BAE SYSTEMS yesterday reported higher sales and revenue for the first half of 2021 as global defence spending rose on the back of the war in Ukraine.

The defence company's sales were up 2.8 per cent from the previous year's first half to hit £10.6bn, while its revenue climbed 4.3 per cent to £9.7bn in the first half of 2022.

BAE Systems also announced that Cressida Hogg, who will join the board as a non-executive director, will take over as chair in March 2023, succeeding current chair, Sir Roger Carr.

Hogg is currently chair of the board of Land Securities and also sits on the board of the London Stock Exchange. She will be the defence firm's first female chair.

"I very much look forward to working with [CEO] Charles and the other board members through the next phase of the company's development," Hogg said. "BAE Systems plays a key role in defence and security both in the UK and internationally."

The company works closely with Saudi Arabia to fulfil contractual obligations with the country, including the Saudi British Defence Co-operation

Programme (SBDCP) agreement which has been renewed for an additional five years.

About a tenth of BAE's sales and revenue were from its dealing with Saudi Arabia, netting the company more than £1bn.

The majority of its sales and revenue came from its work with the US, at over £4.6bn, and over £2.6bn with the UK.

The firm was granted a new nuclear submarine contract and an 18-year contract to continue supporting US intercontinental ballistic missiles.

The company mentioned Ukraine as an operational and strategic key point and said it "closely engaged" with global customers to provide ongoing support wherever requested.

"We see further opportunities to enhance the medium and long-term outlook as our customers commit to increased defence spending to address the elevated threat environment," chief executive Charles Woodburn said.

The company's performance for the year led to directors announcing an interim dividend of 10.4p per share, payable on 30 November 2022.

The firm will also kick off a new share buyback programme of up to £1.5bn over the next three years.

(c) 2022 City A.M., source Newspaper