Ricardo ends financial year with strong momentum

31st Jul 2024 10:36

(Sharecast News) - Shares in Ricardo were advancing on Wednesday the environmental and engineering consultancy said it saw a recovery in profitability in the second half, and has entered the new financial year in a strong position.

The company said that results for the year ended 30 June should be in line with previous guidance, with the bottom line being helped by "improved operational efficiencies following the consolidation of the functional teams".

Full-year revenues were up 7%, though order intake was down 5% on the year before at £495m which it said was due do tough comparatives and the timing of large orders in the automotive and industrial sectors.

Ahead of its full-year results on 11 September, chief executive Graham Ritchie said: "We enter the new year with a solid order book as we continue to focus on delivering long-term and sustainable growth."

Ricardo hailed its cash generation during the period, as it ended the year with a net debt position of £59.6m, down with £63.3m at the half-year stage, even after £13.6m of cash outflow for earn-out payments relating to recent acquisitions and £5.4m in restructuring costs.

Shares were up around 5%. at 516p by 1121 BST.