Vosper Thornycroft Holdings Plc News

It appears that the trend toward consolidation and acquisition can be profitable, at least in the case of British shipbuilder Vosper Thornycroft Holdings Plc, which reported to a wire service today that it expects revenue and operating profits to rise by 15-20 percent in the current year, in large part due to acquisitions. The company reportedly expects a rise in pre-tax profit in the year to March 31. U.S.-based Griffin Services Inc. -- a military facilities manager -- was among the company's six acquisitions last year. In addition to financial news, the company said that Paul Lester, the group managing director of construction and infrastructure group Balfour Beatty Plc, would replace veteran Chief Executive Martin Jay on July 1.

UK shipbuilder Vosper Thornycroft Holdings Plc, reporting a three percent rise in annual profits, said it would soon have an order book in excess $1.5 billion. Pre-tax profits before goodwill climbed to $53.7 million for the year to March 31, up from $52.6 million the year before, on turnover of $419.2 million. The results reflected a successful diversification strategy, Vosper said, in reference to its expansion into new markets and reduced dependence on large - but infrequent - warship contracts. Some 67 percent of its turnover is now unrelated to new ship contracts. In addition to building warships for the British Ministry of Defense, Vosper has developed a strong support services division, which now accounts for over 40 percent of group sales.

British shipbuilder Vosper Thornycroft Holdings Plc said on Tuesday profits before tax and goodwill rose 14 percent to $27 million in the six months to September, on turnover up 40 percent to $248.5 million. The company said in a statement its order book was worth a record 1.25 billion pounds ($1.7 billion), which "reflects a significant forward workload". Earnings per share rose eight percent to 36.3 pence ($0.51), out of which a 10.5 pence interim dividend, 7.7 percent higher, will be paid.

Vosper Thornycroft Holdings Plc hopes to move its shipbuilding operations to Portsmouth from Southampton, including its work on the Royal Navy's new destroyer. The company said it had compared the merits of Portsmouth Naval Base and its current shipyard at Woolston, Southampton and that greater space at Portsmouth gave it clear advantages. "Portsmouth is our preferred location, but any move will be subject to successful negotiations with the Ministry of Defense for the lease of land and securing the short-term and long-term shipbuilding contracts that we need," Vosper chief executive Martin Jay said in a statement. Any short-term work would continue to be carried out at Woolston until 2003.

Vosper Thornycroft Holdings Plc said on Tuesday it may have to make up to 650 people redundant due to a shortage of short-term shipbuilding production work. Vosper said the redundancy notices would not take effect until early next year and would only come into force if the company was unable to secure additional work. "We are taking this action as a precautionary measure. No company can keep people employed indefinitely on maintenance and other temporary work without damaging its overall prospects," Chief Executive Martin Jay said in a statement. Vosper's current seven-ship contract for Royal Navy minehunters was now nearing an end, and was insufficient to provide work for the 1,200 workforce before the beginning of a new order, for Type 45 destroyers, announced three months ago.

Vosper Thornycroft Holdings Plc, Britain's second biggest warship builder, reported an increase in pretax profit of 8.2 percent to $25.9 million in the six months ending Nov. 11. The company raised its interim dividend 8.3 percent. Turnover and operating profits are both up 23 percent.

U.K. shipbuilder Vosper Thornycroft Holdings Plc has been selected as preferred bidder by the Ministry of Defense to supply two survey ships in a deal worth up to $150 million. "Our selection as preferred bidder is recognition of our expertise in the U.K. and overseas as a prime contractor," Chief Executive Martin Jay said in a statement. The 90-m vessels are due for delivery in 2002 and Vosper anticipates signing the contract by early summer. The deal was expected to include a 25-year support package for the vessels.