A DEFENCE giant which employs thousands of people in south Cumbria has seen its pre-tax profits rise.

BAE Systems has released its results for 2016 and anticipates further growth in the years to come.

The firm, which employs thousands of people in Barrow, said that it had made a pretax profit of £1.15bn in 2016, up from £1.09bn in 2015.

Sales across the group reached £19bn, £1.1bn more than the previous year, while revenue also increased to £17.79bn from £16.79bn the year before.

The business expects 2017 to continue in the same fashion as defence budgets globally look to be improving.

Ian King, chief executive of BAE Systems, said: "2016 was a good year for BAE Systems.

“Our strategy is well defined; we have a large order backlog, long-term programme positions, strong programme execution and a well-balanced portfolio.

“With an improved outlook for defence budgets in a number of our markets, we are well placed to continue to generate attractive returns for shareholders."

The results come just one day after Mr King announced his retirement, due to take place on June 30 this year.

The board also confirmed that Charles Woodburn, chief operating officer, would take his place on July 1.

Mr King has been the firm’s chief executive since September 2008 and has worked in the defence sector for more than 40 years.

Sir Roger Carr, chairman of BAE Systems, said: "After a distinguished career, Ian will retire leaving a legacy of disciplined performance, ethical behaviour, a burgeoning order book, a track record of delivering shareholder value and a strong leadership team.

“During his tenure as chief executive, Ian has built a world-class defence engineering and technology business, providing vital capabilities to our customers and contributing to the security and economic prosperity of the nations in which we operate.

He added: “Since his appointment last year, Charles has made an important contribution to the company, bringing impeccable engineering credentials, broad international experience and fresh perspectives to build on our existing strengths.

“In his new role, he will build on an enviable inheritance to create an exciting future, where we will continue to be performance-driven and values-led."