BAE Systems has increased its dividend after posting better-than-expected results in tough economic times.

The global civilian and military avionics group that specialises in helmet-mounted displays (HMD) for jets and helicopters at its Marconi Way, Rochester, plant, has reported annual sales of £19.2bn.

Net debt stood at £1.4bn while the company announced a share dividend of 18.8p. The company has distributed £2.2bn to shareholders in the past two years.

BAE said its strategy was to support customers and drive shareholder value by growing international business, developing its operations in cyber, intelligence, security and electronics in both civilian and defence applications.

It said it was well positioned in its main operations - the Typhoon F-35 jet aircraft, submarines, naval ships and armoured vehicles.

The firm said it would continue to "drive efficiencies£, but did not say whether or not that might involve job losses.

Chief executive Ian King said: "BAE Systems has delivered a robust underlying performance in a challenging business environment.

"This has enabled the board to increase the dividend by 7.4%, in addition to the £2.2bn returned to shareholders in the past two years.

"The group's strategy has established a resilient platform for the future as we grow our international, cyber and electronics businesses and drive value from our positions in the services sector and on key programmes."