Cobham issues profit warning
UK aerospace and defence company Cobham this week issued its fourth profit warning in just over a year.
Cobham said in a trading update that its unaudited draft management accounts for 2016 showed group trading profit of £245 million, below the range of between £255 million and £275 million set out by management in October.
The company said there is significant uncertainty surrounding the outcome of the KC-46 air-to-air refuelling tanker programme. Cobham said it “remains in discussions with its customer on the commercial terms for the complex conformity and qualification phases of this contract, which are taking place concurrently with the early phase of production”.
Unaudited net debt at the end of the year was £1.03 billion, compared with £1.21 billion in 2015.
UK production grows
Industrial production rose by 2.1% in November, according to the latest statistics from the Office for National Statistics. The increase was driven by strong manufacturing output and the reopening of the North Sea’s biggest oil field following a shutdown.
The ONS said manufacturing output increased by 1.3% month-on-month in November, driven by growth in pharmaceuticals, which saw double-digit growth.
Amec Foster Wheeler wins ITER contract
Amec Foster Wheeler has been appointed to carry out design development work on an integrated plant simulator for the ITER nuclear fusion reactor.
The company will draw up technical specifications and implementation plans for the simulator along with three subcontractors: the UK Atomic Energy Authority, Fortum, and VTT Technical Research Centre of Finland.
The simulator will bring an integrated approach to the training of operators and will support the commissioning and operation phases at ITER, which is building the world’s largest nuclear fusion machine at Saint-Paul-lez-Durance in the South of France.
MTC welcomes new member
Building contractor Skanska UK has become the latest company to join the Manufacturing Technology Centre.
The MTC, which develops and proves innovative manufacturing processes and technologies in a low risk environment, will play a key role in supporting Skanska to meet the targets set out in Construction 2025 industrial strategy.
Skanska UK’s membership will enable the further development of new technologies, some of which are already being trialled at the MTC. It will also support the opportunity to work in collaborative teams, with clients and supply chain partners.
Walker Precision Engineering wins Leonardo deal
Glasgow-based Walker Precision Engineering has secured the first contract for its newly-acquired English subsidiary.
The engineering firm created Walker Guidance Systems in December by acquiring an environmentally temperature-controlled, high precision machining and assembly centre from Leonardo, the global aerospace, defence and security company.
Leonardo subsequently placed an order for critical airborne and guidance products with WGS which is based in Basildon, Essex. The plant also produces gyroscope, seeker and optronics components.
Walker plans to invest more than £5 million in its new subsidiary to support Leonardo’s requirements and its ambitions to grow within the airborne and space market sectors.
Autonomous vehicle start-up appoints word-renowned academics
FiveAI, a UK start-up using artificial intelligence and machine learning to deliver fully autonomous vehicles, has appointed two world-renowned academics as scientific advisors.
Professor Andrew Blake is the director of the Alan Turing Institute, the UK’s national research institute in data science, and an honorary professor in information engineering at the University of Cambridge.
Dr Subramanian Ramamoorthy is a reader in robotics in the School of Informatics at the University of Edinburgh, affiliated with the Institute of Perception, Action and Behaviour. He leads the robust autonomy and decisions research group, whose focus is on achieving interactive intelligence in autonomous robots capable of working with humans and other robots.
Funding agreed for renewables R&D campus
Plans for a multi-million pound research and innovation campus in Stromness in Orkney are set to go ahead after the Highlands and Islands Enterprise (HIE) and Orkney Islands Council (OIC) agreed funding for the project.
The 3.75-acre campus will support the growth of existing research and innovation activity and the expansion of companies in Orkney’s world-leading marine renewables, energy and low carbon sector.
The HIE Board has approved up to £5.15 million for the project, including £1.48 million of European Regional Development Fund. Orkney Islands Council is to provide £1.5 million in funding.
UK manufacturers face more uncertainty
The UK’s manufacturers are starting the new year facing yet more uncertainty and unpredictability, according to the EEF’s annual Executive Survey.
The research revealed that 25% of firms expect UK economic conditions to improve, outpaced by those steeling themselves for a decline (47%). The view is similar when it comes to global economic conditions too, where 24% anticipate improvement and 36% predict deterioration during 2017.
This more pessimistic outlook does not taint manufacturers' views of their own future performance though. In the year ahead, 56% of firms expect to increase their productivity, while half expect to boost UK sales. There is good news on the export front, too, where over four in ten firms expect to see improvements in volumes – 43% in non-EU and 41% in EU exports.
Leonardo wins MoD deal
The Ministry of Defence has signed a £271 million deal with Leonardo Helicopters to continue to support world-leading Wildcat helicopters, protecting 500 highly-skilled British jobs.
The five-year deal will deliver a range of support and training services for the UK’s entire fleet of 62 AW159 Wildcat helicopters, currently in service with the Royal Navy and Army Air Corps.
The new Wildcat Integrated Support and Training contract will also support jobs in Edinburgh and Luton, where Leonardo manufacture defensive aids systems, and Crawley, where subcontractor Thales UK provide support to communication and aircraft management systems.
Atlantis launches new division
Tidal power company Atlantis Resources is to expand into other forms of water-based renewable energy and open a new division in Edinburgh.
Atlantis Energy will initially focus on opportunities to develop subsea interconnectors, tidal barrage and lagoon projects, floating offshore wind opportunities and pumped storage projects. It will do so on behalf of infrastructure funds, investment banks and private developers who are looking to invest in renewable and grid-related projects in the UK.
The new division will be up and running by the end of March.