Ardevora's Lang on BAE Systems' transformation

Defence spending has hit the headlines in recent months, particularly following the surprise election victory of US President Donald Trump.

For income investors in the UK equity market, the logical name to associate with this theme is BAE Systems, the global aerospace and defence business. BAE does a lot of things that are difficult for other groups to replicate, but a significant amount of what the company does makes people nervous. Big defence contracts can go wrong. In addition, BAE Systems has, historically, been more interested in being large than being profitable. Miton's Jane backs global security as a theme amid political risks The company has been in serious financial difficulties in the past, caused by an ...