Defence giant BAE Systems is continuing to to perform well despite ongoing investigations into its business dealings.
BAE yesterday posted half-year results ahead of expectations, with underlying profits up £100 million at £700 million in the six months to June 30.
The company said it had successfully targeted the higher growth sectors of the US defence market, while the "high tempo" of military operations - including those in Iraq and Afghanistan - boosted its land systems arm, which has operations in Wolverhampton and Telford.
But the company added: "Corruption allegations continue to be made against the group."
As well as a long-running investigation by the UK's Serious Fraud Office - now abandoned - into business in a number of markets, the company was told in June by the US Department of Justice that it had started a formal probe relating to the group's compliance with anti-corruption laws.
"Notwithstanding these investigations, BAE Systems is performing well and is committed to main-taining its focus on continued value generation and its drive to embed a high performance culture."
The group recently asked the UK's former lord chief justice, Lord Woolf, to chair an ethics committee to review the company's policies and processes.
The move followed allegations about payments to a Saudi prince in connection with an export deal, which the firm has denied.
The group recently extended its presence in the US defence sector with the £2.3 billion acquisition of Armor Holdings.
Armor, which is based in Jacksonville, Florida, is a major manufacturer of military vehicles and body armour for the military and security forces.
The deal represented a significant step in BAE's strategy to expand and develop its businesses in the US, as it moves to increase its status as a leading global defence and aerospace company.
In its half-year results, BAE said its order book stood at £31.7 billion at the end of the June, compared with £30.2 billion a year earlier.
The company's US-based land and armaments division, which has 11,700 employees, notched up underlying earnings of £1.2 billion, up from £892 million a year earlier.
Further US Army contracts were secured for the refurbishment and upgrade of recovery and fighting vehicles totalling £241 million in the first half.
BAE said the British Army's operations in Afghanistan and Iraq resulted in numerous urgent operational requirement orders for Warrior vehicles and small and medium calibre ammunition packages.
The company's programmes and support division, which is based in the UK and employs 28,500 people, achieved earnings of £231 million, up from £153 million a year earlier.
The division has now delivered 46 Typhoon aircraft to the RAF and 77 across the other European partner nations. It is also in talks with Saudi Arabia about a potential order for Eurofighter Typhoon jets.
Arms sales to Saudi Arabia represent the biggest export deals in British history and the latest, involving the sale of 72 Eurofighter Typhoon jets, is worth an estimated £10 billion, including weapons and support.
Jeremy Batstone, of Charles Stanley stockbrokers, described the results as "superb" and noted that BAE achieved the figure despite much of its business being exposed to the weak US dollar.
"Interims have massively exceeded market expectations," Numis Securities analyst Clive Forestier-Walker said in a note which rated BAE a "buy" with a target price of 580p.
"On our new tentative forecast the shares are trading at 12.5 times 2008, which is at a nine per cent discount to the sector with well above average growth prospects," he added - noting this priced BAE at a 20 per cent discount to US defence companies.
BAE proposed a dividend of 5p versus 4.4p in the same period a year earlier.