BAE Systems wins £285m Royal Navy deal as shares continue recovery
Defence giant BAE Systems has won a Royal Navy contract worth almost £300m which will support more than 200 UK jobs.
The London-listed group has been hired to maintain and modernise combat management systems (CMS) on Royal Navy vessels.
They include Type 23 frigates, Type 45 destroyers, Queen Elizabeth Class aircraft carriers and Type 26 frigates.
The £285m contract, dubbed RECODE (Real-time Combat System Open Data Enablers), is to support hundreds of jobs at BAE Systems in Filton, Dorchester, New Malden, Frimley and Portsmouth.
The deal comes after shares in BAE Systems continue their recovery in January following a slump that first started towards the beginning of November 2024.
Commodore Phil Game, defence equipment and support, Royal Navy, said: “This programme will ensure our Royal Navy vessels have robust, future-ready combat systems.
“By working closely with industry partners, we’re not only enhancing our naval capabilities but also supporting skilled jobs and expertise in the UK defence sector.”
Captain Kevin Miller, Royal Navy combat systems design authority, added: “In today’s challenging battle space, we must adapt and evolve rapidly.
“This programme delivers the agility we need to maintain our military advantage.”
Shares in BAE Systems were being traded at 1,393p on 11 November last year but gradually fell for the rest of 2024 to end at 1,148p.
However, since the turn of the year, BAE Systems’ shares have grown in value to 1,241p.
At the end of October 2024, BAE Systems confirmed it was planning to invest £220m to transform its Rochester base into an “advanced technology” factory.
The century-old site, which specialises in aerospace technologies and electronic systems, will be revamped into a “state-of-the-art” 32,000sqm facility.
BAE Systems expects the bigger and “more efficient” factory will create 300 jobs over the next five years on top of the current 1,600 Rochester-based employees.