It’s when nothing untoward happens that electronics boffins at a Shipley-based defence contractor can be satisfied that they’ve done their job.

Designing state-of-the-art warning systems to detect signals from potential enemies is the raison d’etre of the 125-strong team at Teledyne Defence Ltd, whose base is tucked away at Acorn Park in the Aire Valley.

There’s much classified work that managing director Keith Ferguson is not allowed to talk about. But he is happy to discuss the US-owned firm’s latest project, named Phobos after the Greek god of fear.

This is a warning system recently sold to the Royal New Zealand Navy which heralds a move into cheaper, lighter and slightly less-sophisticated equipment. The trend has been necessitated by stringent defence cuts in the UK and other western democracies – except the United States, which Keith describes as a largely-closed market to companies in the rest of the world.

It was the first order for the new system, which ironically was designed for much smaller vessels than the two frigates on which it is now being used.

Using less energy than more sophisticated and expensive equipment, Phobos is a compact and easy-to-install system which enables users to detect signals and potential threats, whether on the battlefield or from possible terrorists, Mr Ferguson said development of Phobos was part of the evolving nature of the defence equipment industry and would help to keep Teledyne at the forefront of the changing market.

“As the electronic defence market changes, we need to change with it to meet the needs of our customers and their end-users,” he said.

Originally Filtronic Components, launched by Professor David Rhodes, the company has been supplying electronic defence systems for more than 30 years and is now regarded as a world leader in the design and manufacture of electronic warfare components and systems.

The Shipley factory designs and produces the broadest range of devices and systems of any firm of its kind in Europe.

The operation became part of the $2 billion US-based Teledyne Technologies Company in 2009 when Filtronic pulled out of the defence arena to focus on its wireless communications business.

Mr Ferguson, who joined the firm as a graduate in 1982 and has worked his way up, said the American bosses allowed the Shipley operation a fair degree of autonomy – so long as it remained profitable.

“Filtronic’s approach to doing business was more gung-ho and very entrepreneurial, whereas US businesses focus strongly on the bottom line and Teledyne’s owners reflect that philosophy.

“But, so long as we are making money, they do allow us to operate in our own way,” he said.

Mr Ferguson was speaking still jet-lagged the day after returning from the parent group’s base near Hollywood, California, where he had faced his quarterly grilling from his US bosses.

“Its a very thorough process which looks in detail at each division’s operations and the challenges and opportunities facing the businesses. Fortunately, we are making good progress and the direction of the operation remains on track,” he said.

Teledyne Defence comprises the electronics factory at Shipley together with a small development team in Brisbane, Australia. The company’s main markets are in the UK, Europe, Israel and India and Mr Ferguson sees growing opportunities in South America as well as India, where demand for the more sophisticated defence systems is increasing.

For political reasons there are some parts of the world in which Teledyne cannot trade and the United States remains mainly closed to its products, in spite of being US-owned.

“The US defence equipment market is generally closed to foreign suppliers, unless there is a specific need, but opportunities are few and far between. The fact that we are US-owned does not make us immune to the very strict controls that are in place with regard to overseas defence companies,” said Mr Ferguson.

Its products are designed and developed for markets in defence, homeland security, electronic warfare, radar and communications.

In essence, Teledyne’s systems and components are focused on the interception and sorting of signals that alert military and security users to potential ‘rogue’ signals.

Precision manufacturing at the Shipley factory is certified by a number of ISO and other industry standards.

Mr Ferguson said the firm’s wide range of skills and expertise enabled it to make the best use of cost-effective technology to manufacture high-quality products.

Following the sale of the Phobos system to the New Zealand navy, Teledyne is dealing with interest from a range of other potential buyers.

Mr Ferguson said: “With the huge defence spending cuts being seen here and elsewhere, it’s very unlikely that the sector will return to expansive major projects for some time, if ever.

“The need is for systems that are good, but less sophisticated and therefore cheaper. That’s where we’re now focusing our efforts. We’ve recognised the trends in the electronic warfare market and are investing in the development of new products and systems which offer fully-integrated solutions to the problems faced by tomorrow’s designers.

“We will continue to devise, design and produce state-of-the-art products for the UK and the rest of the world that will provide smaller, lightweight technology that filters signals in different environments, “We are carrying out research and development on the next generation of digital electronic systems that will offer a range of solutions suitable for border security applications worldwide. They will be for military or non-military use on land, sea and in the air.

“This is an area in which Teledyne Defence is at the forefront of development.”