BAE Techniques reported its finest 12 months for brand 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 struggle in Ukraine drags on.

The FTSE 100 group, which builds all the things from Eurofighter Storm jets to nuclear submarines and fight autos, stated it took in a document £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 gear and assist allies”. 

BAE has seen its shares soar as western governments have pledged to extend navy 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 have been up 4.4 per cent on a continuing forex 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 have been up 5 per cent on a continuing forex foundation.

Free money movement of £2bn exceeded analyst expectations. BAE stated it could suggest a 7.6 per cent improve in its remaining dividend to 27p.