Ricardo plc is today providing a trading update for the period 1 July 2015 to the date of this release. The results for the six month period ending 31 December 2015 will be announced on 26 February 2016.
We have seen a good start to the new financial year with strong order intake in the four months to the end of October of £113m, which is £43m higher than the same period last year. On a like-for-like basis, excluding the acquisitions of LR Rail, Cascade, Power Planning Associates and Vepro, order intake is up by £22m compared to the prior year. The total order book at the end of October was £206m compared to £132m at the same time last year.
Significant orders in the period include, within technical consulting a project for an electric bike and two passenger car transmission orders in the US, a multi-year Rail project for the Independent Validation and Verification of a transit railway in Asia, further passenger car orders in Europe and in Performance Products an increased level of orders for McLaren.
Ricardo Rail has performed in line with our expectations since the acquisition of Lloyd’s Register Rail on 1 July 2015 and the integration is progressing well. The final stage of the acquisition of the rail business is the completion of the joint venture in China which is expected to be finalised in the next few months for an agreed consideration of £1.9m as previously indicated.
In Performance Products, preparations are on track for the increase in volumes expected in the second half of the year in respect of the new engine supply contract for McLaren.
Overall, trading is in line with our expectations.
Dave Shemmans, Chief Executive Officer, commented:
“We have again seen a good start to the new financial year with strong order intake in the first four months, reflecting both organic growth as well as a pleasing contribution from our recent acquisitions, which helped to generate a very good order book at the end of October. I am particularly encouraged by our continued success in Asia, further passenger car wins in the UK and recent new orders in hybrid electric vehicles, transmissions and rail in the US. The Lloyds Register Rail acquisition is performing well and generating a number of joint opportunities with the rest of Ricardo. Overall, we remain confident of continued progress during the year.”
Dave Shemmans, Chief Executive Officer
Ian Gibson, Chief Financial Officer
Tel: 01273 455611
Fergus Wylie/Madeleine Palmstierna
Tel: 020 7680 6550
A full version of the Trading update issued today by Ricardo plc can be downloaded from the link at the top right of this page.