BAE Systems repeats guidance after 'good momentum' in first quarter

BAE Systems has reported a good start to the new financial year, with directors confident the good momentum is in line with full year targets.

Speaking at the FTSE 100 company's annual shareholder meeting, chief executive Ian King is due to say: "Whilst economic and geo-political conditions remain volatile, we have started the year with good momentum and the business is performing well. In 2016 and beyond, we are well placed to continue to generate attractive returns for shareholders."

BAE said trading for the period has been consistent with management expectations at the time of the annual results in February and so the outlook remains unchanged.

Guidance for the 2016 financial year was restated, with underlying earnings per share expected to be approximately 5% to 10% higher than the adjusted underlying earnings per share of 36.6p last year.

The company also released some contract news, including the April signing by Italian Eurofighter partner, Finmeccanica, of a contract for the supply of 28 Typhoon aircraft to Kuwait, which will lead to approximately £1bn of work for BAE.

After the news that UK and French governments in early March agreed a new €2bn (£1.6bn) project to build an unmanned combat air system demonstrator, which will be contracted out to companies in 2017, BAE also won a £472m ship demonstration contract extension with the UK Ministry of Defence, a $149m (£105m) amphibious assault vehicle contract for the Japanese Ministry of Defence, contracts of £300m to support the UK's fleet of Hawk fast jet trainer aircraft until 2020, and a Swedish government award valued at $182m (£128m) to refurbish 262 combat vehicles.