Director dealing has been heating up at specialist engineer MS International (MSI:AIM) after the government’s 2015 Strategic Defence and Security Review revealed a commitment to one of its key markets.

MSI’s Defence division provides naval weapons, tactical and navigation equipment. Moves to support the current number of Royal Navy surface warships, uphold the current naval ship building programme and assist smaller companies to compete in world defence equipment markets are all bullish factors flagged in MSI’s November half-year report.

After one smaller director deal since that announcement, executive chairman Michael Bell’s wife bought 50,000 shares in the business on 22 February 2016 at 196p a share, increasing the Bell family stake to 29.2%.

The shares were bought from non-executive director David Pyle, whose stake declined to 10.7%.

Defence contractors in general have become more optimistic on order intake after several years of sluggish growth because of pressures on public finances.

As well as the UK’s commitment to spend 2% of gross domestic product on defence, the US has also moved to increase spending above previously-set Budget Control Act caps for each year through 2017.

Doncaster-based MS International’s other two units are Forgings, which provides components, heat treatment and testing to the industrial sector; and Petrol Station Superstructures, which provides canopies, shops and car wash products.

Earnings per share was 2.4p in the 26 weeks to 31 October 2015 and 8.2p in the year to 2 May 2015. The shares change hands for 183p, valuing the business at £31 million, though the stock is thinly traded.

A high quality business with good prospects.