Cheltenham-based Dowty Group Plc saw pre-tax profits up only 8% at UKP85m on turnover that rose 22% to UKP731m following the disposal of its mining equipment and industrial hydraulics businesses which constituted 20% of Dowty’s overall business. Net borrowing fell to UKP44.4m from UKP92.2m giving Dowty a gearing ratio to balance sheet equity of 16%. Interest was comfortably covered by operating profit. Within the group the Information Technology division is now the second largest business with turnover up 48% to UKP196.5m and an operating profit up 26% to UKP21.7m. The results include Case Communications for a full year and financial director Reg Moore thinks that the division’s margins were acceptable at 11% considering that Case is still being integrated into the group and that market conditions are generally difficult. However, he added that he would like margins to return to the previous level of around 13%. In the immediate future Dowty will concentrate on the organic growth of this business, although in the longer term it will be looking for acquisitions. Moore expressed no strong plans for growth, saying each division will grow as best it can in its market.
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