Technology consultant VEGA, a recent Growth Company Investor recommendation at 186.5p, has romped home with strong half-time figures to the end of October, scoring bumper sales growth in each region and market sector.

Now firmly focused on the aerospace, defence and government markets, VEGA reported a 20% pre-tax profits jump to £2m on sales up 25% to £30.6m. Organic growth – stripping out recent acquisition Anite – was a very healthy 20% and operating margins held at 7% despite VEGA investing £200,000 to expand in key locations such as the UK, Germany, Holland and France.

Chief executive Phil Cartmell flagged up appetising growth in the aerospace market, where VEGA supports satellite programmes and develops training systems for large aerospace system manufacturers, as well as the defence consulting business, where VEGA works for the UK intelligence community, contracted through the Ministry of Defence. Looking ahead, VEGA is looking to make ‘smart’ acquisitions to boost the consulting business and broaden its business geographically.

Cartmell says VEGA kick-started the second half with strong orders and is confident of hitting full year forecasts. Estimates in the market suggest profits of £4.6m and earnings of 15.2p, placing the shares on a forward multiple of 13 times. VEGA has ticked higher from our recommendation price and we remain convinced of its star-studded appeal. Strong buy.

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