Britain is one of only three Nato countries that meets the alliance's 2 per cent of GDP threshold on defence spending. Yet despite attaining this symbolic point of pride, the country’s military capability has shrunk by one-third since 2010, according to Lord West, a former top admiral in the British navy and one-time security minister.
The two statistics best explain the doldrums affecting the country’s defence suppliers. Short sellers have honed in on the sector. Share price collapses regularly feature in the business pages devoted to City of London trading.
Aerospace firm Cobham is currently in the cross-hairs. Having recovered confidence from investor doubts a year ago, it was blindsided by selling last week.
The sale of two antennae businesses raising £455 million (Dh2.35 billion) was greeted as a long-run blow to earnings per share, knocking as much as 8 per cent a year from its recurring sales. Despite the assurances of management that the firm would regain core focus, the market worried about its overall financial strength.
“Defence is in trouble because big-ticket items such as aircraft carriers and a replacement for Trident [nuclear missile system] are draining money away from armed forces’ numbers. Ministers and defence chiefs are now publicly lobbying for additional cash,” said Tony Travers, a director of the London School of Economics, in his annual public sector review.
The giant British arms firm BAE Systems (formerly British Aerospace) has undoubtedly benefited from those big-ticket procurement projects as well as buoyant overseas orders in the wake of sterling’s collapse since the Brexit vote in 2016. Its outlook is, however, dogged by concerns that ultimately Britain will fall out of the close network of European defence contractors.
Its smaller rivals have even bigger problems. GKN, which makes more than half its sales from defence and aerospace manufacturing, has been targeted by a hostile takeover bid from Melrose, a turnaround investment firm.
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The management of GKN claims the bid significantly undervalues its business. The argument has won some sympathy from investors.
Stockbroker Jefferies International has been scathing about the £7.4bn Melrose bid despite it representing a 30 per cent premium on the share price prior to the takeover announcement. Shareholders tempted to cash in were liable to be guilty of short-termism in a complex sector with a long-term investment cycle, it said in a client note. “We believe five years is not long in aerospace and not long enough to capture maximum value for GKN aerospace,” it said.
The difficulty of valuing defence businesses can be a running theme. Electronic systems supplier Laird PLC has also struggled despite some analysts valuing the business at twice its current trading price. It remains stuck at the bottom of its target range despite a succession of broker upgrades.
One firm with prospects looking brighter than before is Chemring Group, which more than doubled its dividend when it announced 15 per cent revenue growth in its annual results last month. The weapons supplier went through a cash-call more than a year ago amid a restructuring exercise. Now analysts are upbeat about its outlook, not least because the US President Donald Trump has signalled a huge military build-up.
“In long-term context, Chemring's markets are declared 'emerging from a long period of decline' and US markets look promising after the Senate last September passed a defence bill that backed President Trump's call for a steep increase in military spending - the US constitutes about half of Chemring's revenues, followed by the Middle East, the UK, Asia Pacific and Continental Europe,” said Edmond Jackson of Interactive Investor.
“It's a cynical view, but apart from the UK and Europe perhaps, some three quarters of Chemring's geographic areas look to offer robust if sometimes lumpy prospects.”
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Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
COMPANY%20PROFILE
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Fresh faces in UAE side
Khalifa Mubarak (24) An accomplished centre-back, the Al Nasr defender’s progress has been hampered in the past by injury. With not many options in central defence, he would bolster what can be a problem area.
Ali Salmeen (22) Has been superb at the heart of Al Wasl’s midfield these past two seasons, with the Dubai club flourishing under manager Rodolfo Arrubarrena. Would add workrate and composure to the centre of the park.
Mohammed Jamal (23) Enjoyed a stellar 2016/17 Arabian Gulf League campaign, proving integral to Al Jazira as the capital club sealed the championship for only a second time. A tenacious and disciplined central midfielder.
Khalfan Mubarak (22) One of the most exciting players in the UAE, the Al Jazira playmaker has been likened in style to Omar Abdulrahman. Has minimal international experience already, but there should be much more to come.
Jassim Yaqoub (20) Another incredibly exciting prospect, the Al Nasr winger is becoming a regular contributor at club level. Pacey, direct and with an eye for goal, he would provide the team’s attack an extra dimension.
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Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
UAE currency: the story behind the money in your pockets
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
