SHIPBUILDER VT Group last night attributed an 11 per cent rise in annual profits to a growth in its support services operation.

The company - formerly known as Vosper Thornycroft - said the division more than compensated for a transitional year at its shipbuilding business.

VT said a strong order book, which was up 20 per cent on the previous year, made it confident of further growth.

Pre-tax profits before exceptionals and goodwill were £46.2m in the year to March 31 on turnover of £671m - up from £565m last time.

The group also said it was clear that consolidation of UK warship production was likely.

"Following BAE Systems' recent announcement on its shipbuilding activities, VT Group will take a considered view as to the options available, particularly having regard to the large stream of support contracts that follow the commissioning of ships," it said.

Analyst Guy Hewett, at Investec Securities, said this did not rule out a move by VT for BAE's shipbuilding assets.

Although the results were slightly ahead of expectations, Mr Hewett expected uncertainty over UK shipbuilding to restrain shares in the short term.