THE aerospace and defence group that owns a major employer in Hampshire has recorded annual pre-tax profits of £350m.

Smiths, the parent of Hamble Aerostructures, said the figure is £1m up on the previous financial year.

Aerostructures, which employs 1,000 people, is a key player in the south's £7 billion civilian and defence industry, with customers including aircraft manufacturer Boeing, the RAF and defence giant BAE Systems.

Staff at the Aerostructure's Hamble factory assemble sections of aircraft and produce fibreglass mouldings.

All of Smith's four divisions - aerospace, detection, medical and speciality engineering - boosted market positions.

Smiths said that while it was still early in the current financial year, its business environment appeared more positive than it had been for some years.

The group's aerospace division increased sales by seven per cent and operating profits by two per cent in constant currency terms, with increased Boeing 737 production benefiting the group, but no pick-up seen in the commercial after-sales market.