TIDMRCDO
RNS Number : 3138O
Ricardo PLC
31 January 2023
Ricardo plc
Trading update
31 January 2023
Ricardo plc ("Ricardo") is a global strategic, environmental,
and engineering consulting company. We provide exceptional levels
of expertise in delivering innovative cross-sector sustainable
outcomes to support energy transition, scarce resources,
environmental services, and safe and smart mobility. Our global
team of consultants, environmental specialists, engineers and
scientists support our customers in solving the most complex and
dynamic challenges to achieve a safe and sustainable world.
Good progress in the first half
Ricardo has delivered a good performance in the six months to 31
December 2022 (the period). Overall trading is in line with the
Board's expectations, with good revenue and underlying profit
growth. The Group's guidance for the full year remains
unchanged.
Order intake in the period was strong at GBP290m, up 42% on the
six months to 31 December 2021 (the prior period) and up 34% on the
six months to 30 June 2022 (growth of 36% and 28% respectively on a
constant-currency basis). The order book at 31 December 2022 was in
excess of GBP410m compared to GBP340m at 30 June 2022 and GBP311m
at 31 December 2021. Revenue for the period was above GBP210m, 17%
up on the prior period (growth of 12% on a constant-currency
basis). All figures are on a continuing operations basis.
Aligned with our sharpened strategy, which was presented at
Ricardo's Capital Markets event in May 2022, we are renewing our
approach to disclosure to reflect our focus on Ricardo's
environmental and energy-transition portfolio.
Environmental and energy-transition portfolio
-- Energy and Environment delivered very strong growth in
orders, revenue and profit, with a good performance in energy and
carbon regulation, waste-resource management and our air-quality
services.
-- Rail delivered a similar level of orders as in the prior
period and as previously communicated, has seen a reduction in
revenue and profit because of the timing of larger long-term
projects
-- A&I Emerging Solutions delivered orders similar to the
prior period with positive revenue growth and profit
performance.
Established mobility portfolio
-- Defense delivered strong growth in all metrics, driven by
increased ABS/ESC volumes and a rise in orders for our engineering
services.
-- Performance Products delivered a strong growth in orders in
the first half. Revenue and profit were slightly behind
expectations, as a result of continuing supply-chain
challenges.
-- A&I Established mobility orders and revenue significantly
declined, driven by increased economic uncertainty, which led to a
loss in the current period. As previously communicated,
restructuring actions are already underway. However, reflecting on
this performance, we are reviewing options to accelerate our
plans.
Continued strong cash generation
At 31 December 2022, net debt was GBP31m compared to GBP35m at
30 June 2022 and GBP39m at 31 December 2021. The reduction includes
proceeds from the sale of the Software business during the
period.
Strategic progress
Following the acquisition of Inside Infrastructure in March
2022, we made a further acquisition in January 2023, acquiring a
93% shareholding in E3 Modelling S.A. (E3M), a consulting company
that provides advanced empirical modelling services. The
acquisition of E3M allows Ricardo to expand its unique position at
the intersection of the energy, environment and mobility agendas,
providing digital modelling capabilities right across the markets
that we serve as a Group. Both acquisitions support the expansion
of our environmental and energy transition services portfolio.
Graham Ritchie, Chief Executive Officer, commented:
"We continue to see strong order-intake growth for the Group
and, as a result, our Group guidance remains unchanged for the full
year. The greater clarity and transparency of our strategy to focus
on environmental and energy transition is gaining momentum in our
operational actions and financial performance, as demonstrated by
the strategic acquisition of E3M and the delivery of our
expectations for half-year operating profit. Although the global
economic outlook continues to create uncertainty, we remain
confident that we are taking the right actions in the short term
and will benefit from the strong long-term growth drivers to
deliver on our ambition - to become a world-leading strategic and
engineering consultancy in environmental and energy-transition
solutions.
Half-year results
The results for the half year ended 31 December 2022 will be
released on 1 March 2023.
Investor contacts
Natasha Perfect
Ricardo plc
Tel 01273 455 611
Natasha.perfect@ricardo.com
Elisabeth Cowell
SECNewgate
Tel 020 3 757 6882
Ricardo@secnewgate.co.uk
About Ricardo plc
Ricardo plc is a global strategic, environmental, and
engineering consulting company, listed on the London Stock
Exchange. With over 100 years of engineering excellence and close
to 3,000 employees in more than 20 countries, we provide
exceptional levels of expertise in delivering innovative
cross-sector sustainable outcomes to support energy transition and
scarce resources, environmental services together with safe and
smart mobility. Our global team of consultants, environmental
specialists, engineers and scientists support our customers to
solve the most complex and dynamic challenges to help achieve a
safe and sustainable world. Visit www.ricardo.com
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