DEFENCE giant manufacturer BAE Systems said it had returned to profit during the first half, but warned of "challenging trading" ahead as governments axe spending.

BAE Systems, which has a plant at Brough, net profits of £618m in the six months to June 30, compared with a loss of £82m last year, when it reported huge impairment charges on its acquisition of US company Armor Holdings

Turnover at the company was was up 9.3% to £10.6bn from £9.7bn last time.

The company said in a trad......for the full story register now for free or login below...