Against the backdrop of Putin's war on Ukraine and instability elsewhere, arms, security and aerospace giant BAE Systems is celebrating good news with financials that land today to reveal that 2023 was a bumper year for sales and revenue growth.

The multinational company, whose division BAE Systems Digital Intelligence is based at Gloucester Business Park in Brockworth, has revealed that strong programme performance across all sectors of its expertise led to increased profitability which, the Group says, can be attributed to "strong programme execution and internal efficiency efforts".

As Britain's biggest manufacturer and the largest defence contractor in Europe, BAE said the rise in profit reflected an increase in earnings per share amid its ongoing share buyback programme.

Charles Woodburn, Chief Executive, said: "We've delivered a strong operational and financial performance in 2023 and I'm extremely proud of the way our people have delivered cutting-edge equipment and services to our customers, working together with partners across our supply chain."

Performance, combined with BAE's global footprint and record order intake, meant the Group is now well-positioned for sustained growth in the coming years, he added.

"We'll keep driving the business forward, investing in new technologies, facilities and our people. This will help us deliver on our order backlog and help ensure our government customers stay ahead in an uncertain world, whilst delivering increased value to our shareholders and the communities where we operate."

After generating free cash flow of £2.6bn, including net cash flow from operating activities of £3.8bn, the Group closed 2023 with cash of £4.1bn and net debt (excluding lease liabilities) of £1.0bn. This places the business in a strong position to manage the financing associated with its acquisition of Ball Aerospace, which completed this month.

A spokesman added: "Our order backlog has reached a record level of £69.8bn, driven by order intake of £37.7bn following a number of significant awards in the year including SSN-AUKUS, Dreadnought and multiple combat vehicles orders in our Hägglunds business."

The Board has consequently recommended a final dividend of 18.5p, taking the total dividend for 2023 to 30.0p - an increase of 11.1% on last year. Subject to shareholder approval at its 2024 Annual General Meeting, the dividend will be paid on June 3rd to shareholders on the share register on April 19th, 2024.

BAE's acquisition of the US-based Ball Aerospace business from Ball Corporation was agreed at a price of £4.4bn and city analysts forecasting the move last year indicated that it was auspicious: based in Colorado with more than 5,200 employees, Ball Aersopace designs, builds and operate satellites and satellite systems - and the acquisition spells a seat at the table for the US's Department of Defense budget.

Highlights for 2023 included:

● A contract from the Czech Republic for 246 CV90 MkIV infantry fighting vehicles.

● A ten-year contract to continue operating the US Army Ammunition Plant in Holston, Tennessee.

● F-35 aft fuselage manufacturing continued at full-rate production through 2023, with 162 aft fuselages completed.

● 10 Typhoons delivered to Qatar Emiri Air Force, making 18 now in service.

● A new agreement with Saudi Arabia for a further five years of Salam Typhoon support.

● A £2.4bn secured order intake for Dreadnought, with three boats now in construction.

● Construction of new ship assembly hall and Applied Shipbuilding Academy in Glasgow.

● More than £400m UK munitions orders.

● New products for space, multi-domain capabilities and synthetic training in cyber and intelligence.

Brad Greve, Chief Financial Officer, said: "Our 2023 financial results further confirmed our value-compounding model, with strong top line growth, increased profits, strong cash flow generation and earnings progression."

Punchline-Gloucester.com says: "This is excellent news and another aviation feather in Gloucestershire's business cap. We note that BAE currently has a recruitment drive on for a variety of positions at its Brockworth HQ and salute the contribution this employer makes to the county's economic vigour. Well done BAE!"