KEY POINTS
FINANCIAL
- Sales1 were £16.6bn. The year-on-year reduction of £1.5bn reflected £0.6bn of adverse exchange rate translation, the expected volume reductions in Land & Armaments and the previous year's benefit from the one-off price settlement for Salam Typhoon.
- Underlying EBITA2 was £1,702m. The year-on-year position was broadly unchanged after allowing for exchange rate translation and the one-off 2013 price settlement.
- Margin performance delivered a return on sales of 10.2%.
- Underlying earnings per share increased from 37.6p to 38.0p after excluding the benefit from the price escalation settlement in 2013.
- £925m returned to shareholders in 2014, from share repurchase programme and dividends.
- Large order backlog of £40.5bn.
OPERATIONAL
- Acceleration of capability expansion on the Typhoon aircraft with commitments to additional weapons integration and E-Scan radar.
- Major milestone achieved with naming and float-up of HMS Queen Elizabeth aircraft carrier. Over £1bn of Royal Navy contracts awarded.
- Contract award received for the USArmored Multi-Purpose Vehicle, creating a new franchise.
- Selected to provide the integrated flight control electronics and other systems for next-generation Boeing 777X aircraft.
- US-managed business streamlined to improve competitiveness.
- Operational progress made, but further charges taken, on US commercial shipbuild contracts.
- BAE Systems Applied Intelligence delivered organic sales growth of 10%, driven by growth in commercial cyber security. Order backlog increased 37%.
- SilverSky acquisition completed, enhancing the Group's strategy to grow the commercial cyber business.
