Ricardo (RCDO) Trading Update summary

Trading performance and financials

• Revenue increased by 7% (9% constant currency) for FY23/24, with underlying profit before tax expected in line with guidance.

• Order intake was approximately £495 million, down 5% year-on-year, mainly due to prior year programme wins and timing of large orders.

• Net debt at 30 June 2024 was £59.6 million, including £13.6 million in earn-out payments for E3M and Aither acquisitions.

• Strong cash generation achieved through rigorous working capital management, despite £5.4 million in costs for accelerating the functional operating model.

Business unit highlights

• Energy and Environment showed good momentum except for water advisory services, which faced project disruptions.

• Rail delivered consistent growth and order execution.

• Automotive and Industrial saw strong profit growth in H2, with a stable 12-month deliverable order book and improved pipeline visibility.

• Performance Products posted strong H2 profit, but growth is expected to moderate in FY24/25 as large programmes complete.

• Defense maintained strong delivery, especially on the ABS/ESC programme, expected to complete in September 2027.

Strategic outlook and leadership comments

• Operational efficiencies improved following consolidation of functional teams.

• CEO highlighted progress in H2 FY23/24 and focus on accelerating strategic execution and pipeline visibility.

• Entering the new year with a robust order book and focus on long-term, sustainable growth.

• Full year results for FY23/24 will be published on 11 September 2024.