Ricardo Secures Record Order Book As Annual Revenue Rises

LONDON (Alliance News) - Ricardo PLC said Thursday it had a record order book at the end of its ...

Alliance News 14 September, 2017 | 9:13AM
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LONDON (Alliance News) - Ricardo PLC said Thursday it had a record order book at the end of its recent financial year, a period when revenue also rose but profit fell due to exceptional charges.

Revenue rose 6% to GBP352.1 million in the year that ended June 30 from GBP332.4 million, with the order book increasing to GBP248 million from GBP231 million.

Ricardo said the increase in revenue was driven by strong performance in the rail and environmental consultancies as well as the performance products business.

Profit before tax fell slightly to GBP32.2 million from GBP33.0 million, as non-recurring charges increased to GBP6.1 million from GBP4.7 million. Underlying pretax profit rose slightly to GBP38.3 million from GBP37.7 million.

The order book hit a record GBP248 million from GBP231 million, a 7% increase, and Ricardo said the closing order book, combined with "very good" pipeline opportunities, continues to represent a diverse spread of orders over a variety of sectors, customers, and geographic areas.

The dividend to be paid for the full year was increased by 7% to 19.3 pence per share compared to last year's 18.1p. The proposed final dividend of 13.88 pence per share, up from last year's 13.03p, will be paid on November 17.

The automotive business in Europe experienced a disrupted year of order flows, but the year ended with strong order intake, Ricardo said. The overall order intake for the year rose 1% to GBP366 million from GBP361 million.

Looking forward Ricardo said it enters the new financial year with a well-balanced business. With a concerted effort to mitigate risk and capitalise on global opportunities, it said it has a good platform for further growth in the years ahead.

Shares in Ricardo were up 1.3% Thursday at 763.63 pence.

By George Collard; georgecollard@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Ricardo PLC 961.10 GBX -2.52 -
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