VT’s services outpace shipbuilding

The update said the group continued to trade in line with expectations with strong performances in the service businesses offsetting a slower contribution from the shipbuilding joint venture, BVT Surface Fleet. VT said it continued to focus on developing its engineering-based support services and had a current order book standing at £4.6 billion. This represented an increase of £600 million from the beginning of the year, with organic growth achieved from a number of extensions to existing contracts, as well as new business wins. Among recent contracts were a 16 year programme on behalf of the Department of Communities and Local Government to provide capability management for emergency vehicles and equipment; a three-year facilities management contract at RAF Cosford; a four-year contract to train Lifeboat maintenance technicians; a contract to install new satellite navigation equipment on 14 Lighthouse Authority sites and another to repair and upgrade electronic warfare training communications at RAF Spadeadam (Cumbria). In the US, a multiple award construction contract had been received from the US Army Engineering and Support Centre to carry out repair and renewal work at military installations throughout the country. In total, these new contracts were valued at up to £200 million. BVT Surface Fleet had signed a contract worth EURO 150 million to support the construction of Fast Attack Craft for the Greek Navy. AirKnight, the joint venture partnership between VT and Lockheed Martin, is competing for the UK's 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 said: "The overall trading environment in VT's markets remains robust and continues to offer significant growth opportunities for engineering support services."