Ricardo plc - Preliminary results for the full year ended 30 June 2018

Ricardo plc - Preliminary results for the full year ended 30 June 2018
13 September 2018

 

Ricardo plc - Preliminary results for the full year ended 30 June 2018

HIGHLIGHTS

  • Record order intake at £413m, up £47m on FY 2016/17;

  • Record year-end order book at £288m, up £40m on June 2017;

  • Revenue up 8% to £380.0m;

  • Underlying PBT up 2% to £39.0m on FY 2016/17;

  • Strong performance in Asia and electric vehicle order intake, with a good mix of orders across our market sectors;

  • Acquisition of Control Point to enhance US defence business;

  • Disposals of Chicago and Southern Germany engine test facilities, to balance asset mix with the trend towards electrification;

  • Order flow disruption in the second half and the close out of some challenging projects impacted performance in our UK Automotive business. Changes made and swiftly addressed;

  • Strong working capital management has reduced net debt to £26.1m from £37.9m at June 2017 (after £6m acquisition of Control Point); and

  • Outlook is positive with a good pipeline – dividend increased by 6% to 20.46p from 19.30p.

 

 

 

% Change

 

FY 2017/18

FY 2016/17

Reported

Organic(3)

Order intake (£m)

413

366

+13

+10

Order book (£m)

288

248

+16

+14

Revenue (£m)

380.0

352.1

+8

+5

 

 

 

 

 

Underlying(1)

 

 

 

 

Profit before tax (£m)

39.0

38.3

+2

-1

Basic earnings per share(2) (p)

57.3

55.7

+3

+1

 

 

 

 

 

Statutory

 

 

 

 

Profit before tax (£m)

28.5

32.2

-11

-14

Basic earnings per share (p)

35.2

46.8

-25

-27

 

 

 

 

 

Dividend per share (p)

20.46

19.30

+6

n/a

Net debt (£m)

(26.1)

(37.9)

+31

n/a

(1) Underlying measures exclude the impact on statutory measures of specific adjusting items, comprised of amortisation of acquired intangible assets of £4.3m (2017: £4.0m), acquisition-related expenditure of £1.4m (2017: £1.7m) and reorganisation costs of £4.8m (2017: £0.4m). Underlying measures are considered to provide a more useful indication of underlying performance and trends over time.
(2) In the current year, underlying earnings also exclude the impact on statutory earnings of specific adjusting items for non-recurring tax charges of £2.2m, comprised of the derecognition of net deferred tax assets in Germany as a result of reorganisation activities during the year.
(3) Excludes the performance of acquisitions (Control Point Corporation).

Commenting on the results, Dave Shemmans, Chief Executive Officer said:
“In this financial year, Ricardo saw solid revenue growth and an increase in the order book to record year-end levels. We also successfully acquired and integrated Control Point Corporation. Our global presence and strategy of sector diversification helped the business to mitigate the continued impact of uncertainty in the UK market. Our growing order intake, particularly in Asia, reflects our clients’ continued demand for our high-quality products and services.

“Our test facilities in Chicago and Southern Germany were sold during the year to ensure we continue to move with the trend towards electrification. Actions were taken in our UK Automotive business to respond to issues relating to a disrupted flow of orders in the second half of the year and a small number of challenging projects relating to the new WLTP emissions legislation.

“We enter the new financial year with a more agile business and a confident and positive outlook. Ricardo’s global capabilities and presence in a number of growing markets, together with its strong order book, all provide a solid foundation for continued growth.”


[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 Sibree / Ian Silvera / Imogen Humphreys
Tel: 020 7680 6550
E-mail: ricardo@newgatecomms.com