Profits halve at Ferranti but pipeline looks strong

PROFITS at defence equipment manufacturer Ferranti Technologies has fallen by 54% but a strong order book means the future is bright.

The Oldham-based company, which employs 182 staff, designs and manufactures products for the aerospace and defence sector, such as land systems, avionics and mission systems and training and simulation products.

Operating profits fell 54% to £968,000 for the year to the end of December 2010 (2009: £2.1m), while turnover fell 8.7% to £25.89m (2009: £28.38m).

Steve Warren, managing director of Ferrantti Technologies, said it was an “acceptable” performance considering the economic environment.

He added that the reduced operating profit was in part down to a slowdown in defence spending.

Brighter news comes from the company’s order book, which has strengthened despite the tough market, with £32.3m on order at close, up 28% on £25.2m a year earlier.

“This reflects the positive approach to working with our defence and commercial customers in difficult economic circumstances,” said Warren.

The company added that despite the  Strategic Defence and Security Review in October 2010, where a number of defence programmes were cancelled, there is still a “very accessible large market with considerable opportunities” for the company’s products and services.

Warren added: “In addition the commercial aerospace market continues to recover from the reduction in orders in 2009.”