PENDLE MP Andrew Stephenson believes Rolls-Royce is 'picking up' after the aero-engine giant's announced its latest results.

The firm, which employs 1,000 workers at two plants in Barnoldswick, saw underlying profit fall by 12 per cent, revenue drop by one per cent and halved its dividend.

Despite this the Stock Market agreed with the Tory backbencher and Rolls Royce shares rose 15 per cent in early trading yesterday.

Warren East, Rolls Royce chief executive, said: “In the context of challenging trading conditions our overall performance for the year was in line with the expectations we set out in July 2015.

"It was a year of considerable change for Rolls-Royce in our management, in some market conditions and in our near-term outlook.

"At the same time, there were some important constants, the underlying growth of our long-term markets, the quality of our mission critical technology and services, and strength of customer demand for these, which are reflected in our growing order book.

"Overall, we have made a good start to the journey that will return the company to profitable growth.”

The company spokesman said although cutbacks in top management were continuing, there were no pans to reduce the workforce further at the two Barnoldswick plants at Bankfield and Ghyll Brow where wide chord fan blades for civil large aero-engines are manufactured.

In the last year Rolls Royce's Civil Aerospace business delivered more than 300 large engines and have signed deals for almost 500 new ones.

In July last year the company reported a 32 per cent drop in profits in in August announced more than 100 jobs losses at Barnoldswick.

The company, which has issued a string of profit warnings in recent years, made £1.35billion in 2015.

Mr Stephenson, vice-chairman of the all-party Parliamentary Aerospace Group, said: "I think Rolls Royce is now starting to pick up.

"I have been encouraged by recent discussions with management and the UNITE union at Barnoldswick about the future of the plant.

"It is good news that no more redundancies are planned after the two plants lost more than 200 jobs in recent restructuring.

"There are some good new orders and business is starting to pick up for this important East Lancashire company after some difficult times recently."

Rolls-Royce employs more than 21,000 people in the UK, with more than 12,000 employed at its Derby aerospace engines and Barrow submarines divisions, and over 3,000 in Bristol.

Last year, the company announced 3,600 job cuts and warned that some of its 2,000 senior managers would depart.