War and security threat lift Inmarsat

INMARSAT, the international satellite communications business that British venture capitalists snatched from under the noses of American bidders - led by George Soros - with an £860m bid late last year, had a very good war.

But it also said it would cut jobs to save costs. Its headcount dropped by 60 to 536 last year. Announcing a 9% rise in revenues from $463m (£256m) to $504m, the London-based owner of nine communication satellites said growth came from new services and 'the benefit from global security events'.

As a major supplier of communications systems to the US navy and army, Inmarsat was closely involved in events in Iraq and the rest of the Middle East. It was these ties with the US military which potentially threatened the takeover by British private equity houses Permira and Apax Partners.

Pre-tax profits for the year to December increased 4.3% to $192m and the group said margins had been knocked slightly as customers migrated from more expensive analogue to lower-priced digital services.

Former chief executive Michael Storey, said to have made some £10m from the takeover before resigning to pursue other interests last month, saw his total pay package leap from $993,000 to $1.3m in 2003, as he picked up a maximum $754,000 bonus.