AEROSPACE giant BAE Systems which employs more than 10,000 people at its Warton and Samlesbury military aircraft factories in Lancashire has reported a 10 per cent increase in its operating profit for the first half of the year.

The company saw its earnings before tax and interest rise to £1.3billion on sales of £12billion, up 11 per cent for the six months ending on June 30.

Chief executive Charles Woodburn also revealed that its order book is now worth a record £66.2bn with new business of £21.1bn secured.

He highlighted the achievements of its Lancashire military aircraft factories in his half-yearly financial statement.

They include:

• launching FalconWorks; a new centre for advanced and agile research and technology development in the Air Sector based in Warton;

• the award of a contract extension of £656million to progress the concepting and technology of the next generation combat aircraft, Tempest;

• further progress on the combat air flying demonstrator – the UK’s first combat aircraft in a generation, including aerodynamic engine testing and crew escape;

• achieving the first successful stratospheric flight trial of PHASA-35, a solar-powered uncrewed aircraft, reaching an altitude of more than 66,000ft;

• continuing to develop Typhoon capability, the backbone of European air defence with an £870m contract to deliver the European Common Radar System Mk2 for the RAF’s Typhoon fleet;

• recruiting more than 750 experienced professionals and 600 graduates and apprentices in Lancashire with plans to hire thousands more;

• announcing funding to support young people’s education programmes in Lancashire, helping to enhance digital and cyber skills in the region; and

• investing more than £300,000 in local community projects and charities supporting young people, veterans and the environment.

Mr Woodburn said: "The company, which employs 22,400 people in the North West of England, spent more than £450m with over 750 local suppliers last year, sustaining almost 7,000 further jobs in the region.

The workforce of more than 10,000 at its Warton and Samlesbury sites provides vital frontline combat air capabilities to UK and international customers, making an important contribution to safeguarding national defence and security.

"This includes providing around-the-clock support to the Royal Air Force Typhoon Fleets and F-35 Fleets, maintaining availability of Hawk jet trainer aircraft and playing a key role developing the UK’s future combat air system, Tempest.

"We’ve delivered a strong financial performance in the first half of the year, thanks to the outstanding efforts of our employees.

“With a record order backlog and good operational performance, we’re well positioned to continue delivering sustained growth in the coming years, giving us confidence to continue investing in new technologies, facilities, highly-skilled jobs and in our local communities.”