British aerospace multinational BAE Systems traded in line with expectations for the past six months, according to interim results posted on Wednesday July 27.
Underlying earnings increased by 8.1%, though operating profit and net cash flows saw a 21% year-on-year decline.
Net debt increased by £975mln, and now stands at over £3bln.
Principal concerns for the weapons manufacturer include government contract risks, supply chain issues, competition in global markets and defence spending.
Chief executive officer Charles Woodburn said: “Our diverse portfolio, together with our focus on programme execution, cash generation and efficiencies are helping us navigate the current macroeconomic challenges and position us well for sustained top line and margin growth in the coming years.”
A 5% interim dividend increase to 10.4p combined with a £1.5bln share buyback programme was announced.
BAE Systems also announced chair designate Cressida Hogg, who will succeed Sir Roger Carr in May 2023.