High-flying BAE to buy drone companies amid defence boom

BAE Systems is looking to buy more companies that design and manufacture drones as global geopolitical tensions lead to a boom in defense spending.

Chief executive Charles Woodburn, pictured, said the UK’s largest military contractor was considering a range of potential acquisition targets.

Earlier this year, BAE bought a British group in the sector called Malloy Aeronautics, whose drones can carry weapons and military supplies. “There are others (that we are looking at),” Woodburn said.

Unmanned drones can be used for surveillance, to deliver objects and even to fire weapons.

They have become a crucial part of the war in Ukraine because they are much cheaper than fighter jets, more discreet and can even be controlled from thousands of miles away.

Woodburn added that the world is seeing a rapid evolution in drone warfare and demand is growing.

His comments came after BAE reported a 13 per cent rise in turnover to £13.4bn. The £39bn company also raised its profit forecasts. BAE shares have increased by 27 percent in the last year.

Conflicts in Ukraine and the Middle East, as well as tensions in regions such as the South China Sea, have led to a sharp rise in military spending around the world. The Labour government has launched a defence sector review that will set out the UK’s long-term spending plans by summer 2025.

Prime Minister Keir Starmer has pledged to increase spending from 2 percent of GDP to 2.5 percent, which would boost the UK’s huge local industry.

The review is being led by Lord Robertson of Port Ellen, former Defence Secretary under Tony Blair and Secretary General of Nato.

But it has raised questions about funding for the future of the Global Fighter Air Programme, known as Tempest, which sees the UK collaborate with Italy and Japan to design the next generation of fighter jets.

The Mail on Sunday reported last month that the government could try to work with a European fighter jet programme on components and systems, which could reduce costs.

Woodburn said the company was also looking at “potential opportunities” to buy smaller British companies working in other areas, such as space.