BAE Systems is poised to receive a big order for new artillery shells to replenish UK stocks sent to Ukraine, according to reports today.
Artillery has been a key weapon for both sides in the war, with BAE Systems told by the Ministry of Defence that orders for more shells are on the way.
A letter of intent has already been sent, according to the Telegraph,as a prelude to confirmed orders to give the company time to ramp up.
Britain has sent more than 16,000 artillery rounds to Ukraine since the start of the war, said the report.
BAE currently manufactures the shells at its plant in Washington in the north-east of England and adds the explosive charges in Glascoed in Wales.
Shares in the weapons maker were among the top performers on the FTSE 100 today following the fatal explosion in Poland overnight.
Originally, this was blamed on Russia, but reports now suggest it was an errant Ukrainian anti-aircraft missile.
In a third-quarter update yesterday, BAE predicted growth would continue with orders set to be strong due to the ‘elevated threat environment’.
“We are tracking towards a very strong year of order intake. With £18bn secured in the first half we have secured a further £10bn since the half year,” the FTSE 100 group said in a statement.
In a note today, Deutsche Bank raised its target price for BAE to 1,000p from 970p highlighting the progress on a £1.5bn share buyback and good operational performance.
Shares today were up 3.5% at 807p.