Sponsored by
Get set for bonanza of privatisation says buoyant VT Group
The government's dire financial straits are the chance for a privatisation bonanza, according to the VT Group.
The Hampshire-based company released its half-year results yesterday, the first since the firm ditched its historic connection to shipbuilding after selling its marine wing to BAE Systems last month.
Profits have jumped dramatically, with profit before tax of 33m in the last six months, compared to 27m for the same period in 2008.
Chief executive Paul Lester said he expected this to grow even further as the government was forced to outsource chunks of the MoD. He told The News: 'We can see there'll be more outsourcing to make government more efficient and we're in a good position to get our fair share of that.
'Some people think it's the wrong thing to do, but as a taxpayer you'd rather government be efficient. If you ask a person on the street, "do you think government is overmanned and has too much bureaucracy?" I've never heard any other answer but "yes".'
Asked how a private firm would run procurement better than the public sector, Mr Lester said: 'We bring in the kind of commercial aspect that we deal with on a daily basis. We'd do it with fewer people, and more efficiently.
'I think it will have to happen because they've got to cut their costs and outsourcing is the best tool to do that.'
At the moment VT group runs the MoD's basic flight training to all branches of the military, provides its bulldozers and construction vehicles, and looks after its non-military vehicles, among many other contracts.
Among the deals the firm is eyeing with interest is any work on the controversial plan to sell off the Royal Navy's Royal Fleet Auxiliary, which handles supplies and logistics for the fleet.
Although VT no longer builds ships, it may look at handling the management and procurement sides of the business if and when it comes up for grabs.
ROOTS DATE BACK TO 1870s
The VT Group has Portsmouth roots dating back to the 1870s, when Herbert Vosper, began building ships on the Camber.
Today it no longer has a shipbuilding wing, but concentrates on providing services and support to the fire brigade, police and military.
It employs around 1,000 in the Portsmouth area, including 200 at the headquarters of VT Flagship in Cosham, and around 80 on HMS Excellence where it runs a school training firefighters, soldiers and sailors to escape from the cramped bowels of a ship.
The company, headquartered in Hedge End, recently reorganised its complicated series of internal departments into just three branches: military services, government services and a wing based in the USA.
The move made around 300 staff redundant in just the last 12 months but at the same time the company created around 900 jobs, scattered all around the UK.
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Portsmouth
Friday 10 February 2012
Today
Light snow
Temperature: -4 C to 3 C
Wind Speed: 17 mph
Wind direction: South east
Tomorrow
Sunny
Temperature: -5 C to 3 C
Wind Speed: 8 mph
Wind direction: East
