The engine and vehicle manufacturer, Ricardo, said that it has seen a strong level of order intake across multiple geographies in its latest trading update for the six month period ending 21 December 2011.
Company figures show strong orders across its six key markets:
- 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
Since Ricardo’s Interim Management Statement issued in November 2011, it has continued to see a strong level of order intake. As a result, revenue is expected to close higher than the £117 m a year ago when it announces its interim results on 29 February 2012.
The company has said that that, considering the current economic backdrop, the profile and level of its order intake demonstrates that its sector and geographic diversification strategy is proving to be successful.
Despite this, the company was less confident about its Technical Consulting division, which accounts for approximately 5% of the firm’s total revenue. The US division has seen a marked slowdown in activity, Ricardo putting this down to weakening demand for strategic services as clients move to smaller operational focused activities.
However, the UK and German divisions have continued to make gradual progress as its engine plants in Cambridge, Leamington Spa and Shoreham, West Sussex continue to play a heavy role in its vehicle business.
Ricardo’s performance products business has continued to deliver an increasing volume of supercar engines and motorsport transmissions. Furthermore, it is delivering Foxhound vehicles for the UK Ministry of Defence and is in currently in negotiation for the contract of 100 additional vehicles.
The company’s CEO, Dave Shemmans, was encouraged by the order intake levels and said that it provided momentum into the second half of the financial year.
Mr Shammans commented: “We remain encouraged to see clients placing work with Ricardo to achieve C02 reduction and emissions legislation targets and that our strategic partnerships continue to develop.”
“Despite a relative lull in the US market for the majority of the period, we remain very busy across the company. Strong financial management of our costs and cash flow continues and we have maintained a strong balance sheet. We remain confident of our progress for the full year.”
