Shares digital

Southampton-based ships and support services firm VT Group (VTG) is on a shortlist of four bidders for a £4 billion Ministry of Defence deal to source and maintain some 90,000 Army vehicles including jeeps, vans, trucks and armoured cars over nearly 20 years.

The contract will not be awarded until 2012 but being on the shortlist is another feather in VT’s cap illustrating its fine record pitching for long term support service contracts. The much anticipated Military Flying Training System contract should finally be awarded in April and VT, with partner Lockheed, is expected to win the £3 billion deal spread over 20 years.

VT is also tipped to win the FSTS air tanker support contract worth £1.5 billion. Panmure Gordon reckons the VT order book could be £5 billion by the end of this year but the company prefers a more conservative £4 billion tally ‘if all goes well’.

Shares says: VT is not only winning defence contracts but is also doing well in education and waste management but it might take a while for the shares to regain their recent £7 peak.

by: Timon Day