SSRO Recommendation Factsheet 2020
Total Page:16
File Type:pdf, Size:1020Kb
Recommendation factsheet 2020/21 Recommendation factsheet Under the Defence Reform Act 2014, the SSRO must provide the Secretary of State with its assessment of the appropriate rates used to determine the contract proft rate for pricing qualifying defence contracts and qualifying sub-contracts. For further information on the methodology used to calculate these rates please see the Single Source baseline proft rate, capital servicing rates and funding adjustment methodology. Baseline Proft Rate The baseline proft rate is Step 1 of the six-step process for determining the contract proft rate for a qualifying defence contract. The baseline proft rate is calculated from an index of public and private companies. The rate is a composite that combines search results from the “Develop and Make” and “Provide and Maintain” activity groups. The underlying rate is the average of the median capital servicing adjusted proft on cost of production of each group. The baseline proft rate is the three-year rolling average of the underlying rate. 2016/17 2017/18 2018/19 2019/20 2020/21 Underlying rate (unadjusted for capital servicing) 7.52% 8.39% 9.22% 9.85% 9.80% Capital servicing adjustment -1.46% -1.95% -1.28% -1.35% -1.57% Underlying rate 6.06% 6.44% 7.94% 8.50% 8.23% Baseline proft rate: 8.95% 7.46% 6.81% 7.63% 8.22% three-year rolling average of the underlying rate Note: The capital servicing adjustment accounts, at an aggregate level, for diferent levels of capital employed across the companies in the index and so sets a baseline upon which Step 6 of the contract proft rate applies. The pre-2016/17 underlying rates used for the three-year average were calculated using the Review Board’s methodology. 2014/15: 10.92%, 2015/16: 9.88%. Data sources For further information on the data selection approach please see section 7 of the Single Source baseline proft rate, capital servicing rates and funding adjustment methodology. A full search of the Orbis database1 was carried out on 11 November 2019 on data update number 189002 using software version 189. The fnancial data for the calculation was extracted from Orbis at the same time. 1 https://www.bvdinfo.com/en-gb/our-products/data/international/orbis 1 Recommendation factsheet 2020/21 Median capital servicing adjusted return on cost of production 12% 9.85% 9.80% 8.39% 9.22% 10% 8.95% 8.50% 8.23% 8% 7.94% 7.52% 7.46% 7.63% 8.22% 6% 6.81% 6.06% 6.44% 4% 2% 0% 2016/17 2017/18 2018/19 2019/20 2020/21 Underlying rate (unadjusted for capital servicing) Underlying rate Baseline profit rate Proportion of Companies by country Proportion of companies with defence keyword 27% 39% 43% 73% 18% Western Europe excluding United Kingdom United Kingdom Defence Other North America Supplementary statistics Number or companies 457 of which proft making 384 Aggregate turnover £1,220 Total capital employed (CE) £304 Average company CP:CE ratio 3.57 Source: Orbis (Cash fgures shown in GBP Billions) 2 Recommendation factsheet 2020/21 Names of companies in the index A C C Ingenierie et Maintenance * Avant Tecno Oy Chart Industries INC Electromecanica Naval E Industrial SA A/S Vestfrost Aviat Networks, Inc. Chemring Group PLC * Elettronica - Societa PER Azioni Aaon INC Aviation Training International Limited * CMZ Machine Tool Manufacturer Sociedad Energy Recovery, Inc. Limitada. AAR Corp