Profits up 43% for Ricardo as auto markets drive growth
AUTOMOTIVE and engineering consultancy Ricardo has achieved strong full year revenue, profit and EPS growth based on a strengthening of its keys market sectors.
The group, which has a major innovation centre in Leamington Spa, saw revenue increase 21% to £196.5m (2010: £162.8m), with pre-tax profit rising 43% to £15.4m (2010: £10.8m).
Basic earnings per share grew 49% to 30p (2010: 20.1p), while increased profits saw the full year dividend rise 7% to 11.5p per share (2010: 10.7p).
Looking ahead, it said the outlook remained positive with a strong platform being set to grow the business. The order book increased to £107m (2010: £101m).
Dave Shemmans, Ricardo chief executive, said: “The strong performance we achieved in the first half of the financial year continued through the remainder of the year, resulting in a very good full year performance.
“In the year we welcomed back some of our long term clients from the automotive sector, collaborated with Force Protection Europe on the Foxhound Light Protected Patrol Vehicle to win a competitive tender from the UK MoD, launched the McLaren supercar engine into production and established a long term engineering relationship with Jaguar Land Rover.”
Overall, he said the market for Ricardo remained positive and active, in spite of the continued economic uncertainty.
“We continue to focus on developing new advanced technologies, innovations and product solutions that are both energy efficient and clean. We are marketing these solutions to a diverse sector and global client base who require them for competitive and legislative reasons and they are being well received,” added Mr Shemmans.
“Operationally our focus on cost, delivery and cash management has underpinned the strong overall performance. We have a market and operational platform which has delivered a good set of results this year. We intend to build upon this performance and thus we remain confident for the future.”
