Ricardo plc is a global engineering and strategic, technical and environmental consultancy business with a value chain that includes the niche manufacture and assembly of high-performance products. We employ over 2,900 professional engineers, consultants, scientists and support staff to deliver class-leading and innovative products and services for the benefit of our customers, which include the world’s major transportation original equipment manufacturers and operators, supply chain organisations, energy companies, financial institutions and government agencies.
- Strong order book at £201m (30 June 2015: £140m);
- Revenue up 31% to £157.8m (31 December 2014: £120.5m);
- Underlying(1) PBT up 43% to £14.4m (31 December 2014: £10.1m);
- Organic(2) underlying revenue up 9% to £130.8m (31 December 2014: £120.5m);
- Organic(2) underlying PBT up 10% to £11.1m (31 December 2014: £10.1m);
- Underlying(1) basic earnings per share up 31% to 20.8p (31 December 2014: 15.9p);
- Net debt of £32.2m after £41.5m net acquisition expenditure (30 June 2015 net funds: £14.3m);
- Interim dividend up 9% to 5.07p per share (31 December 2014: 4.65p);
- Acquisitions of Lloyd’s Register Rail (‘LR Rail’) and Cascade completed in the period; and
- Outlook remains positive, strong platform for further growth.
(1) Includes income of £2.0m under the Research & Development Expenditure Credit (‘RDEC’) scheme in respect of the current period, but excludes specific adjusting items, which comprise amortisation of acquired intangible assets of £1.7m (31 December 2014: £0.6m), acquisition-related costs of £1.0m (31 December 2014: £0.5m) and non-recurring income of £1.5m for claims under RDEC in respect of prior years.
(2) Excludes the performance of acquisitions (LR Rail, Cascade, Vepro and PPA) of £1.8m, income of £2.0m in respect of the current period under the RDEC scheme and increased net interest payments on drawn loan facilities of £0.5m.
Commenting on the results, Dave Shemmans, Chief Executive Officer said:
“As Ricardo starts its second century, our growth strategy remains focused on the strategic diversification of our business and the development of innovation and technology that will help our clients meet the global challenges of urbanisation and climate change.
“We continue to win orders from across all geographies and market sectors in which we operate and we are pleased with our record order book of £201m. The Group has again delivered a strong operating performance, with a 31% increase in revenue and a 43% increase in underlying profit before tax. These increases have been driven by a mixture of organic and acquisition-related growth including the acquisitions of Lloyd’s Register Rail and Cascade. The underlying profit before tax also includes income of £2.0m as a result of the new Research and Development Expenditure Credit scheme adopted on 1 July 2015.
“We continue to trade in line with our expectations and remain confident of further progress in the full year.”
Dave Shemmans, Chief Executive Officer
Ian Gibson, Chief Financial Officer
Tel: 01273 455611
Steffan Williams/Madeleine Palmstierna
Tel: 020 7680 6550
A full version of this Interim Results announcement issued today by Ricardo plc, together with the interim results presentation, can be downloaded from the links at the top right of this page.