THE boss of BAE says the war in Ukraine has made woke investors look again at defence firms.
Charles Woodburn revealed BAE’s share performance languished for many years as UK funds obsessed with ESG shunned the business.
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But US investors proved to be not so worried about ESG (Environmental, Social, Governance) considerations — meaning that BAE’s American rivals have been much more highly valued.
Mr Woodburn said there had now been a “reappraising of ESG in light of the tragic conflict in Ukraine”.
He told The Sun: “Democracy and freedom of speech requires a strong defence structure.”
Mr Woodburn said he was happy for BAE to remain London-listed, despite making the bulk of its revenues overseas.
And despite just four of BAE’s top 15 investors being British he said: “We have narrowed that valuation gap.”
The chief’s comments came as BAE revealed a record £55billion backlog of orders from governments due to the “elevated threat environment” globally following Russia’s invasion of Ukraine.
BAE won new contracts worth £38billion last year, including those 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 was restarting production of the British-made M777 howitzer, some of which have been donated to Ukraine.
BAE, which took on 7,000 staff last year, posted a nine per cent rise in annual sales to £25.3billion.
And it expects sales to rise 12 per cent this year with new orders for jets, combat vehicles and guns.
£275million for BT tower hotel
THE BT Tower, one of the most recognisable landmarks on the London skyline, is to become a luxury mega-hotel.
BT Group has sold the building to the American MCR Hotels for £275million.
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MCR already owns New York’s Sheraton Times Square Hotel and High Line Hotel.
The Grade II listed BT Tower was built by the Post Office in 1961.
Its revolving restaurant at the top was closed permanently after a bomb went off in 1971.
Despite being 620ft tall in the heart of London, it was an official state secret for years and only referred to as location 23.
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HSBC hit by China
HIGHER interest rates helped HSBC’s profits surge last year by almost 80 per cent to £24billion — but it finished 2023 on a downer.
Shares slumped 8.39 per cent yesterday after it took a £2.4billion charge on the value of its stake in a Chinese bank.
HSBC said this caused its profits in last year’s final quarter to fall by 80 per cent.
Banks in China are suffering from the country’s debt-laden property crisis.
Ashley in ‘snob’ dig at bank
BILLIONAIRE Mike Ashley accused Morgan Stanley of snobbery in a high court showdown yesterday.
His Frasers Group is suing the Wall Street bank for £40million over a £790million margin call — a demand he provide collateral to cover possible losses on a trade which heavily exposed them.
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His lawyer Adrian Beltrami branded the call “out of any proportion to any actual risk”.
He told the London court: “The evidence regrettably suggests Morgan Stanley’s erratic behaviour 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 a nuclear bomb hitting Slough”.
It is his second court battle in five years after he won a £15million case against ex-adviser Jeff Blue who described the tycoon vomiting in fireplaces during staff drinking sessions.
27% Heathgrow
HEATHROW has returned to profit on the back of pent-up demand for holidays after Covid travel restrictions.
It flew 79.2 million passengers last year, 29 per cent more than in 2022.
Revenues soared 27 per cent to £3.68billion, helping profits rise to £38million.
It made a loss of £684million a year earlier.
The airport still wants to hike fees on airlines, which will translate into higher fares for passengers.
Boss Thomas Woldbye said it was still considering building a third runway.
Aldi job boost
ALDI is hiring another 5,500 workers this year as the discount supermarket plans more shops.
The grocer already has more than 1,000 stores and 45,000 staff.
Shop and warehouse workers earn a starting salary of £12 an hour.
MPs miffed at IMF
THE International Monetary Fund has been scolded by MPs for refusing to give evidence about its economic forecasts on the UK.
The IMF refused an invite from the Treasury Select Committee to join other forecasters in a discussion on the economy.
Chairwoman Harriett Baldwin called the no-show “infuriating”.
She said: “They continue to utter public pronouncements about the UK from their perch in Washington.
“As the IMF is a public body partly funded by the UK, I find this incredible.”
