THE chairman of BAE Systems has predicted a bright year ahead for the company.

Dick Oliver spoke today following the firm's annual general meeting in London which saw protestors gathering outside to call for the re-opening of a Serious Fraud Office inquiry into the firm's arms deals with Saudi Arabia.

The defence giant employs which employs about 5,000 workers at Salmesbury, said the company's US operations arising from the weakness of the US dollar would not affect trade.

Mr Oliver said: "The company has reviewed the current trading outlook and has concluded that, notwithstanding the translation effects on the financial results of the company's US operations arising from recent weakness of the US dollar, BAE Systems continues to anticipate a further year of good growth in 2007, in particular from the land and armaments sector and from further progress in UK programmes.

"The company anticipates good operating cash flow again in 2007."

At the meeting it was also announced Mr Oliver would continue as chairman for three years.

Protestor Symon Hill, spokesman for CAAT, which works for the reduction and ultimate abolition of the international arms trade, said: "We urge the Government to reopen the BAE-Saudi corruption inquiry."

In December The Serious Fraud Office and the Government announced that they were suspending an investigation into BAE Systems' arms deals with Saudi Arabia.