ROLLS-ROYCE has reported a 32 per cent slump in profits for the first half of the year, but says it remains on track to meet its full-year guidance.

The company, which has two sites in Barnoldswick, has said that its underlying profit before tax was £439 million, compared to £646m a year earlier.

Revenue was also down three per cent – from £6.5 billion to £6.3bn.

Earlier this month, Rolls, which manufactures fan blades for commercial airlines at its Barnoldswick sites, issued its third profit warning in the last 12 months, citing weak demand for some of its aircraft engines as well as falling oil prices.

But despite the latest profits hit, Rolls-Royce chief executive Warren East insisted the company remains on track to hit its 2015 guidance.

He said: “Despite the disappointment of our recent update, our second-half outlook remains positive and full-year guidance remains unchanged.

“The continued growth in our order book demonstrates the long-term demand for our innovative products and services, and underpins my confidence in the fundamental strength of our business.”

He added: “In the near-term, we are managing a significant transition from mature engines to more fuel-efficient ones, such as the Trent XWB, Trent 7000 and Trent 1000.”