Companies: SCO   

Former Tory defence minister and aviation specialist Lord Trefgarne is walking with a new spring in his step following a maiden half-year profit from SCOTTY Group, the AIM-quoted video telecommunications specialist he chairs. Trefgarne, who won the Royal Aero Club Bronze Medal for flying from England to Australia and back in a light aircraft 45 years ago, claims the conversion of £379,000 losses into a £304,000 interim pre-tax profit ‘vindicates’ the company’s recent change of direction.

This involved selling SCOTTY’s ‘tele-health’ operations and focusing on the government, military and aerospace markets. The company won a £2.5 million contract with Diamond Aircraft Industries for the Venezuelan government and is now involved in a £10 million upgrade programme for the Eurocopter CH53.

Trefgarne reports that ‘growing momentum’ is now being generated by the company’s specialised satellite communication systems. He argues that the present concern with national security and border control by governments around the world augurs well for SCOTTY.

Shareholders, who have seen the value of their holdings fall from a 15.75p a share peak three years ago to below 2p today, can only hope he is right.