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BAE on the buyback trail

The defence contractor has boosted cash generation
BAE on the buyback trail

 

  • Construction of the first three City Class Type 26 frigates now under way
  • A new share buyback programme of up to £500m has been announced

Steady as she goes for BAE Systems (BA.), with underlying trading profit up by a fifth at the half-year mark and order intake 13 per cent to the good on HY2020. Shareholders in the global defence contractor also benefitted from a 5 per cent hike in the dividend rate and are being asked to participate in a new share buyback programme of up to £500m. The return to shareholders has been made possible by enhanced cash generation, aided by the £250m inflow on the sale of its Filton and Broughton sites. The group anticipates free cashflow exceeding £1bn this year and has maintained its three-year cash flow target for 2021-2023 of over £4bn.

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