The Medium Girder Bridge in disater relief action

Defence group secures £17m U.S order

6 April 2009
WFEL, the Stockport based defence engineering group, backed by UK mid-market private equity house Dunedin in 2006, has secured a £17.7m order from the U.S Department of Defense to supply a further tranche of its next-generation military bridging system.

The order – an option under a long term contract secured in 2000 – includes the supply of eight M18 Dry Support Bridges (DSB) and associated support services for delivery over the next three years.

To date, the US has ordered a total of 85 units under the contract, worth a total value in excess of $350 million, and has options to order a further 43 before 2016.

The DSB is part of WFEL's suite of bridges, which are used by militaries in conflict zones and areas struck by natural disasters. Deployed by eight soldiers in just 90 minutes, it can span a 46 metre gap and support loads of more than 110 tonne.

The firm also said its support services division is currently negotiating a separate contract with the U.S to refurbish existing DSBs and Medium Girder Bridges (MGB) used in Iraq, and was bidding for a potential five-year contract with the UK Ministry of Defence to inspect and repair MGBs and Air Portable Ferry Bridges (APFB).

WFEL, which was the subject of a £48 million management buyout in December 2006 backed by private equity firm Dunedin, confirmed the orders as part of a full year trading update for the 12 months to 31 December 2008.

During the period, the company grew turnover to £29.6m (2007: £27.8) and profits to £5.8m (2007: £5.7m). Its total secured order book stood at £42m.

WFEL chief executive, Ian Wilson, said the firm's twin-track sales strategy of targeting customers in new territories with its suite of products, as well as existing customers with support services packages, was paying dividends.

He said: "Tactical bridging is a planned military purchase and this continues to insulate the group against the current global recessionary climate. Forward demand remains strong and we're currently in discussion with over 65 new customers, including militaries in the Middle East and Far East."

"We've supplied over 500 MGBs which are in service throughout the world, as well as dozens of DSBs. This creates a huge opportunity to provide our technical expertise in repair and maintenance to existing customers."

The company said it would also continue to look for opportunities to apply its defence engineering expertise to other related markets. Last year, it completed the construction of a 250 tonne 'ski jump' for the U.S Department of Defense, where it will be used by pilots testing the new F-35 Joint Strike Fighter (JSF).

Dougal Bennett, director at Dunedin, who led the original deal comments: "Since Dunedin's original investment in December 2006, we have seen substantial growth in sales, employment and opportunities open to the business.

"We have worked closely with the management team to create value and drive sales into new markets around the world. The new contracts have allowed the Company to increase its manufacturing workforce by 60% to 128 people, a rare manufacturing success story in the current environment.

"WFEL's development, engineering and manufacturing resources are state of the art which supports its strong track record of specialist expertise, innovation and engineering excellence."