AERO engine giant Rolls-Royce today bucked the gloom among British manufacturers by unveiling record orders and its biggest ever profits.

The firm, which employs 1,300 at its Barnoldswick factory, saw its order book beat the £10 billion mark last year and profits jump 18 per cent to £325 million.

Civilian jet orders reached a record £5 billion, with one-in-three civil aircraft ordered over the year being powered by Rolls-Royce engines for which its East Lancashire site manufactures components including fan blades.

Today's news comes on the back of strong financial results from British Aerospace.

Both Rolls-Royce and BAe are the key players in the aerospace industry on which tens of thousands of Lancashire jobs depend.

As well as being East Lancashire's biggest employers, they pump tens of millons of pounds into the local economy by placing work with firms in the region. Rolls-Royce predicted the next 20 years to bring passenger engine sales worth a further £218 billion and £93.75 billion of parts.

The figures came as the group reported an 18 per cent jump in profits and pledged to continue growing earnings at double-digit percentage levels into the future.

Pre-tax profits in the year to December 31 were £325 million, compared with £276 million the previous year.

Turnover was £4.5 billion compared with £4.35 billion the previous year.

Analysts had pencilled in pre-tax profit expectations at between £309 million and £328 million.

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