REG - Ricardo PLC - Trading Update

RicardoAnnouncement

31/07/2024 07:00

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RNS Number : 4464Y  Ricardo PLC  31 July 2024

 

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
(http://www.ricardo.com/)

 

Enquiries:

 

Judith Cottrell | Natasha Perfect

Ricardo plc

Tel 01273 455 611

investors@ricardo.com (mailto:investors@ricardo.com)

 

Elisabeth Cowell | Ian Silvera

SECNewgate

Tel 020 757 6882

ricardo (mailto:ricardo@secnewgate.co.uk) @secnewgate.co.uk
(mailto:ricardo@secnewgate.co.uk)

 

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