Ricardo racing ahead

Indeed, AEA outperformed almost every month under new ownership and underlying operating profit at Ricardo's core technical consulting division leapt 26 per cent to £18.5m. Ricardo's buying power is helping and opening up new markets such as India and the Far East. Yet, even without AEA, the division grew profit by 7 per cent to £15.7m. Crucially, US carmakers have begun placing orders again and should put more business Ricardo's way. Japan, where sales grew 26 per cent to £18.3m, has done well in the past few months, too, and there are "some nice jobs in the pipeline that are quite material", says chief executive Dave Shemmans. He also reckons the Chinese sales of £8m should be "nearer £20m". With £12m of work booked already, it looks likely.

Elsewhere, profit at Ricardo's performance products business nudged up to £6.1m, driven largely by the Foxhound armoured vehicle, and demand from both McLaren and Bugatti.