Engineering group Ricardo hits top speed as profits soar

By RUTH SUNDERLAND
Updated: 15:42 EDT, 26 September 2011

Engineering group Ricardo posted a gloom-busting profit thanks to work on new super cars including the McLaren 12C and the Bugatti Veyron.

Top-end sports cars have defied the slump thanks to strong demand from the global super-wealthy.

Profit at Ricardo rose 43 per cent to £15.4million for the full year and the dividend was increased 7 per cent to 11.5p a share.

Racing ahead: Engineering group Ricardo posted a gloom-busting profit thanks to work on new super cars including the McLaren 12C and the Bugatti Veyron

Chief executive Dave Shemmans said: ‘Overall the market for Ricardo remains positive and active in spite of a continuing uncertain global economy.’

The company makes transmissions for the Bugatti Veyron and launched the McLaren supercar engine into production.

It has also gone into defence, winning a competitive tender from the Ministry of Defence with Force Protection Europe for the Foxhound Light Protected Patrol Vehicle.

Shares in Ricardo, up 7p at 357p, are 20 per cent higher than 12 months ago, though they have dropped from their recent peak of more than 400p.

The company has net cash of £1.5million compared with net debt of £7.8million a year ago, and its order book has risen by £6million to £107million.

Shemmans said he is focusing on clean and energy efficient technology and that he is ‘confident’ for the future.