Vega Group Plc is increasingly looking towards the sky for new business, which it hopes will propel profits in a similar direction. The Harpenden, Hertfordshire company reported a first half boosted by significant progress in its satellite business and its equipment emulation technology, with one of its aircraft trainers in use with the Royal Air Force and with an order for another one from the Royal Navy. Interim pre-tax profits were up 25% to ú1.3m on turnover that rose 27% to ú7.3m. The Royal Navy contract is said to be worth ú1m for a Computerised Aircraft Training System, while the Royal Air Force has just put its Avionics Systems Trainer from Vega into operation. This enables numerous technicians to be trained simultaneously on high-performance personal computers rather than fiddle around with real, very expensive aircraft. A contract worth ú1.4m was also won in the half to provide operations and systems support for the launch of an Envisat spacecraft from the European Space Agency. The UK Civil Aviation Authority awarded Vega a contract for a runway simulation system to study the capacities of airports under various loads and weather conditions. The company was also involved in the preparation and post launch control for the Infrared Space Observatory, which was launched last November. A number of contracts have also been extended in the half, including the Space Observatory mission, until June 1997. The Department of the Environment extended a consultancy until September next year and the Royal Air Force opted for courseware enhancements to the Avionics Systems Trainer. Away from home, the German subsidiary is said by the company to have been doing particularly well. The interim dividend is up 25% to 1.75 pence. Chairman John Rigg, who steps down at the end of next month, said in true space explorer fashion that he is looking forward to the second half and beyond with confidence.
