Racal Electronics Plc has announced restrained results for the half year ended October 13. Turnover was up 5% at ú505.6m with operating profit rising 23% to ú31.0m. Profits from national lottery operator Camelot Plc – in which Racal holds 22.5% – amounted to ú8.2m. However, the Data Communications group, of which the lottery business forms a part, saw turnover drop by 4.6% to ú188.2m as a result of quitting mature product lines and a reduction in revenues from Racal-Transcom. People will say if it weren’t for Camelot it would increase our losses. May I clear this up once and for all – Camelot is our business, said David Elsbury, Racal’s chief executive. We installed it, we run it – it is our business, it is part of the Data Group. We’ll be running it for seven years, and that’s part of the plan. Radio Communications sales fell from ú97.5m last year to ú90.5m this year, although the company says it expects full year turnover to be much the same as last. Turnover in Defence Radar and Avionics rose by 53% to ú82.1m, with profits trebling to ú8.0m. For the full year, says Racal, results are liekly to be better than those for last year, with good progress being shown in most businesses. The company does still have a potentially damaging disagreement with the Inland Revenue hanging over its head, relating to the buy-out of minority interests in Racal Cellular in 1986. If it is unsuccessful in its appeal, it will become liable to payments totalling some ú11m.
