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Re: BAE Systems (BA)

Posted: February 21st, 2020, 5:37 pm
by dealtn
Looking forward to the annual accounts coming out to have a proper dig into this one. Not being a member, the Pension accounts are a little elusive to see what constitutes the assets here. In the year to March 19 the asset return exceeded the discount rate on which the liabilities (and hence the deficit) are calculated. That's always a positive, but hardly a challenging target!

Looking at the debts these aren't an issue, and plenty of offsetting cash, and cash equivalents. It will be interesting to see what kind of debt maturity they choose to inject the £1bn into the scheme(s). There might be pressure to duration match, and choose say a 15 year instrument. I would go much shorter were I the FD though.

Note the approx. £2bn funding deficit is about half the accounting one though. I would think though that the market, and analysts would prefer to see a smaller deficit and more debt than the current situation, which whilst not being consistent thinking, would reduce pension uncertainties that seem always to be viewed so negatively by everyone.

Already own this one, good total return to date, and more likely to add than reduce as things stand.

Re: BAE Systems (BA)

Posted: April 3rd, 2020, 7:24 am
by idpickering

Re: BAE Systems (BA)

Posted: May 4th, 2020, 7:12 am
by idpickering
BAE Systems completes Airborne Tactical Radios business acquisition.



Further to the announcement of 20 January 2020, BAE Systems has completed the acquisition of Raytheon Technologies Corporation's Airborne Tactical Radios business ("Radios business"), after receiving regulatory and other customary approvals. The consideration of $275 million (approximately £218 million) has been funded from BAE Systems' existing cash resources.


https://www.investegate.co.uk/bae-syste ... 00067395L/

Re: BAE Systems (BA)

Posted: June 25th, 2020, 7:24 am
by idpickering
Trading Update

Trading update

As expected, the pandemic has impacted the business in the second quarter, with sites in the Air and Maritime sectors and our US commercial avionics business being most affected. However, as a result of the actions taken, productivity levels in June have improved within our defence businesses (which account for around 90% of the Group's revenues). Many of these operations now have well over 90% of employees working. This includes a high proportion working from home and critical on-site workers having returned under adjusted protective safety measures in response to the pandemic. In parallel the business continues to drive cost control measures.

Within our UK-based Air and Maritime sectors, second quarter disruptions have particularly impacted cost recoveries and sales volumes, offset to some degree by strong underlying operational performance and cost control measures. Product delivery levels in MBDA have also been impacted given the European locations of its factories.

https://www.investegate.co.uk/bae-syste ... 00070055R/

Also posted on HYP Practical Board.

Ian.

Re: BAE Systems (BA)

Posted: July 30th, 2020, 7:08 am
by idpickering

Re: BAE Systems (BA)

Posted: July 30th, 2020, 7:54 am
by Darka
Thanks Ian

Re: BAE Systems (BA)

Posted: July 30th, 2020, 10:56 am
by dealtn


The market likes them, a rare bit of blue on a generally red day.

Disappointing that cash flow looks weak, but order book looks good, and the pension deficit increase doesn't worry me (at least at first glance). I will do a deeper dive into this later as a share that I already own.

Re: BAE Systems (BA)

Posted: July 31st, 2020, 2:42 pm
by idpickering
BAE Systems completes acquisition of Military Global Positioning System business

Further to the announcement of 20 January 2020, BAE Systems has completed the acquisition of the Collins Aerospace Military Global Positioning System business ("GPS business") from Raytheon Technologies Corporation , after receiving all necessary regulatory approvals and fulfilling other customary conditions for closing. The consideration of $1.925bn (approximately £1.48bn) has been funded from new external debt.

The GPS business is the leading provider of mission critical military GPS receiver solutions and has been a pioneer in the market for over 40 years, including designing and producing advanced hardened and secure GPS products that include next-generation M-Code technologies.

The GPS business is highly complementary to our priority growth area of precision guided munitions. We expect continued customer demand for the secure geo-positioning needs of the modern battlespace that support the increasingly critical role of precision guided munitions in military operations.

