finance

Worldwide sales of fighter jets and warships climb by 11 per cent as leaders beef up their armed forces


ORDERS are rolling in for defence giant BAE Systems as governments across the world beef up their armed forces.

Sales of its fighter jets, ships and submarines climbed by 11 per cent to £12billion in the last six months, and bosses believe demand will continue to grow.

BAE Systems' sales of fighter jets, ships and submarines climbed 11 per cent

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BAE Systems’ sales of fighter jets, ships and submarines climbed 11 per cent

The firm landed contracts worth £21.1billion in the six months to the end of June, taking its backlog of orders to a £66.2billion high.

Its shares are the FTSE 100’s second-best performer in the last 18 months, having risen more than 75 per cent — and they added another 5 per cent yesterday.

Boss Charles Woodburn told The Sun that Russia’s invasion of Ukraine “led to defence and security moving up national agendas, and programmes that were already in train are getting accelerated”.

He added that defence orders can take years to complete, which means when the company wins a contract “it delivers over quite some years”.

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That means BAE Systems is perfectly positioned to build up further momentum through organic growth as well as acquisitions.

The company currently builds everything from Eurofighter Typhoon jets to nuclear submarines and combat vehicles, as well as making ammunition for the UK military.

The British success story is good for workers, with 3,000 extra people recruited in the first half of the year and plans to add the same again in the second half.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “With some of BAE’s biggest buyers — the UK, US and Europe — all expected to continue raising defence budgets over the coming years, the sky really is the limit for this jet-maker.”

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The company has also recently opened new US facilities in Texas and Iowa, as well as an engineering and production base in New Hampshire.

Andy Chambers, director of industrials at Edison Group, said: “This bold expansion hints at BAE Systems’ long-term outlook.

“The firm clearly expects a permanently scaled-up demand for armaments in an increasingly uncertain world.”

Rates hit Wimpey’s profits

Some borrowers are taking out lengthier loans than normal to be able to afford a home, but others are being priced out entirely

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Some borrowers are taking out lengthier loans than normal to be able to afford a home, but others are being priced out entirelyCredit: Getty

HIGHER mortgage rates are hitting potential homebuyers and builder Taylor Wimpey.

Some borrowers are taking out lengthier loans than normal to be able to afford a home, but others are being priced out entirely.

The builder felt the knock-on effects of a sharp rise in mortgage costs in June, when the Bank of England increased the base interest rate from 4.5 per cent to 5 per cent.

Profits for the first six months of the year dropped by 28.9 per cent to £237.7million.

Chief executive Jennie Daly said: “The first half of the year has been characterised by variable market conditions including substantially higher mortgage rates.”

The housebuilder said 27 per cent of first-time buyers are taking mortgages of over 36 years, compared with just 7 per cent in 2021.

For second-time buyers, 42 per cent are taking mortgages for over 30 years, up from 28 per cent in 2021.

Haleon’s gleaming

SENSODYNE toothpaste-maker Haleon has raised its sales forecasts after price increases helped to boost business.

Revenues jumped 10.6 per cent in the last six months to £5.7billion.

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It reported 10.4 per cent organic growth, with 7.5 per cent directly attributable to increased prices, and 2.9 per cent to higher sales volumes.

The Panadol-maker now expects to deliver revenue growth of between 7 per cent and 8 per cent for the year.

Drop in shoppers

The group blamed rising interest rates, rain and ongoing rail disruption for the drop in demand

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The group blamed rising interest rates, rain and ongoing rail disruption for the drop in demandCredit: PA:Press Association

RETAIL analyst MRI Springboard said footfall in shops fell in the month of July for the first time since it started publishing data in 2009.

The group blamed rising interest rates, rain and ongoing rail disruption for the drop in demand.

Milton Keynes-based MRI Springboard warned shopping woes would continue this month and next.

Spokeswoman Diane Wehrle said: “With the fourth quarter of the year looming, and many holidays paid for or taken, it’s inevitable consumers’ attention will now turn towards planning for Christmas spending.

“This may well dampen footfall further in the latter part of the summer.”

Footfall across all UK retail destinations fell by 0.3 per cent from June to July, compared with a 3.7 per cent rise from May to June.

High Streets accounted for the total reduction with a month-on-month fall of 1.7 per cent, and a fall of 15.5 per cent compared with pre-pandemic 2019.

But retail parks and shopping centres actually saw a small footfall increase over the month, of 0.7 per cent and 1.7 per cent respectively.

ASDA fuel track

ASDA has become the first supermarket to publish local fuel prices online so drivers can compare on value before they leave home.

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The supermarket said prices for each filling station will be available for customers from 10.30am each day on the Asda Store Locator pages on its website — with the previous day’s closing price also shown.

The budget-friendly move comes amid calls for greater transparency by supermarkets on fuel-pricing, made by both the Government and the UK competition watchdog.

Virgin debt rise

Virgin will close another 39 branches, leaving 91 across the UK

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Virgin will close another 39 branches, leaving 91 across the UKCredit: Getty

HARD-pressed credit card borrowers falling behind with their payments have increased bad debts at high street bank Virgin Money.

Its provisions for loans likely to turn sour have risen to nearly £550million in the past three months, up from £526million.

Boss David Duffy said: “Our overall credit quality remains stable.”

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Virgin will close another 39 branches, leaving 91 across the UK.

The bank already said it plans to shut almost a third of its branches because of the online banking shift.

Greggs X Primark

GREGGS has opened its sixth shop in a PRIMARK as the baker and fashion firm grow their partnership.

The latest Tasty by Greggs bakery opened in Leeds.

It follows ones in Newcastle, Birmingham, Bristol, Liverpool, and London’s Oxford Street.

Shares

BARCLAYS – down 4.96 at 151.42
BP- down 8.15 at 473.60
CENTRICA – down 0.90 at 139.05
HSBC – down 18.00 at 636.90
LLOYDS – down 1.08 at 43.26
M&S – down 0.80 at 206.40
NATWEST – down 5.10 at 233.10
ROYAL MAIL – down 4.30 at 262.10
SAINSBURY’S – down 3.40 at 275.60
SHELL – down 33.00 at 2,318.50
TESCO – down 3.80 at 255.00





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