TIDMRCDO
RNS Number : 6142H
Ricardo PLC
01 August 2023
1 August 2023
Ricardo plc: Trading update
Ricardo plc releases its pre-close trading update for the
financial year ended 30 June 2023, ahead of its full year's results
presentation, scheduled for 13 September 2023.
The results in this trading update are subject to audit.
Ricardo expects to report full-year results trading in line with
expectations
In the year ended 30 June 2023, Ricardo has continued to trade
in line with the Board's expectations delivering a strong full-year
performance with growth in orders, revenue and underlying operating
profit compared to the prior year. The robust performance reflects
the strong order intake in the period, with orders of c.GBP520m and
17% revenue growth (13% on a constant currency basis ). All figures
are on a continuing operations basis.
We continue to progress our portfolio transition. Our
Environmental and Energy Transition portfolio, which is expected to
deliver higher growth and margin over the long term, has performed
well, delivering double-digit revenue growth and strong margin
accretion. As reported in our half-year results, our Established
Mobility portfolio has continued to deliver order and revenue
growth. However, underlying operating profit has declined
year-on-year as a result of the performance of our Established
Automotive and Industrial business.
Environmental and Energy Transition portfolio
-- Energy & Environment continues to see significant demand
across its growth solutions, with strong order, revenue, and margin
growth.
-- In Rail, revenue and profit are down year-on-year, as
expected, because of the timings of several large contracts that
came to an end in FY21/22. However, the good order backlog and
strong pipeline creates confidence that Rail can return to revenue
growth in FY23/24.
-- Emerging Automotive & Industrial delivered good revenue
and profit growth in the year. Looking forward, reflecting the
timing of automotive energy-transition programmes, we expect
short-term fluctuations in order intake.
Established Mobility portfolio
-- Strong growth in orders, revenue and profit in our Defense
business continues, as it ramps up the volume of its ABS supply and
accelerates its orders for services
-- Performance Products delivered good order and revenue growth,
despite volume challenges within a key contract.
-- Established Automotive & Industrial revenues and profit
declined, which resulted in the structural changes announced in the
first half. These were implemented in H2 22/23, and we expect
performance to improve in FY23/24.
Financial resilience
At 30 June 2023, net debt was GBP62m compared to GBP35m at 30
June 2022, which is in line with the Board's expectations following
the acquisitions of both E3-Modelling and Aither Pty Ltd, earlier
in the year. Given the increase in base rates over recent months,
we expect finance charges to be higher in FY23/24.
Board succession
As previously announced, Judith Cottrell joined Ricardo on 1
July 2023 and will take over from Ian Gibson as Chief Financial
Officer during September 2023
Graham Ritchie, Chief Executive Officer, commented :
"In May 2023, we communicated the progress that we are making
towards delivering our strategy and accelerating growth to become a
global consultancy leader in environmental and energy transitions.
Throughout FY22/23, we have continued to transform our portfolio
mix to deliver long-term profitable growth and consistently perform
in line with our expectations.
"I look forward to providing you with more details when sharing
our preliminary results on 13 September 2023."
About Ricardo plc
Ricardo plc is a global strategic, environmental, and
engineering consulting company, listed on the London Stock
Exchange. With over 100 years of engineering excellence and close
to 3,000 employees in more than 20 countries, we provide
exceptional levels of expertise in delivering innovative
cross-sector sustainable outcomes to support energy transition and
scarce resources, environmental services together with safe and
smart mobility. Our global team of consultants, environmental
specialists, engineers and scientists support our customers to
solve the most complex and dynamic challenges to help achieve a
safe and sustainable world. Visit www.ricardo.com
Enquiries:
Natasha Perfect
Ricardo plc
Tel 01273 455 611
Natasha.perfect@ricardo.com
Elisabeth Cowell
SECNewgate
Tel 020 757 6882
ricardo @secnewgate.co.uk
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