The aero-engineering group Rolls-Royce - given a boost this week by securing the contract to build engines for British Airways' new fleet of Airbus planes - yesterday reported a sharp climb in profits.

The group, which sells 80 per cent of its products overseas, shrugged off the effects of the strong pound which have consistently dogged British manufacturing industry.

Profits before tax rose from £116 million sterling a year to £135 million in the half year to June 30th, on turnover steady at just over £2 billion.