Rolls Royce has reported an increase in profit before tax of 28 per cent in the half year to June 30th.

The group – which dominates the aviation engine market in Europe – earned £595 million for the period, or 23.9 pence per share, up from £465 million a year earlier.

As a result, the company declared a first half payment to shareholders of 6.9 pence per share, up eight per cent on last year.

“Performance in the first half of the year was strong with our order book and underlying profit showing solid growth, enabling an increased payment to shareholders,” said Rolls Royce chief executive John Rishton.

“This demonstrates the resilience of our strategy that is based on a diverse portfolio and access to global markets.”

Rishton took over from the outgoing Sir John Rose in April this year.

Rolls Royce also recently completed of the acquisition, with Daimler, of the German diesel engines group Tognum, while also signing a deal to exclusively power the Airbus A350-1000.

The order book at Rolls Royce grew to a record £61.4 billion, up £1.9 billion from the same time last year, with the company expecting positive full year results.

“For the full year, we continue to expect good growth in underlying profit and, excluding the effect of the Tognum investment, a modest cash inflow,” concluded Rishton.