Despite a turbulent and challenging year with a backdrop of a weak passenger car market, Ricardo responded well by following its previously stated diversification strategy into new markets and developing a broader client base. Focused cost management mitigated the full effect of the expected decrease in revenue. Profit before tax for continuing operations was £10.8m (2009:£15.7m). As per the company’s previous communications, the non core German exhaust business, which was formally sold on 30th July 2010, has been reported under discontinued operations.
- Improved Q4 orders led to strong closing orderbook at £101m (June 2009: £97m)
- Revenue of £162.8m (June 2009: £178.8m)
- Operating profit of £12.6m (June 2009: £15.1m)
- Profit before tax £10.8m (June 2009: £15.7m)
- Strong balance sheet maintained - net debt at £7.8m (June 2009: £3.5m)
- Basic earnings per share 20.1p (June 2009: 28.8p)
- Full year dividend of 10.7p – maintained at the same level as last year
- Sale of non core exhaust business concluded 30 July 2010
- Positive outlook as markets continue to show signs of recovery
Commenting on the results, Dave Shemmans, Chief Executive Officer said: “Despite the continued global economic turbulence and the resulting continued absence of many of our traditional clients from our order intake, the business has performed well in the circumstances. We have maintained a strong balance sheet and grown our orderbook, and propose an unchanged dividend payment. We have continued to invest in world-class facilities and leading-edge research and have in place a targeted recruitment programme for recognised specialists to drive our sector strategy.
"We are now seeing signs of recovery from our traditional clients, with orders starting to be placed; however, we are continuing to run the business with high levels of control and vigilance to ensure that we exploit any recovery to the full, whilst at the same time managing any turbulence along the way. As a result of our diversification strategy, our clients now come from a broader range of sectors and we look forward to serving them for many years to come with a stream of repeat business.
"The key drivers of CO2 reduction and energy security remain and will return to centre stage when the economy is more fully recovered. Moreover, with many clients having restructured their operations, outsourcing can provide an effective way for them to both meet the demands of the forthcoming emissions legislation and return to more normalised product development cycles.
"With the global economic recovery appearing to be underway, Ricardo is well positioned with a good orderbook, a broad client base, a highly relevant technology portfolio and a strong balance sheet to exploit the opportunities that lie ahead. We remain committed to our strategy and are confident for the future.”
End of summary
A full version of the statement issued today by Ricardo plc can be downloaded from the link at the top right of this page.
Dave Shemmans, Chief Executive
Paula Bell, Group Finance Director
Tel: 01273 455611
Kreab Gavin Anderson
Tel: 020 7074 1800