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28 February 2019
Ricardo plc - Interim results for the six months ended 31 December 2018
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HIGHLIGHTS
- Order intake good at £202m, compared to £238m in HY 2017/18;
- Order book increased to £302m, up £7m on June 2018;
- Revenue up 4% to £188m on HY 2017/18;
- Underlying PBT up 1% to £15.3m on HY 2017/18;
- Strong order intake in High-Performance Vehicles and Defence, with a well-diversified order mix overall;
- Good performance in Rail, Energy & Environment, Defence, Performance Products and Software have fully offset weaknesses in our European and US Automotive businesses, demonstrating the importance of diversification across sectors and geographies;
- Strong cash performance with neutral working capital and net debt at £27.5m, compared to £26.1m at June 2018;
- Interim dividend increased by 4% to 6.00p from 5.75p; and
- Acknowledging the uncertain economic climate, we remain positive due to a good order book and diverse pipeline, the recently signed long-term McLaren programme, and deliveries of ABS kits now underway.
| % Change | ||||
| HY 2018/19 | HY 2017/18(3) | Reported | Organic(4) | |
| Order intake (£m) | 202 | 238 | -15 | n/a |
| Order book (£m) | 302 | 308 | -2 | n/a |
| Revenue (£m) | 188.1 | 181.4 | +4 | +2 |
| Underlying(1) | ||||
| Profit before tax (£m) | 15.3 | 15.1 | +1 | - |
| Basic earnings per share(2) (p) | 22.1 | 21.7 | +2 | - |
| Statutory | ||||
| Profit before tax (£m) | 10.3 | 11.3 | -9 | -10 |
| Basic earnings per share (p) | 14.6 | 14.8 | -1 | -4 |
| Dividend per share (p) | 6.00 | 5.75 | +4 | n/a |
| Net debt (£m) | (27.5) | (31.5) | +13 | n/a |
(HY 2017/18: £Nil). Underlying measures are considered to provide a more useful indication of underlying performance and trends over time.
(2) Underlying earnings also exclude a tax credit to statutory earnings of £1.0m (HY 2017/18: £0.1m) for the specific adjusting items in
Footnote 1 and as set out in Note 3.
(3) Comparative financial information has been restated for the transitional impact of adopting IFRS 15 Revenue from Contracts with Customers from 1 July 2018 and is presented on a like-for-like basis with HY 2018/19. The impact of the restatement is a reduction in revenue and profit before tax of £1.2m and earnings per share of 1.9p, as set out in Note 8, together with a £6m cumulative increase in order book.
(4) Includes the performance of acquisitions (Control Point Corporation) in HY 2017/18 on a like-for-like basis with HY 2018/19.
Commenting on the results, Dave Shemmans, Chief Executive Officer said:
“Our strategy of developing the business across a diverse mix of geographies, sectors and clients has delivered a good set of results and in line with our expectations. Good performance in Rail, Energy & Environment, Defence, Performance Products and Software has mitigated the impact of the ever-changing geopolitical and technological backdrop on our European and US Automotive businesses.
“Acknowledging the uncertain economic climate, we remain positive due to a good order book and diverse pipeline, the recently signed long-term McLaren programme, and deliveries of ABS kits now underway.”
Further enquiries:
Ricardo plc
Dave Shemmans, Chief Executive Officer
Ian Gibson, Chief Financial Officer
Tel: 01273 455611
Website: www.ricardo.com
Newgate Communications LLP
Adam Lloyd / Zoë Sibree / Ian Silvera / Imogen Humphreys
Tel: 020 7680 6550
E-mail: ricardo@newgatecomms.com
