Trade in line with our expectations
During the year ended June 30, 2022, Ricardo traded in line with Board expectations and delivered full year performance with a very good level of new orders and strong generation operating cash.
The 2021/22 financial year saw high levels of growth with positive momentum, driven by strong order intake at around £430m, up more than 20% on the prior year. We start the new financial year with a good order book of around £340m, up more than 15% on the previous year. Net debt at 30 June 2022 was £35m (including the £5m cost of the acquisition of Inside Infrastructure in March 2022) compared to £47m at 30 June 2021.
Within our sectors of activity:
Strong growth across Energy and Environment (“EE”) The business was supported by a number of major contracts won for its growing portfolio of sustainability services and increased demand for environmental consulting services in the corporate and water decarbonization segments.
Automotive and Industry returned to profitability with a strong rebound in order intake and revenue. We saw growth in order intake in North America and EMEA and we continue to win major contracts to support our customers in the rapid transition to decarbonized and sustainable transport solutions.
Rail increased its order intake, thanks to new contracts won, in particular in certification services and thanks to its recent expansion in North America. Overall, revenue was down slightly from the prior year, impacted by global market conditions as well as some long-term projects nearing completion.
High-performance products performed well, reflecting strong demand for engines and transmissions from key customers such as McLaren, Porsche and Aston Martin, while extending several key motorsport programs including Formula E, Formula 1 and the World Championship rallies.
Defense received a good level of orders, including a $19 million order from the US Army for anti-lock braking system/electronic stability control (ABS/ES) upgrade kits. Revenue showed double-digit year-over-year growth, driven by both the ABS program and engineering services.
Continued strong cash generation
At June 30, 2022, net debt was £35m, compared to £47m at June 30, 2021 and £39m at December 31, 2021. The reduction in net debt was achieved through the combination of profits generated during year and solid working capital management. In March 2022, Ricardo paid £5 million to acquire Australian company Inside Infrastructure.
Graham Ritchie, Managing Director, commented:
I am delighted that during the year we have continued to deliver in line with our expectations. We made significant progress in FY21/22, delivering very strong financial performance with increased order intake across all of our business segments and strong cash conversion from operations.
Since joining the Group in October 2021, I have completed a thorough review of the business and recently launched our refined strategy, shaping Ricardo’s future to become an energy and environmental transition consultancy. leading.
We will do this by establishing a clear direction that prioritizes high-growth, high-margin solutions and by being rigorous and disciplined in our execution. In doing so, we aim for sustainable and profitable growth, creating value for our shareholders, our colleagues and our customers.
It’s an exciting time for Ricardo.
About Ricardo plc
Ricardo plc is a global strategy, environmental and engineering consultancy, listed on the London Stock Exchange. With over 100 years of engineering excellence and employing nearly 3,000 employees in more than 20 countries, we provide exceptional levels of expertise in delivering innovative cross-sector sustainable results to support the energy transition and scarce resources, environmental services as well as safe and smart mobility. Our global team of consultants, environmental specialists, engineers and scientists help our clients solve the most complex and dynamic challenges to help achieve a safe and sustainable world. Visit www.ricardo.com
This announcement is published by Ricardo plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK national law under the Market Abuse Act 2018. European Union (withdrawal) (“TUE”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
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