Ricardo expects profits at 'lower end' of forecasts

25th Jul 2018 08:16

(Sharecast News) - Despite a good level of order intake, engineer Ricardo expects full-year profits to come in at the lower end of analysts' forecasts.Order intake increased 12% on the prior year to more than £410m, including a £10m boost from its acquisition of Control Point in September 2017, as Ricardo's order book was in excess of £285m as of 30 June - a 15% year-on-year improvement.Total group revenue for the year to 30 June was up more than 8% to in excess of £380mHowever, despite the good order intake and increased revenue, Ricardo warned that due to reduced performance within its EMEA Automotive business in the second half of the year, it expects underlying pre-tax profits to come in towards the lower end of analyst forecasts.Ricardo said that this was due to reduced performance within its EMEA Automotive business in the second half of the yearChief executive Dave Shemmans said, "It has been a busy year across the group with mixed performance in our different market sectors and regions which underlines the importance of our diversification strategy.""Despite some uncertainty in the UK in the short term, we enter the new financial year in good shape and I remain confident about the future."As of 1040 BST, Ricardo shares had tumbled 12.07% to 823.04p.