The war in Ukraine has made alert investors look at defense companies again, says BAE's boss
BAE's boss says the war in Ukraine has made alert investors look again at defense companies.
Charles Woodburn revealed that BAE's share performance languished for years as ESG-obsessed British funds shunned the company.
But US investors appeared not to be as concerned with ESG (Environmental, Social, Governance) considerations, meaning BAE's US rivals are much more highly valued.
Mr Woodburn said there has now been a “reappraisal of ESG in light of the tragic conflict in Ukraine”.
He told The Sun: “Democracy and freedom of speech require a strong defense structure.”
Mr Woodburn said he was pleased that BAE remains listed on the London stock exchange, despite earning most of its revenue abroad.
And despite only four of BAE's top 15 investors being British, he said: “We've closed that valuation gap.”
The chief's comments came as BAE revealed a record £55 billion backlog of orders from governments due to the “heightened threat environment” globally following Russia's invasion of Ukraine.
BAE won new contracts worth £38 billion last year, including contracts related to the UK's nuclear deterrent submarines.
The company is also ramping up production of so-called 'shoot and scoot' towed artillery guns.
BAE said last month it has restarted production of Britain's M777 howitzer, some of which have been donated to Ukraine.
BAE, which hired 7,000 staff last year, recorded a nine percent increase in annual turnover to £25.3 billion.
And it expects sales to rise 12 percent this year thanks to new orders for fighter jets, combat vehicles and weapons.
£275 million for BT tower hotel
THE BT Tower, one of the most recognizable landmarks in London's skyline, is set to become a luxury mega-hotel.
BT Group has sold the building to American MCR Hotels for £275 million.
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MCR already owns the Sheraton Times Square Hotel and the High Line Hotel in New York.
The Grade II listed BT Tower was built by the Post Office in 1961.
The revolving restaurant at the top was permanently closed after a bomb went off in 1971.
Despite standing 600 feet tall in the heart of London, it was an official state secret for many years and was only referred to as Site 23.
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HSBC hit by China
HIGHER interest rates helped HSBC's profits soar by almost 80 per cent to £24 billion last year – but ended 2023 on a dip.
Its shares fell 8.39 per cent yesterday after it took a £2.4 billion charge on the value of its stake in a Chinese bank.
HSBC said this caused profits to fall 80 percent in the final quarter of last year.
Banks in China are suffering from the country's debt-laden real estate crisis.
Ashley in 'snob' dig at the bank
BILLIONAIRE Mike Ashley yesterday accused Morgan Stanley of snobbery during a showdown at the Supreme Court.
His Frasers Group is suing the Wall Street bank for £40m over a £790m margin call – a demand he provide collateral to cover potential losses on a trade that left them heavily exposed.
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His lawyer Adrian Beltrami described the call as “out of proportion to any actual risk”.
He told the court in London: “The evidence unfortunately suggests that Morgan Stanley's erratic behavior was at least partly the result of snobbery.”
He said bank staff called Mr Ashley “an upstart” and claimed the negative reaction was “class-driven”.
Mr Ashley said the shock of it was “like an atomic bomb hitting Slough”.
It is his second trial in five years after winning a £15 million case against ex-consultant Jeff Blue, who described the tycoon vomiting into fireplaces during staff drinking sessions.
27% Heathgrow
HEATHROW has returned to profitability thanks to pent-up demand for holidays following Covid travel restrictions.
Last year the aircraft transported 79.2 million passengers, 29 percent more than in 2022.
Revenues rose 27 percent to £3.68 billion, boosting profits to £38 million.
A year earlier it made a loss of £684 million.
The airport still wants to increase airline fares, which will translate into higher fares for passengers.
Boss Thomas Woldbye said it was still considering building a third runway.
job boost at Aldi
ALDI will hire another 5,500 employees this year as the discount supermarket plans more stores.
The grocer already has more than 1,000 stores and 45,000 employees.
Shop and warehouse workers earn a starting salary of £12 per hour.
MPs were angry about the IMF
The International Monetary Fund has been blasted by MPs for refusing to provide evidence on its economic forecasts for Britain.
The IMF declined an invitation from the Treasury Select Committee to join other forecasters in a discussion on the economy.
Chairman Harriett Baldwin called the no-show “annoying.”
She said: “They continue to make public statements about Britain from their perch in Washington.
“Given that the IMF is a government agency partly funded by Britain, I find this unbelievable.”