Weaponry and aircraft manufacturer BAE Systems said it expects to increase shareholder earnings by 5% to 10% this year amid growing government spending on defence budgets.

The company, which employs 1,350 people in Marconi Way, Rochester, increased sales by £1.1 billion to £19 billion in 2016 and will pay a total dividend of 21.3p a share, up 2% on 2015.

It grew its underlying profitability by 7% last year, giving it earnings before interest, taxes and other charges of £1.9 billion.

The preliminary announcement of its annual results comes a day after it revealed chief executive Ian King will retire in June after nearly nine years.

Chief operating officer Charles Woodburn will be appointed to the role on July 1.

Mr King said: “2016 was a good year for BAE Systems.

“Our strategy is well defined; we have a large order backlog, long-term programme positions, strong programme execution and a well-balanced portfolio.

“With an improved outlook for defence budgets in a number of our markets, we are well placed to continue to generate attractive returns for shareholders.”

In January, BAE confirmed it will lose up to 60 jobs at its Rochester site. The cuts will include executive and non-executive workers.

However, it will train 10 more apprentices at the Medway building as part of plans to recruit more than 500 young people across the country, with the deadline for applications closing on Tuesday, February 28.