Tuesday, September 30, 2008

VT Group: pre-close statement

VT Group: pre-close statement
30 September 2008

Defence and support services company VT Group plc today issues the following pre-close period statement. The Group’s interim results will be announced at 7.00am on Tuesday, 11 November 2008.

The Group continues to trade overall in line with the Board’s expectations with strong performances in the Group’s service businesses offsetting a slower contribution from the shipbuilding Joint Venture, BVT Surface Fleet . Since the AGM we have received our initial dividend from the Joint Venture of £22m.

VT continues to focus on developing its engineering-based support services and the current services order book stands at £4.6 billion. This represents an increase of £600m from the beginning of the year, with organic growth achieved from a number of extensions to existing contracts, as well as new business wins. Since the AGM the following contracts have been won:

In the national security and resilience sector a contract with Firebuy Limited , on behalf of the Department of Communities and Local Government (CLG), to provide capability management for the New Dimension fleet of emergency vehicles and equipment modules. The 16-year programme, with an option for up to four further years, is a primary outsource. Service provision will start from 1 October.

Also in the UK a three-year multi-activity facilities management contract at RAF Cosford ; a four-year contract to train Royal National Lifeboat Institution (RNLI) maintenance technicians; a contract to install new satellite navigation equipment on 14 General Lighthouse Authority (GLA) sites and another to repair and upgrade electronic warfare training communications at RAF Spadeadam (Cumbria) have all been secured in the period.

In the US, a multiple award construction contract has been received from the U.S. Army Engineering and Support Center to carry out repair and renewal work at military installations throughout the country.
In total, these new contracts are valued at up to £200 million.

BVT Surface Fleet has signed a contract worth €150m to support the construction of Fast Attack Craft for the Hellenic Navy with our Partner in Greece.

AirKnight, the Joint Venture partnership between VT and Lockheed Martin, is competing for the UK's SAR-H search and rescue helicopter requirement . The competition for this 30 year multi-billion pound PFI has narrowed to two remaining bidders from an original field of four.

VT Group Chairman Mike Jeffries commented: “The overall trading environment in VT's markets remains robust and continues to offer significant growth opportunities for engineering support services.”

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