BAE Systems expects to meet guidance for higher earnings this year.

The multinational company, whose division BAE Systems Digital Intelligence is based at Gloucester Business Park in Brockworth, has forecast "further positive momentum" from a recent Government commitment to raise defence spending, Mail Online reports.

As Britain's biggest manufacturer and the largest defence contractor in Europe, the FTSE 100 group's order book, like that of many western defence companies, has swelled over the last two years as governments have reacted to heightened geopolitical risk in the wake of the war in Ukraine and amid growing tensions with China.

BAE said it was sticking to forecasts given in February for its earnings per share to grow 6% to 8% in 2024 on revenues 10% to 12% higher.

It said it would benefit from the recent passing of the US supplemental aid package to Ukraine and the commitment Britain made in April to spend 2.5% of GDP a year by 2030.

Ahead of this morning's AGM, BAE Systems chief executive Charles Woodburn said: "Trading so far this year has been in line with expectations. Operational performance continues to be strong and our backlog and programme incumbencies underscore our confidence in our long-term value-creating model.

"We're continuing to deliver on mission critical requirements for our customers, and progress our long-term strategic programmes within the elevated threat environment.

"We have commenced the integration of our new Space & Mission Systems business in the US following the closing of the Ball Aerospace acquisition in February. Our global presence and diverse portfolio of products and services provide high visibility for top-line growth, margin expansion and cash generation in the coming years."