British engineering consultancy Ricardo plc¡¯s profit before tax for its first half-year ended 31 December 2005 was up 37% to ¡ê4.2m, on turnover up 20% to ¡ê87.2m. The company says its order book was up 16% at year-end, to ¡ê67m.The performance improvement in the first half was driven by growth in strategic consulting, and UK and US operations. Ricardo says the second half has started well, but has not changed its full-year profit guidance.

Dave Shemmans, Chief Executive said the German operation, as predicted, had suffered in the period against a weak market.

Ricardo¡¯s controls and electronics operations continue to operate at full capacity, underpinned by a growth in hybrid programmes, while diesel programmes continue to grow on the back of the firm¡¯s low emissions research investments.

Strategic Consulting delivered an ¡®excellent¡¯ result in the half year underpinned by three significant programmes in Asia and North America. Ricardo¡¯s Prague development centre has expanded and now covers mechanical, electronic and software capabilities.

The UK business increased turnover and profits ¡®with a better balance of engine, transmissions, vehicle and electronics activity than previously¡¯. While the engines business benefited from an increase in demand for diesel technology, gasoline engine activity continued to be driven by Ricardo¡¯s Asian clients.

Activity increased in the transmissions business with some new supercar programmes and an increased level of engineering programmes from the commercial, passenger car and motorsport sectors. Research investments into dual clutch technology and safety related torque vectoring are reported to be gaining market interest with orders.

Ricardo is to invest in its control and electronics business, underpinned by significant hybrid interest and pending global on-board diagnostics and emissions legislation.