud and improve compliance. And as the world increasingly relies on new communications technology, we also believe the business is well positioned for future growth in the development of next-generation security for mobile devices.”

 

-Ends-

 

For more information, please contact:

Tom Kirkham, Blue Rubicon

Tel: +44 (0) 020 7260 Mob: +44 (0) 7824 901425

Tom.Kirkham@bluerubicon.com

 

Issued by:

BAE Systems plc,

Farnborough, Hampshire

GU14 6YU, UK

Tel: +44 (0) 1252 384719

www.baesystemsinfo@baesystems.com

www.baesystems.com