Ricardo boosted by automotive recovery and defence orders
AUTOMOTIVE consultancy Ricardo has said it has begun to see signs of a recovery in the key passenger car sector after manufacturers helped to boost its order books.
In an interim management statement covering the six months to December 31, 2010, the group said the surge in demand had increased orders by 25% compared with the same period in 2009.
The group, which has a major innovation centre in Leamington, said the order book was expected to close at around £115m, compared to £99m this time last year, with a balanced portfolio of work.
Key projects were secured in the automotive market, off highway sector and its defence vehicle operation was boosted with an order by Force Protection for the set up and assembly of 200 specialist vehicles formerly known as Ocelot, now Foxhound. Production on the vehicles will start in July.
Within Technical Consulting, the UK division remains very busy and the German market is now seeing signs of recovery. The US division continues to grow and deliver improved returns compared to the same period in the prior year.
Strategic Consulting had a good start to the financial year and continues to grow.
The Performance Products segment, which reports for the first time in March, and which includes our assembly activity, showed solid business growth driven by increasing demand, largely from the defence sector.
The supercar engine programme has started producing customer engines and is planned to extend over a seven year period.
Improved orders generated cash which will be used to drive down debt. Net debt closed at similar levels to the financial year ending in June 2010.
“Overall, the market outlook continues to look positive with passenger car customers returning. We expect business growth for the half year and remain confident for further progress for the full year. Winning multi-year engineering programmes, commencing assembly of the supercar engine, and securing the Foxhound defence programme, all underpin longer term business,” said the statement.
Ricardo announces its interim results for the six months to December 31 on March 1.
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