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

Ricardo plc - Interim results for the six months ended 31 December 2018
28 February 2019
HIGHLIGHTS
 
  • Order intake good at £202m, compared to £238m in HY 2017/18;
  • Order book increased to £302m, up £7m on June 2018;
  • Revenue up 4% to £188m on HY 2017/18;
  • Underlying PBT up 1% to £15.3m on HY 2017/18;
  • Strong order intake in High-Performance Vehicles and Defence, with a well-diversified order mix overall;
  • Good performance in Rail, Energy & Environment, Defence, Performance Products and Software have fully offset weaknesses in our European and US Automotive businesses, demonstrating the importance of diversification across sectors and geographies;
  • Strong cash performance with neutral working capital and net debt at £27.5m, compared to £26.1m at June 2018;
  • Interim dividend increased by 4% to 6.00p from 5.75p; and
  • Acknowledging the uncertain economic climate, we remain positive due to a good order book and diverse pipeline, the recently signed long-term McLaren programme, and deliveries of ABS kits now underway.
      % Change
  HY 2018/19 HY 2017/18(3) Reported Organic(4)
Order intake (£m) 202 238 -15 n/a
Order book (£m) 302 308 -2 n/a
Revenue (£m) 188.1 181.4 +4 +2
         
Underlying(1)        
Profit before tax (£m) 15.3 15.1 +1 -
Basic earnings per share(2) (p) 22.1 21.7 +2 -
         
Statutory        
Profit before tax (£m) 10.3 11.3 -9 -10
Basic earnings per share (p) 14.6 14.8 -1 -4
         
Dividend per share (p) 6.00 5.75 +4 n/a
Net debt (£m) (27.5) (31.5) +13 n/a
(1) Underlying measures exclude the impact on statutory measures of specific adjusting items as set out in Note 3, comprised of amortisation of acquired intangible assets of £2.0m (HY 2017/18: £2.2m), acquisition-related expenditure of £0.5m (HY 2017/18: £0.5m), reorganisation costs of £1.3m (HY 2017/18: £1.1m), and the non-recurring impact of the equalisation of Guaranteed Minimum Pensions (‘GMPs’) of £1.2m
(HY 2017/18: £Nil). Underlying measures are considered to provide a more useful indication of underlying performance and trends over time.
(2) Underlying earnings also exclude a tax credit to statutory earnings of £1.0m (HY 2017/18: £0.1m) for the specific adjusting items in
Footnote 1 and as set out in Note 3.
(3) Comparative financial information has been restated for the transitional impact of adopting IFRS 15 Revenue from Contracts with Customers from 1 July 2018 and is presented on a like-for-like basis with HY 2018/19. The impact of the restatement is a reduction in revenue and profit before tax of £1.2m and earnings per share of 1.9p, as set out in Note 8, together with a £6m cumulative increase in order book.
(4) Includes the performance of acquisitions (Control Point Corporation) in HY 2017/18 on a like-for-like basis with HY 2018/19.

 

Commenting on the results, Dave Shemmans, Chief Executive Officer said:
“Our strategy of developing the business across a diverse mix of geographies, sectors and clients has delivered a good set of results and in line with our expectations. Good performance in Rail, Energy & Environment, Defence, Performance Products and Software has mitigated the impact of the ever-changing geopolitical and technological backdrop on our European and US Automotive businesses.

“Acknowledging the uncertain economic climate, we remain positive due to a good order book and diverse pipeline, the recently signed long-term McLaren programme, and deliveries of ABS kits now underway.”


Further enquiries:
Ricardo plc  
Dave Shemmans, Chief Executive Officer 
Ian Gibson, Chief Financial Officer 
Tel: 01273 455611
Website: 
www.ricardo.com


Newgate Communications LLP 
Adam Lloyd / Zoë Sibree / Ian Silvera / Imogen Humphreys 
Tel: 020 7680 6550

E-mail: ricardo@newgatecomms.com