BAE SYSTEMS TO CASH IN ON DEFENCE SPENDING BOOM

BAE Systems looks set to cash in on increased security spending across Europe following the Russian invasion of Ukraine.

Ahead of its annual general meeting in Farnborough, Hampshire, Britain’s largest defence firm highlighted ‘a pipeline of opportunities’ as countries address ‘the heightened threat environment’ facing the world.

A spokesman said: ‘Global events have more than ever demonstrated the need for strong defence and security in the face of aggression by nation states. The defence industry, and we at BAE Systems, provide critical capabilities and support to our governments and their allies to fulfil their primary obligations to keep their citizens safe.’

It highlighted the ‘significant step up’ in German expenditure and a renewed commitment by Nato members to spend 2pc of GDP on defence.

BAE said it expects sales to rise by between 2pc and 4pc this year while profits would be up 4pc to 6pc. BAE shares have soared almost 40pc this year, though they slipped 0.7pc, or 5.6p, to 760p yesterday.