BAE Methods reported its finest yr for brand spanking new orders in 2022 as Britain’s largest defence contractor benefited from a surge in enterprise from long-term programmes and forecast extra to return because the battle in Ukraine drags on.

The FTSE 100 group, which builds every part from Eurofighter Storm jets to nuclear submarines and fight autos, stated it took in a report £37bn in new orders, propelling its order backlog to £58.9bn.

Charles Woodburn, BAE chief government, stated the corporate anticipated “continued momentum within the medium to long run as governments replenish shares, recapitalise tools and help allies”. 

BAE has seen its shares soar as western governments have pledged to extend army spending within the wake of Russia’s invasion of Ukraine. Its shares have risen 50 per cent over the previous 12 months and closed at 901p on Wednesday in London.

The group, which generates a good portion of its earnings in US {dollars}, additionally benefited from a robust greenback in opposition to the sterling. Gross sales to the tip of December 2022 elevated 9 per cent to £23.3bn on a reported foundation. They had been up 4.4 per cent on a relentless foreign money foundation, BAE’s most popular metric.

Underlying earnings earlier than curiosity and tax rose 12 per cent to £2.5bn on a reported foundation. They had been up 5 per cent on a relentless foreign money foundation.

Free money move of £2bn exceeded analyst expectations. BAE stated it might suggest a 7.6 per cent enhance in its closing dividend to 27p.