Income statement for the year ended 31 December
2023 £m | 2022 £m | 2021 Re-presented1 £m | 2020 £m | 2019 £m | ||
---|---|---|---|---|---|---|
Continuing operations | ||||||
Sales2 | ||||||
Electronic Systems | 5,458 | 5,057 | 4,491 | 4,557 | 4,439 | |
Platforms & Services | 3,922 | 3,688 | 3,395 | 3,503 | 3,337 | |
Air | 8,058 | 7,698 | 7,449 | 7,910 | 7,457 | |
Maritime | 5,536 | 4,598 | 4,169 | 3,257 | 3,116 | |
Cyber & Intelligence | 2,321 | 2,205 | 1,923 | 1,812 | 1,732 | |
HQ | 471 | 420 | 281 | 190 | 387 | |
Intra-group sales | (482) | (410) | (398) | (367) | (359) | |
25,284 | 23,256 | 21,310 | 20,862 | 20,109 | ||
Underlying EBIT3 | ||||||
Electronic Systems | 878 | 838 | 766 | 674 | n/a | |
Platforms & Services | 354 | 326 | 259 | 190 | n/a | |
Air | 949 | 849 | 772 | 909 | n/a | |
Maritime | 425 | 356 | 351 | 279 | n/a | |
Cyber & Intelligence | 199 | 232 | 179 | 135 | n/a | |
HQ | (123) | (122) | (122) | (150) | n/a | |
2,682 | 2,479 | 2,205 | 2,037 | - | ||
Underlying EBITA4 | ||||||
Electronic Systems | n/a | n/a | n/a | n/a | 687 | |
Platforms & Services | n/a | n/a | n/a | n/a | 267 | |
Air | n/a | n/a | n/a | n/a | 887 | |
Maritime | n/a | n/a | n/a | n/a | 268 | |
Cyber & Intelligence | n/a | n/a | n/a | n/a | 91 | |
HQ | n/a | n/a | n/a | n/a | (83) | |
- | - | 2,117 | 1,928 | |||
Adjusting Items5 | ||||||
Profit/(loss) on business transactions | - | 94 | 158 | (5) | 9 | |
Profit on sale of investment property | - | - | 182 | - | - | |
Settlement gain on transfer of US pension liabilities | - | - | - | 64 | - | |
Impairment - inventory write down re business exited in 2018 | - | - | - | (13) | - | |
Derecognition of intangible assets | - | - | - | - | (36) | |
Guaranteed Minimum Pension equalisation charge | - | - | - | (7) | - | |
Gain related to past services on the pension schemes | - | 13 | - | - | - | - |
Acquisition-related (costs)/income | (20) | (16) | 10 | (20) | - | |
EBIT3 | 2,722 | 2,570 | 2,555 | 2,065 | n/a | |
EBITA4 | n/a | n/a | n/a | n/a | 2,090 | |
Amortisation of programme, customer-related and other intangible assets, and impairment of intangibles3 | (116) | (111) | (101) | (46) | n/a | |
Amortisation and impairment of intangible assets4 | n/a | n/a | n/a | n/a | (115) | |
Financial and taxation expense of equity accounted investments | (33) | (75) | (65) | (80) | (76) | |
Operating profit | 2,573 | 2,384 | 2,389 | 1,930 | 1,899 | |
Net finance costs | (247) | (395) | (279) | (334) | (273) | |
Profit before taxation | 2,326 | 1,989 | 2,110 | 1,596 | 1,626 | |
Taxation expense | (386) | (315) | (198) | (225) | (94) | |
Profit for the year | 1,940 | 1,674 | 1,912 | 1,371 | 1,532 | |
Balance sheet as at 31 December7 | ||||||
2023 £m |
2022 £m |
2021 £m |
2020 £m |
2019 £m |
||
Intangible assets | 12,099 | 12,644 | 11,716 | 11,745 | 10,371 | |
Property, plant and equipment, right-of-use assets and investment property6 | 5,003 | 4,723 | 4,010 | 3,836 | 3,712 | |
Equity accounted investments and other investments | 916 | 886 | 630 | 409 | 441 | |
Working capital6,7 | (5,468) | (4,119) | (3,740) | (3,699) | (3,378) | |
Lease liabilities | (1,396) | (1,582) | (1,252) | (1203) | (1,291) | |
Net other financial assets and liabilities | (112) | (138) | (1) | 36 | 34 | |
Group's share of the post-employment benefits surplus /(deficit) | 229 | 646 | (2,124) | (4,485) | (4,455) | |
Net tax assets and liabilities | 474 | 363 | 589 | 906 | 690 | |
Net debt | (1,022) | (2,023) | (2,160) | (2,718) | (743) | |
Net assets held for sale | - | - | - | 94 | 130 | |
Net Assets | 10,723 | 11,400 | 7,668 | 4,921 | 5,511 | |
Non-controlling interests | (164) | (185) | (232) | (278) | (104) | |
Total equity attributable to equity holders of BAE Systems plc | 10,559 | 11,215 | 7,436 | 4,643 | 5,407 | |
Movement in net debt for the year ended 31 December | ||||||
2023 £m |
2022 £m |
2021 £m |
2020 £m |
2019 £m |
||
Net cash flow from operating activities | 3,760 | 2,839 | 2,447 | 1,166 | 1,597 | |
Deduct: Net capital expenditure8 | (789) | (519) | (209) | (392) | (454) | |
Deduct: Principal element of lease payment and receipts | (282) | (227) | (207) | (226) | (230) | |
Add back: Dividends received from equity accounted investments | 134 | 94 | 57 | 27 | 142 | |
Add back: Taxation | 395 | 365 | 234 | 251 | 252 | |
Operating business cash flow | 3,218 | 2,552 | 2,322 | 826 | 1,307 | |
Deduct: Taxation paid | (395) | (365) | (234) | (251) | (252) | |
Deduct: Net interest paid | (230) | (237) | (224) | (208) | (205) | |
Free Cash Flow9 | 2,593 | 1,950 | 1,864 | 367 | 850 | |
Acquisitions and disposals | (22) | (38) | 213 | (1,674) | 74 | |
Dividends paid (including non-controlling interests) | (945) | (968) | (979) | (765) | (780) | |
Purchase of own shares | (561) | (788) | (368) | - | - | |
Other movements (including foreign exchange)10 | (64) | (19) | (172) | 97 | 17 | |
Net decrease/(increase) in net debt | 1,001 | 137 | 558 | (1,975) | 161 | |
Opening net debt | (2,023) | (2,160) | (2,718) | (743) | (904) | |
Closing net debt
|
(1,022) | (2,023) | (2,160) | (2,718) | (743) | |
Other information | ||||||
2023 |
2022 |
2021 |
2020 |
2019 | ||
Continuing operations | ||||||
Basic earnings per share - total (pence) | 61.3 | 51.1 | 55.2 | 40.7 | 46.4 | |