Axcelis Technologies INC Environnement S.A. CNH Industrial N.V. AB Transitio Axon Enterprise, Inc. Esbelt SA Cobham PLC * AB Volvo Azkoyen SA Espey Manufacturing & Electronics Corp Cognex Corp Accuracy International Limited * B.M.B. S.P.A. Eurofghter Jagdfugzeug GmbH Coherent INC Actuant Corp Babcock & Wilcox Enterprises, Eurofghter Simulation Systems GmbH Cohort PLC Adcock Refrigeration and AIR Inc. * EUROJET Turbo Gesellschaft Conditioning Limited Cohu INC * Babcock International Group PLC mit beschraenkter Haftung Advanced Energy Industries INC Colfax Corporation BAE Systems PLC Europress Group Oy Aerdragon Aviation Partners Colosio S.R.L. Bailey Trailers Limited EVS Broadcast Equipment SA Limited Colt Investments Limited Barco NV Faro Technologies INC Aerojet Rocketdyne Holdings, Inc. Columbus Mckinnon Corp Barnes Group INC Fedegari Autoclavi - S.P.A. Aerovironment, Inc. Comerio Ercole S.P.A. Basic Energy Services, INC * Federal Signal Corp Aertec Solutions SL. Commercial Vehicle Group, Inc. BBA Aviation PLC Filtronic PLC Aggreko PLC Comrod Communication AS Bevan Group LTD Finning International INC Airbus SE Comtech Telecommunications Bioanalytical Systems INC * Flir Systems INC Airtanker Holdings Limited Corp Bittium OYJ Flowserve Corp Airtanker Services Limited Construcciones Y Auxiliar de Ferrocarriles, BK Technologies INC S.A. Forbes Energy Services Ltd. * AKO Electromecanica, SA L Blonder Tongue Laboratories INC* Continental AG Forum Energy Technologies, Inc. * Alamo Group INC Boeing Company (The) Cormach S.R.L. Fratelli Mazzocchia S.P.A. ALC (Superholdco) Limited Bombardier INC Costar Technologies, Inc. * Freightcar America, Inc. * Alfred Cheyne Engineering Borgwarner INC Cowles Holdings Limited Frigoveneta S.P.A. Limited* Boston Scientifc Corp CPI Aerostructures INC G.H.B. (Holding) Limited Alimak Group AB Brieda E C. - S.R.L. CTA International SAS Gama Aviation PLC * Allied Motion Technologies, Inc. Broadwind Energy, Inc. * CTT Systems AB GAP Holdings Limited Allimand * Bruker Corporation Cubic Corp Gatx Corp Allison Transmission Holdings, Inc. Brunvoll Holding AS Cummins Inc. Gencor Industries, Inc. Alstom S.A. Burkhalter Holding AG Curtiss Wright Corp General Dynamics Corp Altra Industrial Motion Corp. Burnside Autocyl (Tullow) Limited Cuypers Vorkliften General Electric Company * Altran Technologies SA BWX Technologies Inc. CVD Equipment Corporation * Gentex Corp American Axle & Manufacturing Holdings, Byggesystemer Norge AS Inc. Cyberoptics Corp Gesellschaft fuer Oeltechnik mit beschraenkter Haftung C&J Energy Services, Inc. * American Outdoor Brands Corporation Dallan S.P.A. GHL Holdings Limited C.M.A. S.P.A. Ametek INC Dalmec S.P.A. Glunz & Jensen Holding A/S * C.S.C. - S.P.A. Amtech Systems INC Dana Incorporated GNS Gesellschaft fuer Nuklear-Service Caci International INC Antonio Carraro S.P.A. Data I/O Corp mbH CAE INC Applus Services, S.A. Dawsongroup PLC GO Plant Fleet Services LTD * CAI International INC Aptiv PLC Deere & CO Gorman-Rupp Company (The) Calf S.P.A. Archrock, Inc. DEL BO Impianti S.R.L. Graco INC Calpeda S.P.A. Arts WAY Manufacturing CO INC* Della Tofola S.P.A. Graham Corp * Caprari S.P.A. Ashtead Group Public Limited Company Deutz AG Gray & Adams (Doncaster) Limited Carmanah Technologies Corp. Astec Industries INC * Dinolift Oy Greenbrier Companies, Inc. (The) Carrocera Castrosua SA Astronics Corporation Douglas Dynamics, Inc. Grovgaarden