Mini boom driving Ricardo on

CAR engineering group Ricardo is revving up as motor manufacturers bring new models ever faster to market. Profits before tax rose 12% to £7.6m in the six months to 31 December for Ricardo, which helped develop, install and calibrate the powertrain of the new Mini as well as the transmission and gearbox of the VW that broke the 24-hour world land speed record.

Chief executive Rodney Westhead said that uncertainty, particularly in the US, is making carmakers keen to outsource the kind of things Ricardo does.

The group, which is based in Shoreham, Sussex, has recruited 45 graduates and made less-qualified staff redundant in a move from engine testing to development and consultancy.

Turnover on continuing operations was up £2.8m at £69m and earnings per share rise 13% to 11.1p, helped by a tax break. The interim dividend is up 0.1p to 2.6p.