For continuing operations:
- Order book up 16% at £117m, following strong intake (30 June 2010: £101m; 31 December 2009: £99m)
- Revenue up 11% at £90.2m (31 December 2009: £81.0m)
- Profit before tax of £5.0m, up 32% (six months ended 31 December 2009: £3.8m)
- Low gearing maintained. Net debt £7.5m (30 June 2010: £7.8m; 31 December 2009: £6.7m)
- Basic earnings per share 9.4p (31 December 2009: 6.3p)
- Increased interim dividend of 3.4p per share (31 December 2009: 3.2p per share)
- The market outlook is more positive both in respect of the return of passenger car customers and opportunities for diversification
- The Board remains confident of further progress for the full year
Commenting on the results, Dave Shemmans, Chief Executive said: “Overall, this has been a pleasing half year performance with positive signs of recovery in the passenger car market and further progress made with our diversification strategy. Strong order intake in the past six months, up 28% on the same period in the prior year, has yielded an order book at a healthy £117m, up 16% compared with 30 June 2010, with a good pipeline of prospects. The balance sheet is strong, the operating margins have improved, and profit before tax on continuing operations is up 32% on prior year despite cost overruns on a large engineering design programme, which has now been completed.
"Orders received in the period reflected an improving confidence in the market and a return of multi-year outsourced development programmes from clients. We secured key projects in the automotive and off-highway sectors whilst our defence business benefited from the formal award of the contract to Ricardo by Force Protection Europe for the set up and assembly of 200 UK Ministry of Defence Foxhound vehicles (formerly known as Ocelot), with production commencing in July 2011.
"Overall, the market outlook is more positive with the return of passenger car customers and opportunities for diversification. We are pleased with both the results for the first half and the growth of the order book and we are confident of further progress for the full year. Winning multi-year engineering programmes, commencing assembly on the supercar engine, and securing a significant defence programme, provide longer term business visibility.”
End of summary
A full version of the statement issued today by Ricardo plc can be downloaded from the link at the top right of this page.
Dave Shemmans, Chief Executive
Paula Bell, Group Finance Director
Kreab Gavin Anderson
Tel: 020 7074 1800