Based in Cedar Rapids, Iowa, the GPS business has approximately 700 employees across its skilled workforce and experienced management team who will be joining the Precision Strike & Sensing Solutions business within the Electronic Systems sector.


https://www.investegate.co.uk/bae-syste ... 34288125U/

Re: BAE Systems (BA)

Posted: November 11th, 2020, 7:08 am
by idpickering

Re: BAE Systems (BA)

Posted: November 11th, 2020, 11:19 am
by dealtn
idpickering wrote:Trading Statement

Here; https://www.investegate.co.uk/bae-syste ... 00029047E/


A number of nations increasing their defence spending to 2% in line with NATO agreement. Should the Covid pandemic unwind quicker, and with less costs, than previously expected this transition could occur quicker too presumably.

Shares moderately outperforming on the day, but would hope for greater outperformance longer term.

Re: BAE Systems (BA)

Posted: November 11th, 2020, 11:37 am
by idpickering
dealtn wrote:
idpickering wrote:Trading Statement

Here; https://www.investegate.co.uk/bae-syste ... 00029047E/


A number of nations increasing their defence spending to 2% in line with NATO agreement. Should the Covid pandemic unwind quicker, and with less costs, than previously expected this transition could occur quicker too presumably.

Shares moderately outperforming on the day, but would hope for greater outperformance longer term.


Agreed. I hold these in my HYP, and am holding for the extreme long term. They're a solid all around share imho.

Ian.

Re: BAE Systems (BA)

Posted: November 11th, 2020, 11:55 am
by Dod101
idpickering wrote:
dealtn wrote:
idpickering wrote:Trading Statement

Here; https://www.investegate.co.uk/bae-syste ... 00029047E/


A number of nations increasing their defence spending to 2% in line with NATO agreement. Should the Covid pandemic unwind quicker, and with less costs, than previously expected this transition could occur quicker too presumably.

Shares moderately outperforming on the day, but would hope for greater outperformance longer term.


Agreed. I hold these in my HYP, and am holding for the extreme long term. They're a solid all around share imho.

Ian.


Yes except for the ethical dimension.

Dod

Re: BAE Systems (BA)

Posted: November 11th, 2020, 12:06 pm
by monabri
Not forgetting the pension deficit.

As an aside, I used to look at the "JLT Benefits Reports" for company pension deficits/surpluses. A very good report but I can no longer find an updated copy- the last one I have is " This Quaterly Report from JLT Employee Benefits covers all FTSE 100 companies. It includes analysis of all annual reports for years ending on or before 30 June 2018 and published by 31 October 2018."

( complete with spelling mistake.. :?..but the report is a worthwhile read. There's one for FTSE250 companies too)

Re: BAE Systems (BA)

Posted: November 11th, 2020, 12:42 pm
by idpickering
Dod101 wrote:
Yes except for the ethical dimension.

Dod


Obviously. I'm ok with holding the share, and respect the opinion of those who think otherwise, about holding BAE Systems. Each to their own.

Ian.

Re: BAE Systems (BA)

Posted: December 22nd, 2020, 1:16 pm
by idpickering
NOTICE OF RESULTS AND DIVIDEND TIMETABLE

Here; https://www.investegate.co.uk/bae-syste ... 50135053J/

Re: BAE Systems (BA)

Posted: February 25th, 2021, 7:13 am
by idpickering
Preliminary Announcement 2020

Here;

https://investors.baesystems.com/~/medi ... cement.pdf

Also posted on HYP Practical Board.

Re: BAE Systems (BA)

Posted: February 25th, 2021, 11:25 am
by Bouleversee
Quite encouraging. I'm surprised the s.p. hasn't gone up a bit more. I shall look forward to the dividends.

Re: BAE Systems (BA)

Posted: May 19th, 2021, 7:09 am
by idpickering
Trading Statement

Charles Woodburn, BAE Systems Chief Executive , said: "I am proud of how our employees have continued to perform and adapt this year, against the backdrop of the global pandemic. Our focus for 2021 is driving operational performance, progressing our sustainability agenda and investing in and developing the technologies to meet our customers' needs.