Basic earnings per share - underlying11 (pence) excluding one-off tax benefit (derived from EBIT) | 63.2 | 55.5 | 47.8 | 44.3 | n/a | |
Basic earnings per share - underlying12 (pence) excluding one-off tax benefit (derived from EBITA) | n/a | n/a | n/a | n/a | 45.8 | |
Basic earnings per share - underlying11 (pence) including one-off tax benefit (derived from EBIT) | 63.2 | 55.5 | 50.7 | 44.3 | n/a | |
Basic earnings per share - underlying12(pence) including one-off tax benefit (derived from EBITA) | n/a | n/a | n/a | n/a | 50.8 | |
Order backlog13 including the Group's share of equity accounted investments (£bn) | 69.8 | 58.9 | 44.0 | 45.2 | 45.4 | |
Dividend per ordinary share (pence)14 | 30 | 27.0 | 25.1 | 23.7 | 23.2 | |
Number of employees, excluding share of employees of equity accounted investments, at year end | 92,000 | 84,000 | 82,000 | 81,000 | 79,000 | |
Capital expenditure including leased assets15(£m) | 516 | 780 | 697 | 715 | 715 |
- With effect from 2022, the Group established a new Digital Intelligence business, bringing together our non-US digital and data capabilities to further strengthen how we deliver these services and capabilities for our customers. The new Digital Intelligence business is reported within the Cyber & Intelligence segment. In addition, our BAE Systems Australia business transitioned from the Air segment to the Maritime segment. Comparative segmental financial information for 2021 has been re-presented to reflect the new business structure. The information presented for 2019 to 2020 reflects the structure prior to the re-organisation.
- Revenue plus the Group's share of revenue of equity accounted investments, excluding subsidiaries' revenue from equity accounted investments.
- Operating profit excluding amortisation of programme, customer-related and other intangible assets, impairment of intangible assets, finance costs and taxation expense of equity accounted investments (EBIT) and adjusting items.
Underlying EBIT has been used as a profitability measure from 2020. - Operating profit excluding amortisation and impairment of intangible assets, finance costs and taxation expense of equity accounted investments (EBITA) and adjusting items.
Underlying EBITA has been used as a profitability measure for 2019 numbers. - Adjusting items are items of financial performance which have been determined by management as being material by their size or incidence and not relevant to an understanding of the Group's underlying business performance and includes; profit or loss on business transactions, the impact of substantively enacted tax rate changes, and costs incurred which are one-off in nature - for example non-routine costs or income relating to post-retirement benefit schemes.
- Funding received from the UK Government for property, plant and equipment at Barrow-in-Furness, UK, was previously reported against the associated assets in property, plant and equipment, right-of-use assets and investment property. From 2022, costs reimbursed from the UK Government for these works has been presented as working capital. The prior years have been re-presented to reflect this change.
- Inventories, plus trade, other & contract receivables and contract liabilities, trade & other payables, and provisions. 2019-2021 comparatives have been re-presented together as working capital to align with presentation in the 2023 Annual Report.
- Includes net expenditure on property, plant and equipment (net of proceeds from funding of assets), investment property, intangible assets, and other investments, and equity accounted investment funding.
- Free cash flow provides a measure of cash generated by the Group's operations after servicing debt and tax obligations, available for use in line with the Group's capital allocation policy.
- Includes cash flows from matured derivative financial instruments, foreign exchange, cash collateral and other non-cash movements.
- Basic earnings per share excluding amortisation of programme, customer-related and other intangible assets, impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items (EBITBasic earnings per share excluding post-tax impact of amortisation of programme, customer-related and other intangible assets, impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items attributable to shareholders.
- Basic earnings per share excluding amortisation and impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and adjusting items (EBITA).
Underlying EBITA has been used as a profitability measure for the 2019 numbers. - Funded and unfunded unexecuted customer orders including the Group's share of order backlog of equity accounted investments. Unfunded orders include the elements of US multi-year contracts for which funding has not been authorised by the customer.
- An interim dividend of 13.8p per share was paid in 2020, in respect of the year ended 31 December 2019, having been proposed as a 2019 final dividend but deferred in light of the pandemic.
- Cash expenditure on the purchase of; property, plant and equipment, investment property, other investments, intangible assets, and equity accounted investment funding plus the principal element of finance lease payments net of funding received from the UK Government relating to property, plant and equipment in Barrow-in-Furness, UK.
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