Engineering consultant Ricardo enjoys strong first half on sold automotive, rail and power sectors
ENGINEERING consultancy Ricardo, which has a large operation in Warwickshire, has announced strong interims based on encouraging results from the automotive, rail and power generation sectors.
The group, which employs 2,100 people globally, saw total revenues increase to £111.9m in its first six months, a 12% increase on the prior period (December 31, 2012: £100.3m). Underlying pre-tax profit increased 29% to £9.3m, up from £7.2m in the prior period.
Reported pre-tax profit was £8.8m compared to £5.8m in the prior period and Underlying basic earnings per share for the first half increased by 28% to 14.6p (December 31, 2012: 11.4p).
The board has declared an increased interim dividend of 4.3p per share (December 31, 2012: 4.0p) which it said reflected the continuing progress over the last six months and the confident outlook. The dividend will be paid on April 7, 2014 to shareholders on the register at the close of business on March 7, 2014.
The closing order book reached a record level of £143m, and together with the pipeline, the company said it contained a good spread across markets sectors, customers and geographies.
First half highlights included a record order book up 18% to £143m (June 2013: £121m) and a multi-year engine supply agreement signed with McLaren Automotive – the largest single deal in the company’s history.
Looking ahead, it said the outlook remained positive and the business had a strong platform for further growth.
Dave Shemmans, CEO, said: “Ricardo has continued to secure good levels of new business, with the period end order book at a record level of £143m, well diversified across geographies and market sectors. We have increasing levels of business from Asia and Europe and the market sectors of rail, motorcycles and power generation continue to expand.
“A highlight of the period was the conclusion of the landmark engine supply agreement with McLaren Automotive. The long-term nature of this agreement underscores the effectiveness of our working relationship with McLaren and provides an exciting opportunity to deliver innovative new products. In addition, it is pleasing to note that Ricardo-AEA, which was acquired in the previous financial year, has now been fully integrated and is performing well.
“With the record order book well balanced across both Technical Consulting and Performance Products and an encouraging order pipeline, we remain confident of further progress in the future.”
