BAE sees no short term Brexit hit as interims rise

Weapons maker BAE Systems posted a first-half net profit of £418m against £398m a year ago as revenues rose to £8.7bn from £8.4bn.

The company said the UK's decision to leave the European Union would lead to a period of uncertainty but did not anticipate any material near-term trading impact on business.

Chief executive Ian King said: “Despite economic and political uncertainties, governments in our major markets continue to prioritise national security, with strong demand for our capabilities.”

“In the US, we are seeing encouraging signs of a return to growth in defence budgets and improved prospects for our core franchises. “

“Our business benefits from a large order backlog, with established positions on long-term programmes in the US, UK, Saudi Arabia and Australia. We are well placed to maximise opportunities, deal with the challenges and continue to generate attractive shareholder returns," he said.