HUNDREDS of workers at one of Hampshire's big-name defence companies have been told: "We're in the money."

Support services and shipbuilder VT Group, which has its headquarters near Southampton, released its half-year results this morning.

They showed that pre-tax profits for the six months ending September 30 were up by 13 per cent to £22.6m.

Turnover was up by 14 per cent to £361.5m and the all-important order book was up by ten per cent to a staggering £2.4 billion.

VT, which relocated its shipyard and 1,000 employees at Woolston in Southampton to a £50m purpose-built one at Portsmouth last year, also saw £422m of new contracts booked in the first six months.

Chief executive Paul Lester, who earns more than £611,000, said: "These results demonstrate VT's consistent performance, providing not only double digit growth but excellent cash generation and visibility of earnings through our £2.4 billion order book. We look forward to the full year with confidence."

The company had two major order book wins: a £100m contract with the New Zealand Defence Force to manage the Royal New Zealand Navy's dockyard at Devonport, Auckland, and one to provide fire training in South Wales.

Operating highlights included VT's "good progress" on building sections of the Royal Navy's Type 45 destroyers at Portsmouth, strong operating cashflow of £22.5m and a contract to provide education support services in Surrey was said to be "fully operational and meeting expectations".

The UK defence business has continued to grow with an 11 per cent increase in turnover.

The report from VT, which employs 70 people at its headquarters at Hedge End, also stated: "Since the year end we joined the AirTanker consortium negotiating with the Ministry of Defence to supply Future Strategic Tanker Aircraft.

"At a value of over £10 billion to the consortium, this is one of the largest defence private finance initiative programmes currently being considered.

"Negotiations continue with the customer and we hope that AirTanker will be announced as preferred bidder before the year end, with financial close 12 to 18 months later.

"VT has agreed to take a ten per cent shareholding in the AirTanker consortium and we also hope to be a significant supplier of support services including facilities integration and management, technical services and general support."