The boss of defence giant BAE Systems has hailed a ‘year of significant progress’ as the company showed strong financials and announced a new deal for its pensioners.

The business saw revenue hit £18.3 billion, an increase of 7 per cent in 2019, while its operating profit grew to nearly £1.9 billion, up 18 per cent year on year.

Apart from in aerospace – BAE System's largest business unit which accounted for around 40 per cent of profit – operating profit grew across all its divisions.

BAE Systems Submarines in Barrow – Cumbria’s second largest employer – falls under the company’s maritime division.

Around 10,000 people work for BAE Systems Submarines, which is manufacturing the Astute and Dreadnought class vessels, while its extensive supply chain includes around 100 Cumbrian companies.

Progress on the construction of the first Dreadnought class submarine at the Barrow site’s huge £100 million state-of-the-art Central Yard Complex was hailed among the major achievements for the company during the year.

BAE Systems said it had received £1.4bn of funding during the year to deliver Britain's future nuclear deterrent, which will eventually replace the Vanguard class.

The company said sales in the maritime division were expected to be ‘stable’ during the year.

Chief executive of BAE Systems Charles Woodburn said: “2019 has been a year of significant progress for BAE Systems.

“We delivered a good set of financial results in line with guidance, growing sales and earnings, with improved operational performance and increased investment in the business to underpin our growth outlook.”

The company also announced that it has reached a new deal with its pension trustees to help plug a £1.9bn hole in its pension pot.

The business will now make a one-off payment of £1bn into the fund ‘in the coming months’.

This will come alongside a £240m payment over the course of the year ending March 2020, and a further £250m over the following 12 months.

“Strategically we took a number of actions to strengthen the portfolio, and the pensions agreement announced today is good for all stakeholders,” Mr Woodburn said.

“These will help to accelerate our strategy and further our growth outlook.

“We have a large order backlog and remain focused on strong programme performance to deliver a sustainable business model with enhanced financial performance.”

Shares were up 2.2 per cent at 654p on Thursday morning.