Farnborough-based BAE Systems (www.baesystems.com) has reported what it describes as “a solid overall performance”.

The group announced in a preliminary statement for 2014 that its operating profits increased from £806 million to £1.3 billion, while its underlying earnings before interest, taxes and amortisation fell from £1.9 billion to £1.7 billion. A spokesman said that the year-on-year position was broadly unchanged, after allowing for exchange rate translation and a one-off 2013 price settlement.

Chief executive Ian King said: “In 2014, BAE Systems delivered a solid overall performance, in line with guidance. We continue to win significant new business, with over £10 billion of new orders from the UK and USA for the third successive year.

"As a result, the large order book of £40.5 billion continues to provide good multi-year visibility across many of our businesses.

“Looking ahead, defence spending remains a high priority in a number of international markets. In the UK, we benefit from long-term contracts, notwithstanding continued pressure on public spending.

"We believe that US budgets are now relatively stable, with some early indications of a modest improvement in 2016. These are competitive times, and we will continue to invest in and develop the technology, skills and market positions needed to drive the business forward.”