BAE Systems boosted by increased defence spending
Defence giant BAE Systems has achieved "good momentum" in the early part of the year, the company's annual general meeting will hear today.
The company, which has an operation maintaining armoured vehicles in Hadley Park in Telford, has benefited from countries loosening the purse strings when it comes to defence.
Trading has been in line with management expectations, and underlying earnings per share are expected to rise by five to 10 per cent.
Chief executive Ian King, who will step down on July 1 to be replaced by Charles Woodburn, said: "We have started the year with good momentum building on a strong operational performance in 2016 and the business is performing well.
"Our strategy is well defined, we have a large order backlog, long-term programme positions and a well balanced portfolio.
"With an improving outlook for defence budgets in a number of our markets, in 2017 and beyond we are well placed to continue to generate attractive returns for shareholders."
BAE Systems will announce its results for the first half of the year on August 2.
The global group has won a number of contracts over the period, including a £419m contract to provide ultra-lightweight howitzers to India, and the full £1.4bn contract for the sixth Astute Class submarine for the Royal Navy.
"The result of the UK general election on 8 June and negotiations to determine the terms of the UK's exit from the EU thereafter are expected to provide greater clarity in the medium term as to the economic outlook," the company said.
