Ricardo sees signs of recovery

28th Sep 2010 08:34

Engine consultant Ricardo revealed a drop in annual earnings but remains confident about future trading as markets continue to show signs of recovery. For the full year ended 30 June 2010 pre-tax profit fell to £10.8m from £15.7m in 2009. Revenue slipped to £162.8m from £178.8m the same period a year earlier.Commenting on the results, Ricardo said, "Despite a turbulent and challenging year with a backdrop of a weak passenger car market, Ricardo responded well by following its previously stated diversification strategy into new markets and developing a broader client base."It added, "We are now seeing signs of recovery from our traditional clients, with orders starting to be placed; however, we are continuing to run the business with high levels of control and vigilance."Ricardo said it is well positioned with a good orderbook, a broad client base, technology portfolio and a strong balance sheet. A full year dividend of 10.7p has been recommended, unchanged from last year.