DEFENCE and rail electronics specialist Joyce Loebl has landed three defence contracts that will generate millions of pounds-worth of business for the Gateshead company.

The company has also taken a record number of orders for the second year in succession.

The news coincides with parent group Screen plc's improved trading figures for 2003.

New Joyce Loebl (JL) contracts include a £1m a year contract to supply the Ministry of Defence with commercial radio equipment, a £750,000 extension to a contract to refurbish missile warning systems for the RAF and Royal Navy, and a £1.1m contract to supply 66 engine management systems to Alvis Vickers, in Newcastle, to control the engines in a range of tanks.

The contracts have helped raise the JL order book to a record £15m, an improvement on the 2002 figure of £10m, itself a record.

Other contracts include a £2.7m deal for the supply of on-train security systems for Portuguese railways and £1.5m RAF contract to equip early-warning aircraft with computer displays.

The Screen Group, which took over JL in 2001 yesterday announced a turnover of £21.3m, gross profit of £8.7m and pre-tax losses down from £14m to £2m.

Screen has two divisions - Petards and JL - and reduced costs by more than £2m last year.

Group executive chairman Tim Wightman said: "The improvements now being introduced will lead to a leaner, more focused and more commercial organisation."

He said improvements being made to the business were not expected to create financial benefits until later this year, when he expected the group to be on a "sounder footing".

He acknowledged that Screen had made progress, but admitted it had fallen short of operating and financial objectives.

Dr Geoff Carswell, chief executive of JL, said: "The hard work of the staff at JL has resulted in an increased order intake and order book, which provides a firm foundation for continued growth in 2004 and beyond."