Following its acquisition of Case Group Plc, Dowty Group Plc’s Information Technology division is now a near UKP200m-a-year business: turnover for the segment in the six months to September 30 was UKP92.0m, up from UKP45.5m a year ago, representing 27% of the group’s total business in the period. It also proved the second most profitable after aerospace, recording operating profits of UKP9.2m against UKP6.0m a year ago – and aerospace would have done rather better but for the engineering unions playing up. After disposals, the business looks substantially healthier, with interest charges of UKP3.6m against UKP5.2m this time last year, and gearing down to 25% against 36% at March 31. On the Information Technology sector, Dowty is finding that margins are being squeezed, partly as a result of the cost of engineering new products, also because Case has traditionally operated on lower margins than Dowty’s core data communications business but the company has made new moves to improve profitability at Case since the period in question ended. The order book overall is valued at more than UKP2,000m.
