Ricardo plc - Interim results for the six months ended 31 December 2017

Ricardo plc - Interim results for the six months ended 31 December 2017
28 February 2018

HIGHLIGHTS

  • Record order book at £302m, up £54m on June 2017:
  • Strong order intake at £238m, up £57m on HY 2016/17;
  • Revenue up 9% to £183m and underlying PBT up 8% to £16.3m on HY 2016/17;
  • Net debt reduced from £38m at June 2017 to £32m (after £6m acquisition of Control Point);
  • A good mix of orders in terms of geography, sector and size with increased orders in hybrid/EV activity at 24% of total Group order intake, up from 17% in FY 2016/17;
  • Acquisition of Control Point completed in the period and performing well; and
  • Outlook remains positive with a good pipeline.

 

 

 

% Change

 

HY 2017/18

HY 2016/17

Reported

Organic(3)

Order book (£m)

302

244

+24

+22

Order intake (£m)

238

181

+31

+28

Revenue (£m)

182.6

167.0

+9

+7

 

 

 

 

 

Underlying(1)

 

 

 

 

Profit before tax (£m)

16.3

15.1

+8

+6

Basic earnings per share(2) (p)

23.6

22.3

+6

+3

 

 

 

 

 

Statutory

 

 

 

 

Profit before tax (£m)

12.5

12.1

+3

+1

Basic earnings per share (p)

16.7

17.7

-6

-9

 

 

 

 

 

Dividend per share (p)

5.75

5.42

+6

n/a

Net debt

(31.5)

(47.0)

+33

n/a

(1) Excludes specific adjusting items which have impacted reported profit before tax, comprised of amortisation of acquired intangible assets of £2.2m (HY 2016/17: £1.9m), acquisition-related expenditure of £0.5m (HY 2016/17: £1.1m) and reorganisation costs of £1.1m (HY 2016/17: £Nil).
(2) In the current period, a non-recurring tax charge of £1.1m arising from the reduction in the US federal tax rate was also classified as a specific adjusting item, which has impacted reported profit after tax.
(3) Excludes the performance of acquisitions (Control Point Corporation).

Commenting on the results, Dave Shemmans, Chief Executive Officer, said: “Our growth strategy remains focused on the strategic diversification of our business through organic and acquisitive actions. We continue to develop the technology and innovative solutions that will help our clients meet the global challenges of urbanisation, energy security and efficiency, increasing environmental and emissions regulations and rising demand for natural resources.

“We have traded in line with our expectations and I am pleased to see the strong order intake resulting in an increase of 31% compared to the first half of the prior year. We have also seen a good spread of orders across both our Technical Consulting and Performance Products businesses. This provides a good base as we head into our traditionally more profitable second half of the year. I am also particularly pleased with our cash performance in the period, driven by a strong working capital focus. We look forward to continued progress in the second half of the year.”


[A full copy of this announcement - and the accompanying presentation - can be downloaded from the press and media documentation links provided on this page.]


Further enquiries:
Ricardo plc
Dave Shemmans, Chief Executive Officer / Ian Gibson, Chief Financial Officer
Tel: 01273 455611

Newgate Communications LLP
Adam Lloyd / Zoë Pocock / Ed Treadwell
Tel: 020 7680 6550
E-mail: ricardo@newgatecomms.com