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BAE Systems shares rise amid Ukraine tensions

Type 23 frigate
Investors are backing defence companies

BAE Systems saw its stock price among a rare number in positive territory as the ongoing confrontation between Russia and Ukraine boosted defence companies.

Shares rose 34p (5.66%) in a market that crashed following President Putin’s order to invade his neighbour.

Britain’s biggest defence company, said Russia’s beligerence would place a sharper focus on security

Underlying EBIT increased 13% to £2.2 billion on a 5% rise in annual sales by £400m to £21.3bn.

Order intake rose to £21.5bn from £20.9bn in 2020, while the order backlog fell by £1.2bn to £44bn.

Charles Woodburn, chief executive, said: “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.

“We are continuing to evolve our business, increasing our investments in advanced technologies to deliver differentiated solutions to meet our customers’ priorities.

“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.”

See also: UK firms on alert as Russia warns of tit-for-tat attack

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