Global presence and record order intake boost engineering group’s revenues to £380m

Engineering group Ricardo has reported an 8% rise in revenue to £380m for the full year, boosted by record order intake as it said its global presence helped the business mitigate the impact of current uncertainty in the UK market.

The group, which has a large testing centre operation in Leamington Spa, is a global engineering, technical, environmental and strategic consultancy business, which also manufactures and assembles niche, high-quality and high-performance products.

Ricardo reported record order intake at £413m, up £47m on the previous year, with record year-end order book at £288m, up £40m on June 2017.

Underlying profit before tax was also up, a rise of 2% to £39m, for the year to the end of June.

The company put in a strong performance in Asia and electric vehicle order intake, while it said its acquisition of Control Point has enhanced its US defence business.

In the year, Ricardo disposed of its Chicago and Southern Germany engine test facilities, a move to balance its asset mix with the trend towards electrification.

Dave Shemmans, chief executive, 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.”