Automotive recovery boosts Ricardo order book

THE continuing recovery in the global automotive sector has helped boost order intake at engineering consultant Ricardo.

The company, which has a major innovation centre in Leamington Spa, said orders for the four months to April 30, 2011 had risen 18% compared with the same period last year.

In an interim management statement the group said notable orders included engine hybrid work in Germany, further engine work with a strategic UK partner as part of a multi-year programme and a new engine programme for a Chinese client.

Revenue during the period was up 31% on the same period last year. The order book at the end of April remains strong at £104m, compared to £87m this time last year.

Dave Shemmans, Ricardo chief executive, said: “We are pleased to see the revenue, order intake and order book all tracking ahead of the same period last year.

“We are seeing some traditional clients returning as well as welcoming new clients from across the world from a wide range of sectors. The operations are busy and our balance sheet remains strong on the back of continued good cash performance.

“Despite previously communicated cost overspends on one engineering programme, we remain confident for further progress for the full year.”

He said the Technical Consulting business was benefitting from a strong mix of orders and continued to be very busy in the UK where both permanent and subcontractor headcount has grown to match this volume increase. Both its German and US divisions continue to increase their presence in their local markets.

The group’s Performance Products business began shipping supercar engines in February, while it said it expected delivery volumes to ramp up in the next financial year, which is also when deliveries of its Ocelot/Foxhound defence vehicle will begin.

The Strategic Consulting operation has found market conditions challenging with some delays to order placement, despite this its saw business growth compared to the same period last year.

The group said it was continuing to receive orders from clients in Japan despite the disruption caused by the March earthquake and tsunami.

Ricardo will announce its full year results for the 12 months ending June 30, 2011 on September 26, 2011.

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