AEROSPACE and defence group Meggitt is on track for a strong annual performance after posting record half-yearly profits.

The group, which employs hundreds of people in Hampshire, said demand for spare parts and repairs in the civil market was steadily improving, while military equipment sales remained strong.

It also said that a nine per cent improvement in its order book and a recent company-transforming acquisition left it well placed for an "exciting future".

Meggitt employs some 5,200 staff, including 300 at two sites in Segensworth and Titchfield, near Fareham, and makes equipment for aircraft including the US Air Force's C-5 transport plane.

It is also developing defence systems for the Royal Air Force's Tornado fighter bomber.

Meggitt, which has its HQ at Wimborne, Dorset, announced in July it was acquiring the design and manufacturing arm of rival Dunlop Standard for £408m.

Pre-tax profits before goodwill and exceptionals rose by five per cent to £37.5m in the six months to June 30.

The aerospace division saw a seven per cent hike in operating profits to £35.3m, including a good performance from four acquisitions made in 2003, which were all performing in line with or ahead of expectations.

However, operating profits at the electronics arm fell by seven per cent to £6.2m.

The workers near Fareham concentrate on cockpit instrumentation, flight data recorders, engine monitoring and life support oxygen systems.

Meggitt said its engine vibration monitoring system, which provides early warning of deterioration, had been certified for use on all Boeing 737 aircraft.

It has 1,200 customers worldwide including regional, business and commercial aircraft and helicopter manufacturers and operators, government organisations and engine manufacturers.