Morson Group reported pre-tax profit of £6.12m for 2006, up from £748,000 in 2005.

Turnover rose 22.9% to £326.8m.

The shares rose in early trade and are at their highest since the company floated  a year ago.

Gerry Mason, non-executive chairman, said: “The Group's aerospace and defence division is anticipated to continue to benefit from strong demand arising from BAE Systems in respect of various projects. The Board also believes that demand in its rail services sector will remain strong as a result of continued upgrade and maintenance projects on both underground and national rail networks.”