31
July 2024
Ricardo plc:
Trading
Update
Ricardo plc ("Ricardo"), a global
strategic environmental and engineering consulting company,
providing expertise at the intersection of transport, energy, and
climate agendas, today announces its pre-close trading update for
the financial year ended 30 June 2024, ahead of its full year
results, scheduled for 11 September 2024.
The results in this trading update
are subject to audit.
Guidance reaffirmed for full
year 23/24
For the year ended 30 June 2024,
Ricardo has continued to trade in line with the Board's
expectations and expects to deliver underlying profit before tax in
line with its previous full year guidance.
FY23/24 saw a strong recovery in
profit in the second half, with improved operational efficiencies
following the consolidation of the functional teams. Revenue was up
by 7% (9% on a constant currency basis). Order intake for the Group
was approximately £495 million, down 5% on the prior year (3% on a
constant currency basis). This primarily reflects the new programme
wins in the prior year in Performance Products and the timing of
large orders in Automotive & Industrial.
Ricardo enters the new financial
year with a robust order book and solid pipeline visibility. Net
debt at 30 June 2024 was £59.6 million, including the £13.6 million
cash outflow for the earn out payments relating to the acquisitions
of E3M and Aither, both of which performed at maximum potential
following their successful integrations into the Group.
Good sales momentum across all business
units
·
Energy and Environment continued to show good
momentum across its practices except for its water advisory
services, where performance was tempered by project disruptions in
end markets.
·
Rail continues to deliver positive growth momentum
and has executed consistently against its order book.
·
Automotive and Industrial delivered strong profit
growth in the second half in both its Emerging and Established
businesses. Whilst the order book was marginally lower than June
2023, the amount deliverable within 12 months remains consistent
with the prior year, and revenue confidence for next year is
boosted by improved pipeline visibility.
·
Performance Products delivered strong profit in
the second half, benefitting from a ramp to complete customer
transmission projects. We expect growth to moderate in FY24/25
following the completion of a couple of large
programmes.
·
Defense has continued to deliver in the second
half of FY23/24 at a similarly strong level to that seen in the
first half, driven by strong order delivery of the
Antilock Brake System Electronic Stability Control
(ABS/ESC) programme, which is expected to complete in September
2027.
Strong cash generation
As a result of the Group's
persistent and rigorous focus on working capital management, cash
generation for the full year continues to deliver strong returns
delivering unaudited net debt of £59.6 million. This includes £13.6
million for the earn out payments relating to the acquisitions of
E3M and Aither, and £5.4 million for costs incurred in accelerating
our functional operating model announced at the half
year."
Graham Ritchie, Chief Executive Officer,
commented:
"We are pleased with our continued
progress in the second half of FY23/24, trading in line with the
Board's expectations for the full year. At the same time, we are
accelerating our strategic execution by delivering the aligned
functional operating model and improving our visible pipeline for
future revenue growth. We enter the new year with a solid order
book as we continue to focus on delivering long-term and
sustainable growth."
FY23/24 results
Ricardo will publish its results for
the year ending 30 June 2024 on Wednesday, 11 September
2024.
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
Enquiries:
Judith Cottrell | Natasha
Perfect
Ricardo plc
Tel 01273 455 611
investors@ricardo.com
Elisabeth Cowell | Ian
Silvera
SECNewgate
Tel 020 757 6882
ricardo@secnewgate.co.uk