Shares of BAE Systems PLC (LON: BA.) soared 7% after the defence and security giant said it would restart dividend payouts.
The maker of Typhoon fighter jets reported that sales increased 4% to £9.87 billion in the first half of this year. Still, BAE saw its underlying earnings before tax plunging 11% to £895m, from £999 million a year ago.
“We have delivered a robust performance in the first half of the year, thanks to the efforts of all of our employees. We started the year from a strong position and we have taken actions to enhance our resilience, ensuring we continued to deliver against our customer priorities, whilst keeping our employees safe,” Chief executive Charles Woodburn.
Despite the coronavirus hit, order intake jumped from £8.41 billion to £9.33bn billion on a year-to-year basis. As a result, BAE declared an interim dividend of 13.8p per share for 2019, payable in September. Moreover, the firm also declared an interim half-year dividend of 9.4p, payable in November.
“Assuming no significant Covid-19 resurgence, we expect a good second half to the year. Demand for our capabilities remains high and we recognise our role not only in supporting national security, but also in contributing to the economies of the countries in which we operate,” Woodburn added.
BAE share price rose 7% to print a fresh 1-month high above 500p.