Ricardo annual results for the year ended 30 June 2022

Ricardo annual results for the year ended 30 June 2022
14 September 2022

Ricardo plc
Report for the year ended 30 June 2022 (“FY 2021/22”)

Strong order intake, up 23% on FY 2020/21, and underlying operating cash conversion of 112%



  • A good set of results for the year , with trading in line with management's expectations and underlying(1) profit before tax up46%
  • Strong growth in order intake (up 23%) – driven by accelerating environmental trends and key programmes
  • Improvement in all key metrics – rebound in Automotive and Industrial (A&I) and continued growth in Energy and Environment (EE)
  • Net debt(5) reduced to £35m, creating opportunities to invest for growth
  • Acquisition of Inside Infrastructure (March 2022) and disposal of Ricardo Software (after year-end), supporting portfolio shift to environmental and energy transition solutions
  • Bank facility refinance completed after year-end, providing committed funding through to July 2026
  • Final dividend of 7.49p per share (total dividend: 10.40p) declared
    Continuing Total Total Total Growth/(decline)%
    2022 2022 2021
Order intake £m 425.3 432.2 352.0 22.8
Order book £m 340.0 343.6 293.5 17.1
Revenue £m 380.2 387.3 351.8 10.1
- Operating profit margin % 7.4 7.8 6.5 1.3pp
- Profit before tax £m 24.2 26.3 18.0 46.1
- Basic earnings per share(3) p 28.5 31.2 22.4 39.3
- Operating profit margin % 4.3 4.4 2.4 2.0pp
- Profit before tax £m 12.4 13.2 3.9 238.5
- Basic earnings per share(3) p 13.2 13.8 2.9 375.9
Underlying(1) cash conversion(4) %   112.1 87.0 25.1pp
Cash conversion(4) %   118.5 93.8 24.7pp
Net debt(5) £m   35.4 46.9 (24.5)
Dividend per share (paid and proposed) p   10.40 6.86 51.60
Headcount(6) no.   3,017 2,901 4.0
Continuing operations exclude the results of Ricardo Software, which was sold on 1 August 2022.
References are defined in the glossary of terms below.

Commenting on the results, Graham Ritchie, Chief Executive Officer, said:
“We continue to see strong momentum in our priority markets, underpinned by environmental and energy transition trends. The macroeconomic outlook around the world is challenging.  Nevertheless, as we enter FY 2022/23 with a strong order book, a number of high-value contracts and actions already taken to improve our global operating model and cost base in A&I,  I am confident that we are well prepared to deliver our expectations despite the uncertainty in the short-term.  In addition, we are well positioned to deliver sustainable growth through the shift in our service portfolio, aligned to the megatrends, in the longer term.’’

About Ricardo plc
Ricardo plc is a world-class environmental, engineering and strategic consulting company listed on the London Stock Exchange. With over 100 years of engineering excellence, we provide exceptional levels of expertise in delivering leading edge and innovative cross sector sustainable products and solutions, helping our global customers increase efficiencies, achieve growth and create a cleaner and safer future. Our mission is clear – to create a safe and sustainable world.

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Further enquiries:
Ricardo plc    
Ian Gibson, Chief Financial Officer Tel: 01273 455611
Natasha Perfect, Group Marketing and Communications Website: www.ricardo.com
SEC Newgate Tel: 020 7680 6882
Elisabeth Cowell / Ian Silvera / Isabelle Smurfit E-mail: [email protected]
Cautionary Statement
Note: Certain statements in this press release are forward-looking. Although these forward-looking statements are made in good faith based on the information available to the Directors at the time of their approval of the press release, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise