Barrow submarine yard owner BAE Systems can look forward to a "sound" future after it reported a rise in profits and revenue.

The group reported pretax profits of £714m,up from £528m in 2016.

Sales increased to £9.57bn from £8.71bn and reported revenue rose to £9.01bn from £8.23bn.

These results cover the six months to June 30 and the weak pound against a strong dollar has helped BAE as it makes sales in the United States more valuable when translated into sterling earnings.

It said it would take a charge in the second half for overhauling its cyber and intelligence arm, where revenues are "softening", but it expects this hit to be offset by stronger performances elsewhere in the group, helping it meet full-year guidance.

In a statement to the London Stock Exchange the company said it would continue to keep a tight rein on costs but is hopeful of higher spending worldwide. It also said it expected defence and security to "remain a priority" in the UK despite the minority government result of the General Election.

"Negotiations on the terms of the UK's exit from the EU will provide greater clarity as to the economic outlook in the medium term," the statement added.

"In the maritime domain, there remains pressure on the Navy's near-term budgets. Submarine activity is increasing with the Astute and Dreadnought class submarines now both in production and major redevelopment of the Barrow, UK, site to deliver the Dreadnought programme under way. The first three Astute Class submarines are in operational service with the Royal Navy and the fourth, Audacious, was launched in April, with the remaining three in build."

Chief executive Charles Woodburn said: "BAE Systems' performance in the first half was consistent with our expectations and guidance for the year. We have a sound platform for medium-term growth underpinned by a clear and consistent strategy.

"Strong programme execution, technology and enhanced competitive positions will be key in driving the business forward, and we will continue to focus on efficiency and meeting our customers' affordability challenges.

"With the expected improvement in the defence budget outlook in a number of our markets, the group is well placed to continue to generate good returns for shareholders."