Engineering news
South coast-based engineering firm Ricardo has announced it is to launch a defence subsidiary in the US while reporting an increase in profits.
Ricardo Defense Systems (RDS) will be based at the company's existing site in Detroit, Michigan, where a “full-time” team will focus on the needs of the US defence market. It aims to work with both government agencies and US manufacturers on defence-related vehicle technology development and engineering projects.
Paul Luskin, president of Ricardo Defense Systems, said: “We are excited to have created an organisation that brings to bear all of Ricardo’s existing expertise in wheeled and tracked vehicles, powertrain, electronics, and software engineering to better serve our military customers and servicemen and women. At the same time, we will be expanding our skills and pursuing previously unavailable opportunities.”
RDS will launch after the extensive approval process for a Special Security Agreement is completed, said Ricardo. The “necessary investments in people, processes, and facilities” also remain to be made.
Ricardo employs around 2,000 engineers, scientists and consultants globally in the transportation, energy, resources and waste sectors. It is best-known for its work in the automotive sector, where it designs and develops, engines, transmission, hybrid and electric systems.
Meanwhile, the company also reported a 9% increase profits to £10.1 million for the six month period to the end of December 2014 compared to the second half of 2013. Total group revenues increased by 8% to £120.5 million. The company's order book was £138 million, slightly down from the £142 million order book it reported at the end of the first half of 2014.
Dave Shemmans, chief executive of Ricardo, said: “We continue to win orders from across all geographies and market sectors in which we operate and have again delivered profit growth together with good operating cash generation.
“Two small bolt-on acquisitions were completed in the period and the balance sheet remains strong to support our further growth. The second half has started well with strong order intake leading to a record order book of £152m at the end of January.”
The company bought two firms during the second half of last year: automotive powersport engineering consultancy Vepro and power systems consultancy PPA Energy.