Sales and profits rocket at Ferranti Technologies
FERRANTI Technologies, the North West-based defence technology group saw sales and profits surge in 2008, its first year under the ownership of Israeli company Elbit Systems.
Ferranti, which designs and manufactures technology for the defence, aerospace and rail sectors, generates more than 75% its revenues from UK customers such as BAE Systems, the Ministry of Defence and Qinetiq.
Led by former solder Terry Scuoler Ferranti Technologies was acquired by Elbit in 2007 for £15m from the private equity arm of ABN Amro.
In the 12 months to December 31 2008 turnover surged 28% from £22m to £28.2m, while profits soared 300% from £563,000 to £2.3m.
In their report the directors attribute the hike in profits to the beneficial access to technology from its new parent company.
The company has an order book of £32m and declares itself “well positioned to take advantage of more technology sales in the UK and Europe”.
The directors note that the civil aviation market in struggling, but the defence sector – despite some concerns over budget cuts in the UK – is still robust.
“Notwithstanding the well publicised delay or cancellation to a number of defence programmes, there is a very large market with considerable opportunities for the company’s products and services.
“The commercial aerospace market however shows significant signs of weakness in the current financial market.”
The company says its broad-base across the air, land and naval sectors gives it some resilience from the squeeze in several market sectors.
“There must always remain the threat of Government budgetary cut backs of defence programmes and a cyclical downturn in commercial air travel and aircraft build rates. Although there are signs that some defence programmes are being targeted for cutback or delay, the overall UK market is still robust.
“The commercial aerospace market is however, as a result of the 2008 credit crunch/recession, under severe pressure with build rates slowing.
“The company’s position on a number of platforms covering the air, land and naval sectors also provides resilience in the event of a downturn in a single sector of the market.”
Ferranti Technology Systems is based at Cairo Mill, Waterhead, Oldham, where its staff of 190 work on power conversion, distribution and instrumentation systems for trains, executive and fighter jets, tanks, submarines, destroyers and other commercial and military vehicles.
Most recently it has added specialist products such as night vision goggles for pilots to its range.
