Bombardier smashes £1bn mark

Turnover has smashed through the £1bn mark at Derby-headquartered Bombardier Transportation UK, new figures have revealed.

Newly filed accounts for the year to 31 December 2018 show the business achieved a turnover of £1.24bn, up from £834.2m.

A statement signed off by the board said ""The rail market continues to be very resilient despite economic uncertainty and the EU referendum result in June 2016. Order levels in general in the rail industry have continued to be at the high levels seen over the past few years, demonstrating not only the industry is less subject to short-term volatility than other industries but there is an appetite for investment in the industry."

Announcements made in 2018-19 by Bombardier have included: winning a £72m contract to make 27 new trams for Transport for Greater Manchester; the sale of its UK rolling stock electrical component and system production and installation activities in a deal worth about £10.9m; an increased order from Transport for London for five additional trains for the city's Elizabeth line, increasing the contract value to £73m; a new £133m contract to maintain trains for Abellio and Eversholt Rail for the new East Midlands Railway franchise; and a key role in a €4.1bn monorail project in Cairo.

In March 2019 it was announced that an extra 300 jobs are set to be created at Bombardier's Derby plant to help meet its manufacturing demand over the next two years.

Despite its pre-tax profits dipping from £89.7m to £47.3m over the same period, a statement signed off by the board said "Turnover increased and profitability decreased against the prior year due to mix of contracts and impacts of exceptional items but continues to be strong and the company is undertaking a number of key contracts within the UK.

"Bombardier management is continuing its commitment to address costs across the organisation and improve the risk management throughout the execution of the contracts."