11 September 2024

Full year results 23/24

Annual results for the year ended 30 June 2024
Good growth and excellent cash performance

HIGHLIGHTS

  • A year of continued good growth and excellent cash performance, delivering in line with the board’s expectations
  • Order intake down 5% (3% constant currency) on the back of record order intake in FY 2022/23
  • Continued variability of order timing and order volatility in some end markets
  • Revenue from continuing operations up 7% (9% constant currency) owing to good sales momentum
  • Strong recovery in H2 profit performance, with Automotive and Industrial returning to profit
  • Actions to accelerate the operating model transformation underpinned H2 profit recovery and delivered improving margins
  • Underlying operating profit from continuing operations increased by £4.8m (£5.6m constant currency)
  • On track to double underlying operating profit in the five years to FY27
  • A rigorous focus on working capital management delivered 119% underlying cash conversion and reduced net debt to £59.6m
  • Group leverage on target at 1.25x
  • Final dividend of 8.9p proposed giving total dividend for FY 2023/24 of 12.7p (FY 2022/23 11.96p)
  • Robust year end order book and good pipeline visibility gives confidence for FY 2024/25

 

       

Growth/ (decline)%

Constant Currency

Growth/ (decline)%(6)

 

 

2024

2023

           

Continuing operations

         

Order intake

£m

496.1

521.5

(4.9)

(3.0)

Order book

£m

396.5

395.3

0.3

0.5

Revenue

£m

474.7

445.2

6.6

9.1

           

Underlying(1)

         

- Operating profit

£m

38.8

34.0

14.1

16.9

- Operating profit margin

%

8.2

7.6

0.6pp

0.6pp

- Profit before tax

£m

30.5

27.9

9.3

12.5

           

Statutory

         

- Operating profit/(loss)

£m

12.8

(1.9)

773.7

740.0

- Operating profit/(loss) margin

%

2.7

(0.4)

3.1pp

3.2pp

- Profit/(loss) before tax

£m

4.3

(8.0)

153.8

153.8

           

Total

         

Underlying(1) cash conversion(2)

%

118.9

66.7

52.2pp

 

Cash conversion(2)

%

125.4

50.7

74.7pp

 

Basic underlying earnings per share(3)

p

35.9

33.4

7.5

 

Basic reported profit/(loss) earnings per share

p

1.1

(8.7)

112.6

 
           

Closing

         

Net debt(4)

£m

59.6

62.1

(4.0)

 

Headcount(5)

no.

2,872

2,919

(1.6)

 

         

 

Dividend per share (paid and proposed)

p

12.70

11.96

6.2

 

 

 

 

 

 

 

Continuing operations exclude the results of Ricardo Software, which was sold on 1 August 2022.

References are defined in the glossary of terms below.

Commenting on the results, Graham Ritchie, Chief Executive Officer, said:

“This was a year of material change for Ricardo, whilst still delivering consistent financial performance in line with commitments. This was achieved with strong momentum in H2.

During the year, we have continued to refine and reposition our portfolio from services to solutions, which allows us to increase our strategic consulting expertise while also investing significantly in our digital applications. We are seeing variability in some end markets but continue to focus on consistency in organic order growth.

Strong progress has been made with the restructuring programme to deliver One Ricardo and drive further efficiency across the business. All enabling functions are now fully centralised and right sized to deliver our future business, while we have further optimised our flexible resourcing model to support effective programme delivery and manage order fluctuations in A&I.

At Ricardo, we are more conscious than ever of the importance of the work that we do, demonstrating the commitment to being purpose-led in the projects that we work on. Our record order book for the next twelve months provides confidence in delivering further good growth in the year ahead.”

 

Further enquiries:

Ricardo plc
Judith Cottrell
Natasha Perfect
Tel: +44 (0) 12273 455611


SEC Newgate

Elisabeth Cowell
Ian Silvera
Tel: +44 (0) 207 680 6882
E-mail: ricardo@secnewgate.co.uk

 

View the full press release