BAE Systems, which employs 9,500 at its Samlesbury and Warton military aircraft factories, has reported a slight drop in revenue and profits in its half-yearly results.

But it expects the first payment of hundreds of millions on a £5billion contract to supply 24 Eurofighter Typhoon fighter jets to Quatar by September.

The company chief executive Charles Woodburn admitted the financial figures for the six months to June 30 presented a mixed picture but said: "We have a strong foundation to deliver growth."

Operating profits for January to June 2018 were £792m against £885m for the same period last year.

They reflect a fall in revenue from £8,915m to £8,161m for the same six monthly periods in 2018 and 2017. The dividend per share fell from 17.9pence in August 2018 to 14.8p per share this month.

In its half-yearly financial report issued last week, BAE Systems revealed new contacts worth £9.7m over the first six months giving it a healthy order book of £39.7bn.

Its highlights include:

* the March, signing of a Memorandum of Intent between the UK government and the Kingdom of Saudi Arabia to finalise he purchase of a further 48 Typhoon aircraft, worth £10bn, for its air force;.

* BAE Systems and the Government of the State of Qatar signing of a £5bn contract in December 2017 for the supply of 24 Typhoon aircraft to the Qatar Emiri Air Force with an anticipated first payment received in the third quarter of 2018;

• the increasing production of F-35 Lightning II rear fuselage assemblies with the ramp up to full-rate production on track for 2020;

• the signing of an agreement with British SME Prismatic to collaborate on the development of the new solar powered high altitude, long endurance unmanned aerial vehicle;

• the delivery on schedule of a further seven of the second contracted batch of 22 Hawk aircraft to the Royal Saudi Air Force;

• continuing progress on the Kuwait Typhoon contract with 25 of 28 airframes now in work; and

• a September start for 150 apprentices including 25 in the degree level Engineering Degree Apprenticeship Scheme based at Samlesbury, and 50 graduates.

Mr Woodburn said:“We have made good progress in the first half.In this transition earnings year, our group earnings guidance is maintained and, with a large order book and a positive outlook for defence budgets in a number of key markets, we have a strong foundation to deliver growth and sustainable cash flow.”

Chris Boardman, Group Managing Director Air, said: “It’s been an important half for our business. Our teams are working hard to deliver for our customers, with a particular focus on ensuring that Typhoon stands ready to take over key capabilities for the RAF once its Tornado fleet retires next year. "