AS * Carver Group Limited Astronova, Inc. Dril-Quip INC * Guaresi S.P.A. Casagrande S.P.A. Atlas AIR Worldwide Holdings, Inc. Dublin Aerospace Limited Gulf Island Fabrication INC * Castledon LTD Atlas Converting (UK Holdings) Limited * Ducommun INC H&E Equipment Services, Inc. Caterpillar INC Atlas Copco AB Durr AG Harro Hoefiger Verpackungsmaschinen Ceco Environmental Corp. GmbH ATS Automation Tooling Systems Inc. DXP Enterprises INC Ceotronics AG * Havyard Group ASA * Autoliv, Inc. Edge Innovate (NI) Limited Heico Corp 3 Recommendation factsheet 2020/21 Heidelberger Druckmaschinen AG Lecitrailer SA Nordson Corp Ryder System INC Heroux-Devtek Inc. Leidos Holdings, Inc. Northrop Grumman Corporation Saab AB Hexcel Corp Leonardo S.P.A. Novanta INC Saalasti Oy Hiden Instruments Limited Lillbacka Powerco Oy * Nuova Idropress - Societa’ PER Azioni IN Saf-Holland S.A Forma Abbreviata NIP S.P.A. Honeywell International INC Linamar Corporation Safra Oceaneering International INC * Huntington Ingalls Industries, Inc. Lockheed Martin Corp Safran S.A. Ocrim - Societa’ PER l’Industria Hurco Companies INC Logset Oy Meccanica S.P.A. Sahala Works Oy HWA AG Lrad Corporation * Ofcina Bocedi SRL Saltire Energy Limited Idex Corp Luminex Corp Ofcina Meccanica Sestese S.P.A. Samp S.P.A. Ii-Vi INC M.T.A. Societa’ PER Azioni IN Sigla M.T.A. Ofcine Biefebi S.P.A. Sampo-Rosenlew Oy * S.P.A. Ilmor Engineering Limited Ofcine Meccaniche Galletti (O.M.G.) Sandvik AB Macpresse Europa S.R.L. S.R.L. Imer International SPA Schaltbau Holding AG * Mactaggart Scott (Holdings) Limited Omav - S.P.A. Indra Sistemas SA Schlatter Industries AG Magna International INC Ormet S.R.L. Indus Holding AG Schmitt - Elevadores, LDA Makron Oy Oshkosh Corporation Infcon Holding AG Science Applications International Corp Malm Orstad AS Oxford Instruments PLC Infrabel * SCM Group S.P.A. Manitex International, Inc. * P B Donoghue (Waste Management) Ingenieria Y Tecnicas de Montajes Lointek Seacor Marine Holdings Inc. * SL Manitou BF SA Limited Sele S.R.L. Ingersoll-Rand PLC Manitowoc Company, Inc. (The) * P P S Commercials Limited Servotronics INC Innovative Solutions & Support INC * Marel HF. P.F.M. - S.P.A. Shefeld Forgemasters International Paccar INC Insta Group Oy Mariani S.R.L. Limited Park Aerospace Corp. Interroll Holding AG Maritime Partner AS * Sicamb - S.P.A. Paul Mueller Company Intevac INC * Maschinenfabrik Berthold Hermle AG Siemens AG PC TEL INC * Intricon Corporation Matteuzzi SRL Sigma Industries Inc. Pekkaniska Group Oy Invertek Drives Limited MAX Automation SE Skako A/S Perceptron INC Istobal SA Maxar Technologies Inc. * Smith Brothers (Leicester) Limited Petards Group PLC Italcab S.P.A. Mccoy Global Inc. * Smiths Group PLC Pietro Fiorentini S.P.A. Jacobs Engineering Group INC Mcgrath Rentcorp Snc-Lavalin Group INC * PKL Topco Limited James Fisher and Sons Public Limited Meggitt PLC Societe Nationale de Construction Company Aerospatiale * Mercury Systems INC Polaris Industries INC John Bean Technologies Corp Socket Mobile, Inc. * Mikron Holding AG Ponsse OYJ John Nixon Limited Spartan Motors INC Miller Industries INC Portsmouth Aviation Holdings Limited * John Wood Group P.L.C. Speedy Hire PLC Mino S.P.A. Powell Industries INC * Judges Scientifc PLC Spirax-Sarco Engineering PLC MKS Instruments INC Pratt & Whitney Canada Customer Service Centre Europe GmbH A Joint Kadant INC Spirit Aerosystems Holdings, Inc.