Rolls-Royce does not expect its sales or profits to grow this year, the East Lancashire aerospace giant has said.

The engine maker, which employs 1,000 in Barnoldswick, said its results would be similar to the £10billion turnover and pre-tax profits of £915million reported last year.

However, the ambitious firm was still expected to double in size by 2020, sparked by huge growth in Asian markets.

Chief executive Sir John Rose said: “Whilst we are seeing signs of stabilisation and modest improvement in some parts of the global economy, to which our businesses are exposed, the overall environment remains challenging.”

Rolls-Royce remains committed to investment at Barnoldswick, where new machinery and around 100 new jobs are planned based on the firm’s involvement in the multi-billion pound Joint Strike Fighter project.

However, it was revealed yesterday that the company was in talks with the US government to save its engine from being axed with the project.