"Our good operational performance underlines our confidence in the full year guidance for top line growth and margin expansion and our three-year cash targets. Strategically, our geographically diverse portfolio is aligned to growing defence budget areas; we're ramping up investment in self-funded R&D aligned to customer focus areas and we're leveraging our leading capabilities in evolving markets to ensure we're increasingly well placed to deliver for all our stakeholders."

Operational Update

Whilst there remain uncertainties arising from the COVID-19 pandemic, progress continues in combatting the virus under the vaccination programme in our major markets and our good operational performance underlines our overall confidence in the full year guidance.

Air, Maritime, Electronic Systems and Intelligence and Security continue to perform strongly and there is positive momentum in Platforms & Services (US). Combat vehicle production across multiple platforms continues to ramp and is on track to meet agreed delivery schedules, and US ship repair performance is improving following COVID-19 and other disruptions experienced last year. Applied Intelligence has had a good start to the year with improved performance together with realised benefits from the restructuring.



https://www.investegate.co.uk/bae-syste ... 00060632Z/

Re: BAE Systems (BA)

Posted: July 29th, 2021, 7:22 am
by idpickering
Half-year Report

Financial performance measures as defined by the Group1

- Sales increased by 6% on a constant currency basis5 to £10.0bn.

- Underlying EBIT of £1,028m increased by 27% on a constant currency basis5.

- Underlying earnings per share increased by 25% to 21.9p, excluding the impact of the one-off tax benefit. The Group's underlying effective tax rate (excluding the one-off tax benefit) for the first half of the year was 18%.

- Free cash inflow of £461m (2020 outflow of £110m, excluding the £1bn pension contribution).

- Net debt (excluding lease liabilities) at £2,745m (£2,718m at 31 December 2020).

- Order backlog of £44.6bn (£45.2bn at 31 December 2020).

Financial performance measures derived from IFRS2

- Revenue increased by 2% to £9.3bn.

- Operating profit increased by 61% to £1,303m.

- Basic earnings per share increased to 31.3p (2020 16.7p).

- Net cash inflow from operating activities of £623m (2020 £727m outflow).

- Order book of £35.5bn (£36.3bn at 31 December 2020).

Dividend and share buyback

The directors have declared an interim dividend of 9.9p per share in respect of the half year ended 30 June 2021. This dividend will be payable on 30 November 2021. The directors have also approved a new share buyback programme of up to £500m over the next 12 months, which will commence immediately.


https://www.investegate.co.uk/bae-syste ... 00078281G/

Re: BAE Systems (BA)

Posted: July 29th, 2021, 7:38 am
by Darka
idpickering wrote:Half-year Report

Financial performance measures as defined by the Group1

- Sales increased by 6% on a constant currency basis5 to £10.0bn.

- Underlying EBIT of £1,028m increased by 27% on a constant currency basis5.

- Underlying earnings per share increased by 25% to 21.9p, excluding the impact of the one-off tax benefit. The Group's underlying effective tax rate (excluding the one-off tax benefit) for the first half of the year was 18%.

- Free cash inflow of £461m (2020 outflow of £110m, excluding the £1bn pension contribution).

- Net debt (excluding lease liabilities) at £2,745m (£2,718m at 31 December 2020).

- Order backlog of £44.6bn (£45.2bn at 31 December 2020).

Financial performance measures derived from IFRS2

- Revenue increased by 2% to £9.3bn.

- Operating profit increased by 61% to £1,303m.

- Basic earnings per share increased to 31.3p (2020 16.7p).

- Net cash inflow from operating activities of £623m (2020 £727m outflow).

- Order book of £35.5bn (£36.3bn at 31 December 2020).

Dividend and share buyback

The directors have declared an interim dividend of 9.9p per share in respect of the half year ended 30 June 2021. This dividend will be payable on 30 November 2021. The directors have also approved a new share buyback programme of up to £500m over the next 12 months, which will commence immediately.


https://www.investegate.co.uk/bae-syste ... 00078281G/


Thanks Ian,

I'm happy to hold and those results are not too bad.

Increase of 0.5p on last years interim which is (if my maths is correct) an increase of 5.3%.

regards,
jonathan