Ricardo turns the corner

Automotive consultants Ricardo bounced back with a better-than- expected end to 2004 as its UK operations returned to the black and it made strong progress in Japan.

West Sussex-based Ricardo delivered a £3m pre-tax profit in the six months to December compared to just £200,000 at the same stage in 2003.

The company — which operates a global technology development and consultancy network serving many of the world’s major automotive OEMs — said it was ‘cautiously optimistic’ over its prospects for the full financial year in light of the progress made so far.

Ricardo was forced to make swingeing cost cuts last year in reaction to market conditions which it described as the toughest in its history.

The effect of the £10m savings began to filter through in this week’s interim results, but there were also signs of a broader recovery in Ricardo’s fortunes.

The group’s orders rose by 28 per cent to £58m despite what it admitted were ongoing areas of weakness.