28 January 2010
Support services company VT Group (VT) issues the following Interim Management Statement, covering the Group's performance for the period since 30 September 2009.
We have continued to perform well in the second half of our financial year and we are making good progress towards meeting the Board’s expected performance for the full year.
Business Performance
VT’s order book remains at more than £4 billion and operational performance within our business streams has been good.
Amongst a number of contract wins, we have been named preferred bidder by the Highways Agency (HA), an executive agency of the Department for Transport, for the supply, maintenance and management of a fleet of more than 200 patrol vehicles used to support the motorways and trunk roads throughout England with a planned contract award date of 5th February 2010. This is valued at £25 million over four years. It will be our first large project with the HA and reflects an important part of the Group’s strategy to broaden our customer base within Government Departments.
Financial Position
The disposal of our interest in the BVT joint venture was completed in October 2009. The cash proceeds received have further strengthened our balance sheet. At 31 December 2009, the group net cash position was £92m (September 2009: net debt £191.3m).
Mouchel
In late 2009, we made two approaches to Mouchel Group plc (Mouchel), with a view to acquiring the business. The Board of VT believes that a combination of VT and Mouchel would represent a strategically compelling proposition. The enlarged group would continue to have a strong focus on the public sector and its increased scale and enhanced capabilities would provide greater access to larger contract opportunities. The increased customer base and wider range of services would confirm the enlarged group as a leading provider of services to both central and local government agencies and to regulated industries. To date, Mouchel has refused to enter into any form of discussions.
Outlook
VT Group Chief Executive Paul Lester commented: “Our business has shown good growth and we remain on track to deliver a full year performance in line with the boards expectations.”