Ricardo plc (‘Ricardo’ or ‘the Company’), a market leading engineering and automotive consultancy, is today providing a trading update for the period to the end of June 2012. Ricardo will announce its full year results for the twelve month period ending 30 June 2012 on 20 September 2012.
Orders continue to flow from a wide range of countries and across a broad sector base. Recent new orders include a large multi year defence research programme in the US and further automotive work from in particular Asia. The order book remains strong at over £100m, tracking at a similar level to the end of the last financial year.
We expect revenue levels to be similar to the prior financial year and profit performance to be at the upper end of analyst expectations showing solid growth on the previous financial year.
We continue to manage our Technical Consulting business as a global portfolio, with standard processes and systems, passing work between our facilities in order to maintain flexibility and improve utilisation. The UK operations have been particularly busy and will deliver a good performance. The US performance continues at a similar level as in the first half of the financial year, with a large defence order lifting their order book at the end of June. Current market challenges remain in Germany, where test bed activity is at a reduced level and order placement continues to be slow. We have reduced the cost base in our strategic consulting activities which has returned to good operating margin. Reflecting the relative size of the strategic consulting business, this will now be reported within the Technical Consulting segment going forward.
Our Performance Products segment continues to be busy with ongoing motorsport activity, supercar engine and transmission assembly and delivery of military vehicles.
The balance sheet remains strong with a net cash balance and ample bank facilities for further development of the business.
Dave Shemmans CEO commented:
“Despite an uncertain economic backdrop, we continue to secure and deliver business from a broad range of clients, sectors and geographies. Our multiyear programmes for both Technical Consulting and Performance Products together with our strategic relationships are delivering repeat business. Our strategy, strong order book and pipeline, as well as operational delivery strength continue to give us confidence of further progress in the coming year.”
Dave Shemmans, Chief Executive
Paula Bell, Group Finance Director
Tel: 01273 455611
Kreab Gavin Anderson
Tel: 0207 074 1800