Midlands defence computing company Radstone Technology yesterday revealed a rise in full-year profits slightly ahead of market expectations and said its key US market remains strong despite weakness in the dollar.
The Towcester-based company, which supplies computer products for the defence and aerospace industry, posted profits before tax, exceptional items and goodwill amortisation of £8.5 million in the year to March 31 compared to £7.4 million a year earlier.
Group turnover rose 14 per cent to £49.9 million compared to £43.7 million while the company raised its dividend for the year by 20 per cent to 3.6p, compared to 3p a year earlier.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20 per cent to £11.6 million from £9.6 million a year earlier.
"We have continued to deliver improved financial performance; have a record order book and a healthy balance sheet and so begin this financial year in a strong position," said Jeff Perrin, chief executive.
Last month Radstone Technology won a $26.7 million contract to supply technology for the US navy's torpedo upgrade programme.
Around 60 per cent of Radstone Technology's sales are in the US.
Mr Perrin said the weak US dollar had been the main drag on sales in its main market during the last fiscal year.
"We beat market expectations, however in the US we have been running up an escalator that has been going down."
But he said the dollar now appeared to be recovering, something which would help improve Radstone's long-term performance.
"We are reasonably confident about current and future years trading," said Mr Perrin, who added the order book stood at a record level of around £87 million.
Radstone, which supplies software and hardware to the defence industry, also stands to benefit from an overhaul of the US military.
Radstone has bought two companies over the last two years - Octec and ICS - and is looking for other acquisitions, particularly those specialising in missile and explosives testing, said Mr Perrin.
In a statement on current and future trading, Rhys Williams, Radstone's chairman, said: "The US defence market remains strong and its investment in technology to achieve a complete network centric battlefield, with armed forces that are equipped for rapid deployment, will mean that Radstone is well placed to benefit from our customers' requirements for high performance embedded computing."