Ricardo enjoys strong orders despite Euro debt crisis
AUTOMOTIVE and engineering consultancy Ricardo has said it order book remains strong despite the ongoing debt crisis in the Eurozone.
In a trading update, the group, which has a major innovation centre in Leamington Spa, said that since November it had seen a strong pick-up in order intake across all its territories and divisions.
This includes orders for commercial vehicle engine development from Germany, agricultural engine development from the UK and Asia, motorcycle development from Europe, high performance engine manufacturing from the UK, supercar transmissions design and manufacturing from Europe, defence business from the UK and US, as well as orders in the rail and wind farm sectors.
As a result, the group’s order book is expected to close higher than the £117m reported a year ago.
“Notwithstanding the current economic backdrop, the profile and robustness of our order intake demonstrates the value of our sector and geographic diversification strategy,” it said.
The group said it was experiencing strong trading in its Technical Consulting business, particularly in the UK division and Germany was continuing to make progress. However, the US division has seen a marked slowdown in activity.
The Strategic Consulting business, representing approximately 5% of total revenue, has struggled with demand for services reducing as clients move towards smaller operations.
The Performance Products business has seen supercar engines and motorsport transmission volumes increase, while it has also delivered the new Foxhound vehicles to the Ministry of Defence. It is currently negotiating for the second tranche of the contract which involves the delivery of a further 100 vehicles.
Dave Shemmans, chief executive, said: “We are encouraged by the continued order intake levels. The strong order book provides momentum into the second half of the financial year.
“Despite a relative lull in the US market for the majority of the period, we remain very busy across the company.”
Ricardo will announce its interim results on February 29, 2012.
