SUPPORT services work today helped Hampshire-based VT Group overcome the impact on half-year profits of the company's switch to a new £50m shipyard.

The group, which employs more than 1,000 in Southampton, Hedge End and Portsmouth, posted profits before one-off items of £20m in the six months to September 30, an increase of 11 per cent.

The performance was boosted by the support services arm, which lifted turnover 17 per cent to £235m and operating profits by 30 per cent to £18.4m.

Support services account for about three-quarters of the company's business, serving customers in defence, communications and education.

In shipbuilding, turnover was 19 per cent higher at £81.3m because of higher workloads in programmes for the Greek navy and Royal Navy Type 45 destroyers.

Despite the sales progress, operating profits fell to £3m from £4.1m as the final programmes at Woolston experienced lower profitability ahead of the site's closure.

A new shipbuilding facility at Portsmouth was opened in September, with VT expecting to complete the transition from Woolston by the end of this year.

One of its major projects is the building of the bow section, funnel and masts for the first six Type 45 destroyers - due to be completed in 2007.

The board declared an interim dividend of 2.57p (2002 : 2.4p) per ordinary share, an increase of seven per cent.