Ricardo, one of the world's leading independent automotive consultancies, has reported a record increase in profits.

The Shoreham-based firm, which operates technical centres in the US, Germany and the Czech Republic, has a workforce of more than 1,300.

Clients include many of the world's major car manufacturers.

Pre-tax profits for the year up to June 30 were up by 23 per cent at £12.8million. Turnover increased by 27 per cent to £121.1million.

Ricardo chairman Sir Noel Davies said the company is optimistic about the future.

He said: "We believe that Ricardo is well placed to take advantage of opportunities emerging from the global automotive industry and expect to maintain profitable growth for the foreseeable future."

Sir Noel said the year had seen progress on a number of initiatives including the continued expansion of its customer base and the development of resources to match the workload.

Of particular importance was the winning of a contract from BMW for the new Mini project.

Subsidiary Ricardo Test Automation has recovered from a poor start to the year and now has an improved order book.

In the US Ricardo Inc has strengthened its position within the group although the office in Germany has made a slower start than had been planned.

The board has recommended an increase in the dividend to 7.4p compared with 7p last year.

Chief executive Rodney Westhead said that during the year Ricardo had delivered two important engine prototype programmes in record time, which he said was a significant contribution as customers strive to take time out of their development programmes.

He said: "The ways in which we carry out our business will change significantly in the next few years.

"We are likely to take on more large-scale projects, with dedicated project offices adjacent to customers sites involving mixed teams from Ricardo, the customer and component suppliers.

"We may also be involved in running customer facilities where these are of a research or development nature."