Ricardo PLC Trading Update (0674C)
17 January 2018 - 6:00PM
UK Regulatory
TIDMRCDO
RNS Number : 0674C
Ricardo PLC
17 January 2018
17 January 2018
Ricardo plc
Trading Update
Ricardo plc ("Ricardo") is a global engineering and strategic,
technical and environmental consultancy business with a value chain
that includes the niche manufacture and assembly of
high-performance products. We employ over 3,000 professional
engineers, consultants, scientists and support staff to deliver
class-leading and innovative products and services for the benefit
of our customers, which include the world's major transportation
original equipment manufacturers and operators, supply chain
organisations, energy companies, financial institutions and
government agencies.
Ricardo is today providing a trading update ahead of its results
in respect of the half year ended 31 December 2017. Ricardo plans
to announce its Interim Results on 28 February 2018.
In the half year to 31 December 2017 order intake was strong, in
excess of GBP235m, which was more than GBP50m higher than the same
period last year and represents an organic growth of over 25%. The
order intake includes GBP7m in respect of the Control Point
acquisition, which was completed on 8 September 2017.
Order intake in the half year to 31 December 2017 has been
generated from a broad range of sectors including the development
of electric vehicle battery systems from a customer in China,
passenger car new engine design work from Japan, a European car
battery testing program, a large multi-year order for the
independent verification and validation of a Taiwanese rail line
and further air quality work for the UK Government. The order
intake relating to electric or hybrid vehicles in the half year to
31 December 2017 has been particularly encouraging and is in the
region of 24% of total order intake, compared to 17% for the year
to 30 June 2017.
The order book has increased to a record high and was in excess
of GBP290m at the end of December 2017, including GBP8m in respect
of the Control Point acquisition; this compares to an order book of
GBP244m at the same time last year. In addition, the order book
contains a higher proportion of orders that are for delivery beyond
this financial year which provides the group with greater
visibility over the medium term.
Cash performance in the period has been strong with net debt
reducing from GBP38m at the end of June 2017 to GBP32m at the end
of December 2017. The Net debt at the end of the period is stated
after paying GBP6m consideration and related costs in respect of
the acquisition of Control Point Corporation in September 2017.
Dave Shemmans, Chief Executive Officer, commented:
"I am pleased to see the strong order intake in the first
quarter continuing throughout the first half and resulting in an
increase of over 30% compared to the first half of the prior year.
We continue to see a good spread of orders across our Technical
Consulting business and our Performance Products activities. This
provides a good base as we head in to our traditionally more
profitable second half of the year. I am also particularly pleased
with our cash performance in the period driven by a strong working
capital performance. We look forward to continued progress in the
rest of the year."
Further enquiries:
Ricardo plc
Dave Shemmans, Chief Executive
Officer Tel: 01273 455611
Ian Gibson, Chief Financial
Officer
Website: www.ricardo.com
Newgate Communications Tel: 020 7653 9842
Adam Lloyd, Zoë Sibree,
Ed Treadwell
This information is provided by RNS
The company news service from the London Stock Exchange
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