Cobham's defence of the realm

COBHAM, which supplied equipment to Allied troops in the Iraq war, now wants a lucrative share of the growing anti-terrorist market in Britain and the US.

Chief executive Allan Cook revealed the defence contractor is putting ever more money behind efforts to muscle in on a market that industry experts believe will be worth $41bn (£22.6bn) in the US by 2005.

'We are involved in homeland security and are investing more into that area as it continues to grow,' said Cook. 'It's in the area of communication, surveillance and the tracking of assets.'

Cook said Cobham was bound by confidentiality and could not discuss the products governments are using to combat the looming terror threat, but said demand in the UK would undeniably grow.

He added: 'It's all rolled into the defence budget and we saw yesterday the Chancellor will increase expenditure on defence, which is something the industry applauds.'

Its factories worked overtime to keep up with demand for anti-missile flares and precision guidance systems for 'smart' bombs in the Iraq war.

Pre-tax profits in the year to 31 December soared 20% to £137.8m on turnover of £832.6m, up 13%. The order book is now £1.2bn. The total dividend is 28.16p, up 10%.

Banknote maker De La Rue said its contract to supply Iraq is growing. It is delivering 4.5 trillion new dinar (£1.65bn) to the central bank there.