A fall in deliveries by armoured vehicle manufacturer Alvis, which last week recorded a fall in profits of 38% up to 31 March, should soon be turned around, according to the company, which reports full order books.
The results showed Avimo, the electro-optics business in which Alvis has a 43% stake, brought in £1.1m of total pre-tax profits of £3.1m.
Deliveries of armoured vehicles including Stormer personnel carriers and Scorpion tanks, which usually contribute most, turned in only £857,000. The balance was in interest on a cash pile up during the period by £14.6m to £41.7m.
For the full year, however, vehicle sales – and profits – will increase as payments flow from the £80m order Alvis has from Indonesia.
The company is confident of a further £40m of orders coming for the `dieselisation’ of Scorpion fleet engines. Alvis has an order book worth £140m, 91% of it in special vehicles.
Future prospects include increased profits from the Unipower heavy transporters arm, reduced losses in the gears business, and the growing profitability of Avimo.
Britain’s biggest and most powerful truck took to the roads last week. Capable of 50mph, the 122 tonne tank transporter was built at Watford by Alvis Unipower, part of armoured vehicle manufacturer Alvis. The new transporter will undergo desert trials in the United Arab Emirates this summer, with Alvis hoping to win a contract to supply the UAE land forces, which are looking for at least 120 new tank transporters