Follow Ricardo plc for regular updates06 March 2024
Interim results for the half year ended 31 December 2023
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HIGHLIGHTS
· Record order book of £477m (HY 2022/23: £404m), up 18% on a constant currency basis
· Strong growth and margin accretion in Energy and Environment (EE), Rail and Defense, driving Group revenue growth of 9% (HY2022/23: 12% on a constant-currency basis)
· Recent acquisitions, E3-Modelling and Aither Pty Ltd, performing well and accelerating growth
· Group operating profit impacted by delayed customer orders in Automotive and Industrial (A&I) in H1
· Operating profit margin to improve in H2 from accelerating our operating model transformation
· Excellent cash conversion of 130% (HY 2022/23: 97%)
· Interim dividend of 3.8p up 13%
· With a strong order book, good pipeline visibility and improving margins the Board remain confident in delivering FY 23/24 profit before tax market consensus(7)
|
Growth/ (decline)% |
Growth/ (decline)% |
|||||
|
Reported |
At constant currency |
|||||
|
|
|
HY 2023/24 |
HY 2022/23 |
HY 2022/23 |
||
|
Continuing operations |
||||||
|
Order intake |
£m |
314.3 |
292.8 |
7.3 |
286.0 |
9.9 |
|
Order book |
£m |
477.2 |
414.4 |
15.2 |
404.3 |
18.0 |
|
Revenue |
£m |
224.2 |
212.7 |
5.4 |
206.1 |
8.8 |
|
Underlying(1) |
||||||
|
- Operating profit |
£m |
12.0 |
12.5 |
(4.0) |
12.0 |
- |
|
- Operating profit margin |
% |
5.4 |
5.9 |
(0.5pp) |
5.8 |
(0.4pp) |
|
- Profit before tax |
£m |
7.9 |
9.9 |
(20.2) |
9.3 |
(15.1) |
|
Statutory |
||||||
|
- Operating profit/(loss) |
£m |
2.0 |
(9.9) |
120.2 |
(10.1) |
119.8 |
|
- Operating profit margin |
% |
0.9 |
(4.7) |
5.6pp |
(4.9) |
5.8pp |
|
- Loss before tax |
£m |
(2.1) |
(12.5) |
(83.2) |
(12.8) |
(83.6) |
|
Total |
||||||
|
Underlying(1) cash conversion(3) |
% |
129.7 |
97.1 |
32.6pp |
n/a |
n/a |
|
Cash conversion(3) |
% |
181.2 |
59.7 |
121.5pp |
n/a |
n/a |
|
Basic underlying earnings per share(1&2) |
p |
9.2 |
12.2 |
(24.6) |
11.1 |
(17.1) |
|
Basic reported loss per share |
p |
(5.5) |
(13.2) |
(58.3) |
(13.8) |
(60.1) |
|
Closing |
||||||
|
Net debt(4) |
£m |
63.3 |
31.4 |
101.6 |
n/a |
n/a |
|
Headcount(5) |
no. |
2,978 |
2,873 |
3.7 |
n/a |
n/a |
|
Dividend proposed per share |
p |
3.80 |
3.35 |
13.43 |
n/a |
n/a |
|
|
|
|
|
|
|
|
References are defined in the glossary of terms below.
Commenting on the results, Graham Ritchie, Chief Executive Officer, said:
"We delivered good revenue growth in H1, owing to strong sales momentum in our Energy and Environment, Rail and Defense businesses. This is despite delays in contract orders within Automotive and Industrial, which impacted the Group's H1 profitability.
We continue to make progress in line with our strategic ambition and have recently accelerated our transformation to create a sustainable business model that will support Ricardo's future business mix. By centralising our enabling functions and streamlining our operations, we can drive improved performance across the business with benefits realised both in the near and long-term.
Looking ahead, we remain on track to deliver our full-year market consensus. Our record order book and the strong sales momentum across our growth solutions underpin our confidence in achieving this. In relation to our Automotive and Industrial business, with the actions we have taken on portfolio and market focus, and further refinement of our flexible resourcing model, we expect improved profitability in H2 and the business to return to sustainable growth."
Analyst and investor presentation
There will be a presentation for analysts relating to the Group’s interim results for the six months ended 31 December 2023 at 9:30am on Wednesday 6 March 2024. A recording of the presentation will be available online to all investors from Wednesday 6 March 2024 at https://ricardo.com/investors/financial-reporting/results-presentations.
Further enquiries:
| Ricardo plc |
Tel: 01273 455611 |
| Natasha Perfect | |
|
SEC Newgate |
Tel: 020 7680 6882 |
|
Elisabeth Cowell / Ian Silvera |
Email: ricardo@secnewgate.co.uk |
Disclaimer statement
This press release contains certain statements that are forward-looking. They appear in a number of places throughout this press release and include statements regarding the intentions, beliefs and/or current expectations of Ricardo plc (the “Company”).
By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this presentation and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. Nothing in this press release should be construed as a profit forecast.
The Company and its Directors accept no liability to third parties.
