Vega Group Plc, the bespoke software and systems engineering company, saw a rise of 35% to UKP1m in its interim pre-tax profits announcement yesterday and is confidently taking the better than average results in its stride. Turnover for the six months to October 31 was up 26% to UKP5.7m. Strengthening its expansion into the defence market, Vega last month won the Royal Air Force’s Trade Group 3 contract worth UKP2m over 18 months. Starting in January it will work to develop a software system to train Royal Air Force maintenance technicians. The Harpenden, Hertfordshire-based company won a similar contract for Sea Harrier F/A2 maintenance software back in March and said this work is on time and within budget with first delivery due in March or April next year. The order book for smaller bread and butter revenues also remains strong with about six substantial so-called ‘time and materials’ contracts providing income from hourly rates rather than fixed value contracts. The company does not feel that cuts in defence budgets will adversely affect its business interests in the defence sector because the future shift in emphasis from hardware to software means customers will save money by purchasing software services and still receive the same service. Vega has a strong cash position with UKP1.5m in the bank against UKP782,000 last time. Chairman John Rigg says the company will always look at the possibility of spending this money on acquisitions, but it has never been seriously tempted and would rather not buy into other people’s problems. Vega has interests in Europe with a wholly-owned subsidiary in Germany and presence in the Benelux region. It estimates that near half total turnover comes from overseas.
