MercoPress. South Atlantic News Agency

VT Group sees H1 in line with expectations, confident outlook for FY

In a statement ahead of the Nov 14 release of results for the first half, the group said its order book currently stands at 3.5 bln stg.

Turning to divisional performances, the group said VT Communications has achieved strong revenue growth in the first half and has recently been awarded an initial 5 year contract with a potential value of 20 mln stg million, commencing in January 2007, to broadcast analogue and digital shortwave programmes for Deutsche Welle, the German public broadcaster.

VT Defence has also made good progress with the integration of the former Lex vehicle support businesses, acquired in April, and their performance has been in line with expectations.

Following the recent announcement by the Secretary of State for Defence, Des Browne, of a review into the UK Naval Bases, the group is working closely with the UK Ministry of Defence to evaluate a number of potential outcomes.

VT Education and Skills expects to conclude a contract with the London Borough of Greenwich for its Building Schools for the Future (BSF) programme in the next few months. Operating profits in this division are currently lower year-on-year due principally to changes in Learning and Skills Council funding which have impacted on VT Training, as well as higher bid costs and higher than expected acquisition integration costs.

VT Services Inc has further expanded its regional coverage by securing a ten year contract, worth up to 68 mln usd, to support US Coast Guard operations based in Kodiak Island, Alaska.

And VT Shipbuilding continues to make good progress on production of the Royal Navy's Type 45 destroyers. The Royal Navy Offshore Patrol Vessel (Helicopter), HMS Clyde, is set to be deployed to the Falkland Islands next Spring. Negotiations with the Sultanate of Oman for the construction of three Ocean Patrol Vessels continue to progress, with contract completion expected before the end of 2006, the group added (Forbes)