Ricardo plc is today providing a trading update for the six month period ending 31 December 2012. Ricardo will announce its interim results on 28 February 2013.
Since our Interim Management Statement issued in November 2012, business performance has tracked to plan, with order intake across multiple geographies and business segments.
Within Technical Consulting, the UK operations have continued to secure a good stream of business and we continue to work on existing multiyear programmes with key UK clients. In addition, further work has been secured in Japan and the pipeline of activity continues to build in China where starter programmes have been won which should lead to multiyear programmes. Mainland Europe remains benign although work from a large engine client and a Chinese motorcycle manufacturer is offsetting the reduction in test bed revenue in our German division. Our US division has maintained its strong order book position built earlier in the financial year.
The recent acquisition of AEA Europe, announced in November 2012, is delivering to plan, both in terms of expected trading performance and the integration into the wider Ricardo business. Clients and employees have received Ricardo's ownership extremely well.
The Performance Products business continues to be busy with high levels of motorsport activity including further Bugatti transmission orders, continued assembly of super car engines and defence vehicles and the Malaysian rail programme entering the production phase.
We continue to manage our working capital very well and despite the recent acquisition, we closed the end of December with only marginal net debt balance and a strong balance sheet.
Dave Shemmans, CEO, commented: "We are encouraged by our solid orderbook and pipeline, as well as the continued progress in implementing our strategic growth plans, including diversification into neighbouring market sectors. We remain confident of further progress both in the half and full year."
Further enquiries:
Ricardo plc
Dave Shemmans, Chief Executive
Paula Bell, Group Finance Director
Tel: +44 (0)1273 455611
Website: www.ricardo.com
Kreab Gavin Anderson
Fergus Wylie
Michael Turner
Madeleine Palmstierna
Tel: +44 (0)20 7074 1800
A full version of the Trading Update issued today by Ricardo plc can be downloaded from the link at the top right of this page.
Ricardo plc is a global strategic, environmental, and engineering consulting company. The Company operates through six segments: Energy & Environment (EE); Rail; Automotive and Industrial Emerging (A&I Emerging); Automotive and Industrial Established (A&I Established); Defense, and Performance Products (PP). The EE segment is engaged in the provision of environmental consultancy services to customers across the world. The Rail segment is a consultancy unit that provides technical advice and engineering services; and performs accredited assurance services. The A&I Emerging segment provides engineering, strategic consulting, and design, development, and testing services. The A&I Established segment is focused on power electronic systems and propulsion systems, software, and digital technologies. The Defense segment provides engineering services, software, and products. The PP segment manufactures, assembles, and develops niche components, prototypes, and complex products.
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