Preliminary results for the full year ended 30 June 2009

Preliminary results for the full year ended 30 June 2009
21 September 2009

Ricardo plc is a market leading engineering, management, automotive and transportation consultancy, employing over 1600 people worldwide. The company has centres in the UK, USA, Germany, Czech Republic, India, Japan and China and a global client list including the world’s major automotive OEMs, Tier 1 suppliers to OEMs, energy companies and governments.

 
Highlights

The results from continuing operations are now the primary performance measure for financial results used by Ricardo plc. Profit before tax for continuing operations was £15.7m (2008: £15.5m). The German exhaust business was held for sale at 30 June 2009 and has been reported under discontinued operations. It incurred a loss before tax of £2.8m (before writing down assets held for sale by £3.8m to anticipated net sale proceeds). Therefore for continuing and discontinued operations combined, the profit before tax and writing down assets held for sale was £12.9m (2008: £14.7m).

Continuing operations:

• Order book level at £97m (June 2008: £97m)

• Revenue of £178.8m (June 2008: £181.9m)

• Profit before tax up 1% to £15.7m (June 2008: £15.5m)

• Tax charge of 6% (2008: 15%) due to further R&D tax credits

• Basic earnings per share up 13% to 28.8p (June 2008: 25.5p)

• Net debt at £3.5m (June 2008: £0.3m); minimal gearing maintained

• Full year dividend of 10.7p (June 2008: 10.6p)

• A strong result driven by our strong diversification strategy, headcount reduction and balance sheet management, despite a year of unprecedented falls in demand in global automotive markets.

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

“Despite turbulence in the global markets we serve, the business has performed well in the last financial year, thanks to our diversification strategy, investment in facilities and research and development, a strong order book, robust working capital management and our resilient and talented team of employees. Whilst many of our customers are still cautious and we expect the economic environment to remain a challenge for some time, our key business drivers of tightening emissions and CO2 legislation remain and we are pressing ahead with our strategy to increase customer and sector spread supported by investment in research, facilities and our people.

Against this backdrop, we expect trading in the first half of the current year to be substantially lower than the previous first half. However, due to the size and profile of our order book and an anticipated market recovery we expect a stronger second half. With the strength of our balance sheet we remain committed to our strategy and are confident for the future.”

Ends

 

 
Further enquiries:

Ricardo plc  
Dave Shemmans, Chief Executive 
Paula Bell, Group Finance Director  
Website: www.ricardo.com
Tel:  01273 455611
 
  
Kreab Gavin Anderson 
Fergus Wylie   
Robert Speed   
Michael Turner  
Tel:  020 7074 1800