NORTH-East defence and transport electronics company, Joyce Loebl, is set to concentrate on its core business areas after revealing a 23 per cent growth over the last 12 months.

The firm will reshape its business structure sharpening its product focus after identifying key areas for expansion in both its civilian and military operations.

The Team Valley-based company unveiled turnover in the 12 months to July 31 was £9.05m - up from £7.34m for the previous 12-month period.

On the civilian side, the major focus falls on further developing rail vehicle CCTV security and passenger information systems, and vehicle-mounted data systems for use by the emergency services.

Work on the company's £5m contract to supply thousands of train-mounted electronic displays to Belgian company Bombardier for Virgin's new 78-strong CrossCountry fleet is well underway as revealed earlier this month in The Northern Echo.

On the defence side, the company sees the biggest growth potential in electronic warfare products, including airborne counter measures dispensing systems - so-called "chaff", designed to confuse enemy radar, as well as electrical systems for fighting vehicles, and radio communications.

The company has just tabled a £40m bid to supply the UK Land Forces with radio equipment that could see Joyce-Loebl providing every frontline British soldier with a personal radio for short-range communications.

The company's products for the rail industry will be on display at InnoTrans 2000 International Railway Technology Fair in Berlin this month, and Joyce-Loebly is also signalling the arrival of a number of new products in both sectors, which it plans to unveil over the coming months.

Chief executive Geoff Carswell said: "We are looking to grow both sides of the business and have decided that the best way to do this is to effectively create two divisions.

"While the two parts of the company will focus on their own areas, we will constantly be looking for ways we can continue to successfully apply military experience to the civilian sector while also gaining an edge in military circles by applying commercial methods.

"We have commenced a programme of change within the company that we hope will lead to world-class excellence in our two chosen market places."

The 115-stroing workforce is also being reorganised at management level with both of its divisions continuing to share technical support, administration and financial services. Each accounts for about half the company's £10 million turnover.

Trevor Grugan is the new director of defence systems, while Mike Wade becomes director of transport systems. Don Robinson is the new Technical Director, with overall authority for engineering excellence across both divisions.

The company is 75 per cent owned by 3i, the venture capital institution, and 25 per cent owned by its management.

It employs about 115 people at Team Valley, Gateshead.