Profits jump at BAE with new pension deal announced

Revenue and profit jumped at defence giant BAE systems in 2019, the company said, as it announced a new deal for its pension pot.
By Jenny Simpson
Published 20th Feb 2020, 11:45 BST
Updated 20th Feb 2020, 12:15 BST
BAE at SamlesburyBAE at Samlesbury
BAE at Samlesbury

The company's revenue hit £18.3 billion, a 7% increase on 2018, bosses revealed on Thursday. Meanwhile operating profit grew to nearly £1.9 billion, an 18% rise on the year before.

BAE systems announced it has reached a new deal with its pension trustees. The company's pension deficit was £1.9 billion at the end of October.

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It plans to make a one-off £1 billion payment into the pot in the coming months, and will pay around £240 million into the scheme in the year ending March 2020, and another £250 million the next year.

Chief executive Charles Woodburn said: "2019 has been a year of significant progress for BAE Systems. We delivered a good set of financial results in line with guidance, growing sales and earnings, with improved operational performance and increased investment in the business to underpin our growth outlook.

"Strategically we took a number of actions to strengthen the portfolio and the pensions agreement announced today is good for all stakeholders.

"These will help to accelerate our strategy and further our growth outlook. We have a large order backlog and remain focused on strong programme performance to deliver a sustainable business model with enhanced financial performance."