Ricardo plc - Preliminary results for the full year ended 30 June 2017
- Record order book at £248m, strong order intake at £366m and revenue up 6% to £352m;
- Resilient performance across the business with underlying profit before tax at £38.3m in line with expectations, despite disrupted flow of orders in Automotive;
- Good performance from Energy & Environment, Rail and Performance Products;
- Good order flow in Automotive engines and hybrid/EV – with the latter 17% of Group order intake;
- Underlying(1) basic earnings per share at 55.7p;
- Net debt of £37.9m after £4.4m of net acquisition-related payments;
- Full year dividend up 7% to 19.3p per share;
- Acquisition of Exnovo completed in the year, with Control Point completed post year-end; and
- Outlook remains positive, good platform for growth.
Basic earnings per share (p)
Basic earnings per share (p)
(1) Excludes specific adjusting items, which comprise amortisation of acquired intangible assets of £4.0m (2016: £3.4m), net acquisition-related expenditure of £1.7m (2016: £2.8m) and reorganisation costs of £0.4m (2016: £Nil). In the prior year, non-recurring income of £1.5m for claims under the Research & Development Expenditure Credit (‘RDEC’) scheme was also included.
Commenting on the results, Dave Shemmans, Chief Executive Officer said:
“I am pleased to report another solid year of progress for Ricardo. Based on the foundation of a diversified strategy and an increasingly balanced business, we have navigated an uncertain and volatile year, providing a satisfactory result overall.
“Our Rail and Environmental consultancies delivered strong results at both revenue and operating profit levels, as did our Performance Products business. Within Performance Products we were pleased to deliver our 10,000th engine to McLaren and to be selected to design and produce an advanced hypercar transmission for Aston Martin.
“Our Automotive business in Europe experienced a disrupted year of order flows which led to a less efficient business operation, but the year ended with strong order intake in both the engines and electrification businesses and we are pleased to see a return to more normal order intake patterns. With the US business underperforming, a changing customer dynamic and the increased emphasis on electrification, we are repositioning the US business to enhance our electrified and autonomous vehicle service offering, led from California where many new entrants are based.
“We enter the new financial year with a well balanced business and welcome the in-year acquisition of Exnovo and the recent Control Point Corporation acquisition post year-end. We continue to address and adjust to the changes in our individual markets to ensure we both mitigate risk and capitalise on the significant global opportunities which lie ahead. These opportunities, together with our progress, our people and our technology, in addition to our record order book, provide a good platform for further growth in the years to come.”
[A full copy of this announcement - and the accompanying presentation - can be downloaded from the press and media documentation links provided on this page.]
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