Profits rise at Radstone - Embedded.com

Profits rise at Radstone

London, UK — Embedded computer products supplier, Radstone Technology, which specialises in supplying the defence and aerospace sector has increased its profit before taxation in the six months ended 30 September 2003 by 74% to £1.18m on turnover of £18.5 million.

The figure includes a contribution from Interactive Circuits and Systems (ICS) which was acquired at the beginning of September and gross profit margin increased to 41.6% which the company says shows the effects of sales of higher margin rugged products into major programmes.

Jeff Perrin, group managing director, said, “The Embedded Computing business, the major part of the Group, has been strengthened further by the acquisition of ICS and a positive start has been made in the process of integration. As in previous years, trading in this part of the business is expected to be heavily weighted towards the second half and we are confident of a resulting strong performance in this period.”

Sales, including one month's contribution from ICS, increased marginally to £18,489,000, although like for like sales decreased by 6% to £17,225,000. A margin improvement in the existing business, resulted in the pre-tax profit.

During the first half of the year the group received a 17% increase in new orders to £30,078,000 with ICS contributing £2,158,000 to this total.

In the first six months of the year Radstone introduced seven products including the RT4PowerPact CompactPCI computer system, the IMPCC1 3U CompactPCI carrier card for PMC modules and the PMCGA3 high performance graphics board. These products enable Radstone to target the growing COTS avionics market where space is at a premium. During September the ICS subsidiary introduced the ICS-572 14-bit software radio product, combining both receive and transmit functions in one PMC module.

The electronic manufacturing services division, Foundation Technology, saw sale drop almost 8% below last year. In early July, the Towcester operation of the EMS business completed its move in to new premises in Milton Keynes.

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