VDM Group predicts profit lift

VDM Group has announced it expects an increased operating profit this financial year of $14 to $16 million.

This is broadly in line with the consulting, construction, resource and infrastructure company's consensus forecast of $14 million.

In a statement VDM announced it had renegotiated its banking facilities which will mature on 30 November 2012.

"The Group's net debt position has continued to reduce on the back of strong operating cash flows," the statement said.

VDM also announced that the company is in the process of settling all remaining earn-outs relating to business acquisition during previous financial years.

"The settlement will result in the cancellation of approximately 2 million shares and the payment of deferred consideration. The overall impact on goodwill is expected to be immaterial," VDM's statement said.

VDM's shares were up 11 per cent to 36 cents at 11am.