24th Feb 2022 10:24
(Alliance News) - BAE Systems PLC on Thursday reported robust results for 2021, prompting the aerospace and defence company to raise guidance for additional growth in 2022.
BAE shares were up 3.2% 619.80 pence, the second-best performer in the FTSE 100 on Thursday.
The Farnborough, England-based company said sales rose 2.2% to GBP21.31 billion in 2021 from GBP20.86 billion in 2020.
BAE posted pretax profit fof GBP2.11 billion, up 31% from GBP1.60 billion. This was on revenue of GBP19.52 billion, up 1.5% from GBP19.28 billion.
Underlying earnings before interest and tax rose to GBP2.21 billion from GBP2.01 billion.
Net debt - excluding lease liabilities - decreased to GBP2.16 million from GBP2.72 million in 2020.
BAE Systems proposed a final dividend of 15.2 pence per share, taking the total payout for 2021 to 25.1p, up 5.9% from 23.7p paid out in 2020.
Looking ahead, BAE guided for sales to grow by 2% to 4%, with underlying Ebit expected to increase by 4% to 6%. Free cash flow for 2022 is anticipated to be in excess of GBP1 billion, with a three-year target for 2022 to 2024 in excess of GBP4 billion.
The three-year cash flow target for the period 2020 to 2022, originally set at GBP3.5 billion to GBP3.8 billion, was upgraded to be over GBP4 billion.
"Our strong results reflect the outstanding efforts of our employees who have continued to adapt and work closely with our customers, suppliers and trades unions to deliver capabilities which keep nations and citizens safe," said Chief Executive Officer Charles Woodburn.
"Our diverse portfolio, together with our focus on programme execution, cash generation and efficiencies, is helping us to navigate the challenging operating environment, meaning we are well positioned for sustained top line and margin growth in the coming years." added Woodburn.
By Arvind Bhunjun; [email protected]
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