BAE Programs reported its greatest 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 come back because the battle in Ukraine drags on.

The FTSE 100 group, which builds every little thing from Eurofighter Hurricane jets to nuclear submarines and fight automobiles, mentioned it took in a file £37bn in new orders, propelling its order backlog to £58.9bn.

Charles Woodburn, BAE chief govt, mentioned 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 powerful greenback towards the sterling. Gross sales to the top 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 foreign money foundation, BAE’s most well-liked 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 foreign money foundation.

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