VFG has trashed high market expectations with low levels of activity, which have damaged its profit line. Indeed, in the half-year to May losses of £1.8m were rolled out (£0.2m). This is despite overall sales being up 53% to £12.2m, with like-for-like turnover increasing 11% to £8.9m. VFG specialises in hiring production equipment and manufacturing filters and in August acquired 5% of eMuse, an Irish company specialising in interactive TV. It has sealed contracts with prestigious names and during the period its equipment was used in many major film and TV productions, including Bridget Jones's Diary, Holby City and Ballykissangel. Nevertheless the company cannot hide that its limp first half results have dashed any chances it may have had of making £2.5m in profits for the full year, as predicted by its broker Teather and Greenwood. One to avoid.