London — British defence giant BAE Systems has enjoyed stronger sales as countries increase military spending amid the Russian war in Ukraine.

The FTSE 100-listed company said that many of the countries it operates in have either announced increases in defence spending, or are making plans to lift spending "to address the elevated threat environment.

"Most major defence programmes tend to be long-lasting and involve contracts trading for many years, which means the firm expects to grow in the long-term, it said.

BAE, which builds ships, submarines and fighter jets, reported 18 billion pounds ($21.3 billion) in orders secured in the first half of the year, and a further 10 billion pounds since then.

It said it is on track to have a "very strong" year of orders and expects margins to grow into the new year.

Furthermore, the recent strengthening of the dollar against the pound could propel its reported earnings by a significant amount, with sales expected to increase by 7%-9% for the full year.

Charles Woodburn, BAE's chief executive, said: "Looking forward, our large order backlog, diverse portfolio position and focus on programme performance position us well for another year of top-line growth and margin expansion in 2023.

"We see sales growth coming from all sectors and opportunities to further enhance the medium-term outlook as our customers address the elevated threat environment."

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