Ricardo plc Preliminary results for the full year ended 30 June 2021

Ricardo plc Preliminary results for the full year ended 30 June 2021
15 September 2021

The following amendment has been made to the Preliminary Results announcement released on 15 September 2021 at 07:00 under RNS No 7740L.
The final dividend of 5.11p per share will be paid on 25 November 2021 to holders of ordinary shares on the Company’s register of members on 5 November 2021. The record date was previously incorrectly listed as 4 November 2021.
All other details remain unchanged. 


HIGHLIGHTS

  • The business continues to grow and we are well positioned as markets recover post COVID-19.

  • Positive momentum, with H2 underlying profit before tax of £13.0m, compared to £5.0m in H1.

  • All segments, except Automotive & Industrial, increased profitability on the prior year:
    Energy & Environment and Rail performed strongly, with increased margin
    Defense(1) ABS Retro-Fit deliveries commenced​
    In Performance Products, transmission volumes increased year-on-year and engine volumes increased steadily throughout the year
    Within Automotive & Industrial, performance improved in the US and China and declined in EMEA

  • Equity fund raise, together with a strong working capital performance, enabled the Group to reduce net debt by 36% to £46.9m.
  • ​Final dividend of 5.11p per share (total dividend of 6.86p per share) declared
        2021 2020 Growth/
(decline) %
Order intake     £m 352.1 368.7 (4.5) 
Order book     £m 293.5 314.0 (6.5) 
Revenue     £m 351.8 352.0 (0.1) 
Underlying (2)            
- Operating profit margin     % 6.5 5.7 0.8 pp
- Profit before tax     £m 18.0 15.6 15.4  
- Basic earnings per share(3)     p 22.4 21.3 5.2  
Statutory            
- Operating profit/(loss) margin   % 2.4 (0.3) 2.7 pp
- Profit/(loss) before tax     £m 3.9 (5.3) 173.6  
- Basic earnings/(loss) per share   p 2.9 (12.2) 123.8  
Underlying(2) cash conversion(4)     % 87.0 102.1 (15.1 pp)
Cash conversion(4)     % 93.8 112.9 (19.1 pp)
Net debt(5)     £m 46.9 73.4 (36.1) 
Dividend per share (paid and proposed)     p 6.86 6.24 10 
Headcount(6)     no. 2,901 3,003 (3.4) 

References in superscript are defined in the glossary of terms

Commenting on the results, Dave Shemmans, Chief Executive Officer, said:

‘’Over the last eight years we have significantly diversified our portfolio and, by so doing, Ricardo is now positioned as a world-class environmental, engineering and strategic consultancy offering expertise that is supporting global green agendas. Although we remain in an uncertain world, the resilience of our operating model and the focused delivery of our strategic priorities has ensured that we have steered back onto a course that will guide our business to a position of strength. This has been made possible thanks to the amazing team that, throughout the pandemic, has demonstrated its agility, dedication and ingenuity in continuing to provide excellent service to our customers and remaining committed to achieving our ambition: to create a world fit for the future. 

I would like to sign off my final review here at Ricardo with a warm and heartfelt note of thanks. I have had the pleasure of leading Ricardo for the past sixteen years and would like to thank all our customers, colleagues and shareholders for their support during my tenure. This is truly a special Group, with some amazingly talented people, in which I have enjoyed every moment. I wish Ricardo all the very best.’’

About Ricardo plc
Ricardo plc is a world-class environmental, engineering and strategic consulting company listed on the London Stock exchange. We shape the markets in which we operate through the delivery of solutions built on technological and sustainable innovation. With more than 100 years of engineering excellence, we provide exceptional levels of technical expertise to deliver leading-edge innovative and sustainable cross-sector solutions designed to solve our clients’ most complex strategic and operational challenges. Our vision is clear – to create a world fit for the future.For more information visit www.ricardo.com.

Analyst and investor presentation
The analyst and investor presentation of the Group’s preliminary results for the year ended 30 June 2021 will be available online from Wednesday 15 September 2021 at https://ricardo.com/investors/financial-reporting/results-presentations. There will also be a presentation for analysts and investors at 9:30am on Wednesday 15 September 2021.

Further enquiries:
 
Ricardo plc
   
 Ian Gibson, Chief Financial Officer Tel: 01273 455611
Natasha Perfect, Group Marketing and Communications Website: www.ricardo.com
     
SEC Newgate Tel: 020 7680 6882
Elisabeth Cowell / Isabelle Smurfit E-mail: [email protected]
Cautionary Statement
Note: Certain statements in this press release are forward-looking. Although these forward-looking statements are made in good faith based on the information available to the Directors at the time of their approval of the press release, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Glossary of terms 
1. Defense refers to our US-based segment which provides services to the US defence market 
2. Underlying measures exclude the impact on statutory measures of specific adjusting items as set out in Note 4. Underlying measures are considered to provide a more useful indication of underlying performance and trends over time.
3. Underlying earnings exclude a tax credit to statutory earnings of £2.6m (FY 2018/20: £3.0m) in relation to the specific adjusting items in Note 4. 
4. Cash conversion is a key measure of the Group’s cash generation and measures the conversion of profit into cash. This is the reported cash generated from operations (defined as operating cash flow, less movements in net working capital and defined benefit pension deficit contributions) divided by earnings before interest, tax, depreciation, impairment and amortisation (‘EBITDA’), expressed as a percentage

5. Net debt, as set out in Note 9, is defined as current and non-current borrowings less cash and cash equivalents, including hire purchase agreements, but excluding any impact of IFRS 16 lease liabilities. Management believes this definition is the most appropriate for monitoring the indebtedness of the Group and is consistent with the treatment in the Group’s banking agreements
6.Headcount is calculated as the number of employees on the payroll at the reporting date and includes subcontractors on a full-time equivalent basis
7. Constant current growth/decline is calculated by translating the result for the current year using foreign currency exchange rates applicable to the prior year. This provides an indication of the growth/decline of the business, excluding the impact of foreign exchange. 


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