H1 financials coincide with new Tempest contract for BAE Systems
Team Tempest picked up a new £250 million contract from the UK MoD to kick off the Concept and Assessment phase of the UK FCAS programme. (Photo: BAE Systems)
UK defence conglomerate BAE Systems continues role in UK Future Combat Air System as its operating profits surge in H1 2021.
BAE Systems logged higher year-on-year sales and order intake in H1 2021, the UK-based defence and aerospace group reported on 29 July.
Sales H1 2021 reached £10.03 billion, generating an operating profit of £1.3 billion. These figures mark a year-on-year increase of 1.66% and 61.3% respectively.
Order intake rose by 13.3% to £10.58 billion compared with H1 2020, while the order backlog held steady at £44.6 billion (the figure at the end of H1 2020 was £46.1 billion)
In its results announcement on 29 July, BAE maintained its full-year sales growth forecast of 3-5% over the 2020 figure of £9.87 billion.
BAE Chief Executive Charles Woodburn said: ‘We are well-positioned for sustained growth in the coming years and are ramping up our investments in advanced technologies.’
These technologies include the Future Combat Air System (FCAS) for the UK, in which BAE plays a leading role in the Team Tempest industry consortium. The H1 financials announcement coincided with news that the MoD has awarded Team Tempest an initial £250 million contract, marking the formal start of the Concept and Assessment phase to develop the next-generation air combat platform.
‘The contract will see investment in the digital and physical infrastructure on which the programme will be developed, putting it on a “digital first” footing whereby simulated design and testing can significantly reduce costs, time and emissions,’ the MoD added.
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