The group said it was trading in line with its expectations, and it still expected to deliver a 5-10 percent rise in underlying earnings per share this year.

"Discussions with current and prospective operators of Typhoon aircraft continue to support group's expectations for additional contract awards," it said on Thursday.

It also said talks between itself, the British government and Saudi Arabian government were progressing to define the scope and terms of the next five-year defence co-operation programme between the countries, a significant driver of profit for the group.

(Reporting by Paul Sandle; editing by Kate Holton)