AGM Statement

RNS Number : 1488X

BAE SYSTEMS PLC

04 May 2016

 

BAE Systems plc - 2016 Annual General Meeting

                                                                                                                        4 May 2016

BAE Systems plc will hold its Annual General Meeting today at 11 a.m. in Farnborough, Hampshire, UK.  At the meeting, Chairman, Sir Roger Carr and Chief Executive, Ian King, will comment on the performance of the Group in 2015, as detailed in the results announcement published on 18 February 2016, and outline the continued progress in the Group in the year to date.

Ian King, Chief Executive, will say: "Whilst economic and geo-political conditions remain volatile, we have started the year with good momentum and the business is performing well. In 2016 and beyond, we are well placed to continue to generate attractive returns for shareholders."

Trading for the period has been consistent with management expectations at the time of the 2015 results announcement and the Group's outlook remains unchanged.

In 2016, the Group's underlying earnings per share are expected to be approximately 5% to 10% higher than the adjusted underlying earnings per share of 36.6p* in 2015.

* Reported underlying earnings per share of 40.2p excluding tax provision releases of 4.3p per share, and adjusting for a 0.7p per share benefit from an assumed US$1.45 to sterling translation rate.

The results of voting at the Annual General Meeting will be announced later today.   

Key points in 2016 to date

On 3 March, the Group welcomed the announcement by the UK and French governments of a new €2bn (£1.6bn) project to build an unmanned combat air system demonstrator. This will secure high-end engineering jobs and is anticipated to be contracted in 2017.

On 22 March, the Group was awarded a £472m extension to the Type 26 Global Combat Ship demonstration phase contract by the UK Ministry of Defence.

On 25 March, the Group was awarded a $149m (£105m) contract for the production of new Assault Amphibious Vehicles for the Japanese Ministry of Defence.

On 28 March, the UK Ministry of Defence announced the award of three contracts with a total value of approximately £300m to support the UK's fleet of Hawk fast jet trainer aircraft until 2020.

On 29 March, the Swedish government awarded BAE Systems a contract, valued at $182m (£128m), to refurbish 262 Combat Vehicles 90 (CV90) for the Swedish Army.

On 5 April, Italian Eurofighter partner, Finmeccanica, signed a contract for the supply of 28 Typhoon aircraft to Kuwait. The contract is expected to result in airframe manufacture and Electronic Scanned (E-Scan) radar integration work valued at approximately £1bn for BAE Systems.

BAE Systems has been selected for a £118m contract to build engineering and training facilities at RAF Marham in Norfolk, UK. The work is scheduled to be completed in 2018 in readiness for the arrival of the UK's first F-35 Lightning II aircraft.

The MBDA joint venture, in which BAE Systems has a 37.5% interest, has continued to win new orders, BAE Systems' share of which is valued at approximately £182m in the first quarter of 2016.

Half-year results

BAE Systems will announce its financial results for the half year ending 30 June 2016 on 28 July 2016. 

The Board and directors

On 15 February 2016, the Company announced that Charles Woodburn would be joining the Board and Executive Committee in the newly-created role of Chief Operating Officer. He will report to the Chief Executive, Ian King, and his appointment will be effective from 9 May 2016. 

Elizabeth Corley was appointed as a non-executive director of the Company with effect from 1 February 2016.  

Led by the Senior Independent Director, Nick Rose, the Board has agreed to extend Sir Roger Carr's term of appointment as Chairman until February 2020.

Cautionary statement

All statements other than statements of historical fact included in this statement are forward-looking statements. Such forward-looking statements, which reflect management's assumptions made on the basis of information available to it at this time, involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of BAE Systems or the markets and economies in which BAE Systems operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BAE Systems plc and its directors accept no liability to third parties in respect of this statement, save as would arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.

Issued by:

BAE Systems plc

London

 

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