Ferranti Technologies hails ‘creditable’ results

DEFENCE contractor Ferranti Technologies has described its performance as “creditable” given the spending squeeze most of its customers are facing.

The Israel-owned, Oldham-based manufacturer, whose range includes training and simulation systems, digital mapping tools and night vision technologies, saw growth in sales, profits and its order book during 2011, recently-filed accounts reveal.

Part of Elbit Systems since a £15m takeover in 2007, Ferranti Technologies counts BAE Systems, the Ministry of Defence and Qinetiq among its customers. It employs around 180 people at its base on Greenacres Road, Waterhead.

Profits in the year nudged ahead by 2% to £902,000 from £885,000 on turnover of £26.4m, which was up by a similar percentage.;

Managing director Steve Warren said: “This was a creditable performance considering the economic environment we are currently in.

“The operating profit for 2011 (£969,000) shows a similar performance to the previous year and we have continued to invest in the business in capital expenditure and key personnel, particularly in business development which will bring benefits in the future.

“The closing order book stands at £33m (2010 £32m), a 3% increase on 2010, and this reflects the positive approach to working with our defence and commercial customers in difficult economic circumstances.

“The company is well-positioned to take advantage of more technology sales in the UK and Europe.”

Addressing the issue of spending cuts in the defence sector, which have hit contractors such as BAE Systems hard, Mr Warren said: “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.

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