Profits at Southampton shipbuilder Vosper Thornycroft (VT) rose six per cent to more than £18m and the company's order was boosted by 35 per cent during the first six months of this year.

The interim figures released today showed that turnover at the VT group, which also specialises in government support services, was up 34 per cent to £269m.

This comes as VT launches a high profile campaign to win a large share of a multi-billion pound contract to help build the UK's next generation of aircraft carrier.

The group is also set for major operational changes as it begins to run down its long established Southampton shipyard on the River Itchen at Woolston, now identified as a prime waterfront site development, and moves its production facilities to Portsmouth.

Chief executive, Paul Lester said: "We are taking action to make the group more focused by concentrating on our two main businesses - government support services and shipbuilding.

"Our substantial order book of over £2bn gives us a platform from which to expand these businesses.

"We expect to see strong organic growth as a result of the significant contract prospects we have in the pipeline.

"Against this background we have set demanding targets for double-digit growth in profits in each of the next three years.''

The development of the group's new Portsmouth shipbuilding facility is well underway and is progressing on programme and to cost in readiness for the start of the Type 45 production in May 2003.

Transfer of staff from the Woolston yard to Portsmouth has already begun.

Martin Jay, VT's chairman, said: "The business continues to perform in line with our expectations.

"Continued organic growth of our support services business, a long-term future for our shipbuilding business and rationalisation of our marine products business provide a strong platform for the future development of the Group."