Strengthening order book boosts Ricardo as China projects beckon

ENGINEERING consultancy Ricardo, which has a large operation in Warwickshire, has issued a positive interim management statement on the back of a strong order book.

Ricardo – whose client list includes the world’s major transportation original equipment manufacturers (OEMs), supply chain organisations, energy companies, financial institutions and governments – said its order book at the end of April was £141m, compared to £130m at the same time last year.
 
In the statement – covering the period from January 1 to date – the firm said it has benefited from a good level of orders in April in the US. The order intake in the ten months to April was £215m compared to £186m in the same period of the previous year.
 
Significant contracts won in the last four months include orders in the US in respect of a large engine project for a major passenger car OEM, a further DARPA order in the US defence sector and a commercial vehicle engine programme.

Orders in the UK include further passenger car orders for large OEMs, and in Performance Products orders include the pre-production phase of the new McLaren contract together with further motorsport transmissions.
 
Ricardo said the pipeline is encouraging with a number of projects for Chinese customers that are in the latter stages of negotiation and passenger car opportunities in the UK, US and Germany.

“In addition, we are pleased to announce that we have further underpinned our Performance Products business with the signing of a multi-year production supply agreement with total revenue expected to be in excess of £35m, commencing in financial year 2015/16,” the firm said.

Total Group revenue in the ten months to April 2014 is up 3% on the same period in the prior year and profit is tracking in line with full year expectations.

Chief executive officer Dave Shemmans said: “We are pleased with the order intake, order book and current pipeline across the group, with recent orders in the US, opportunities in China and activity in the passenger car market particularly encouraging.

“Performance Products continues to grow and the announcement of another new multi-year supply agreement provides further long-term visibility.

“Overall, we remain confident of continued progress for the full year.”