BAE Systems is set to receive a large order for new artillery shells to replenish UK stocks sent to Ukraine, according to information released today.
Artillery has been a key weapon for both sides in the war, with BAE Systems advised by the MoD that orders for more shells are on the way.
A letter of intent has already been sent, according to the Telegraph, ahead of confirmed orders to give the company time to ramp up.
Britain has sent more than 16,000 artillery shells into Ukraine since the start of the war, according to the report.
BAE currently manufactures the shells at its Washington factory in north-east England and adds the explosive charges at Glascoed in Wales.
Shares of the arms maker were among the best performers on the FTSE 100 today after the deadly 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 continued growth with orders expected to be strong due to the “elevated threat environment”.
“We are heading towards a very good year of order intake. With £18bn secured in the first half, we have secured a further £10bn since the half,” the FTSE 100 group said in a statement.
In a note today, Deutsche Bank raised its price target for BAE to 1,000p from 970p, highlighting progress on a £1.5bn share buyback and strong operational performance.
Shares rose 3.5% to 807p today.