9th Sep 2013 08:01
LONDON (Alliance News) - Ricardo PLC Friday reported higher full-year profits and revenues as demand for its engineering services in the UK more than offset weak demand in Germany, and said it had already experienced good order intake in the first two months of the current year.
The company reported a pretax profit of GBP22.1 million in the year to June 30, up from GBP18.6 million a year earlier, as revenues rose to GBP229.7 million, from GBP197.4 million. Net profit was GBP17 million, up from GBP15.1 million.
It raised its dividend to 14 pence, from 12.4 pence.
Ricardo, which provides engineering, technology and environmental consultancy services to customers including vehicle manufacturers, governments and power generators, said much of the boost to earnings and revenues came from its acquisition of AEA last November. Ricardo-AEA, as the unit is now known, contributed GBP25.4 million in revenues and GBP2.8 million in pretax profit.
The company said it had a total of GBP121 million at the end of the year and significant opportunities in its order pipeline.
It had net funds of GBP6.1 million at the end of the year, down slightly from GBP7.9 million a year earlier after spending GBP18 million on AEA.
"We are starting 2014 with a solid order book, good order intake in the first two months and a growing pipeline which includes significant opportunities in the passenger car market," Chief Executive Dave Shemmans said.
The company's shares were up 5% at 505.51 pence, one of the biggest increases on the FTSE All-Share.
By Steve McGrath; [email protected]; @SteveMcGrath1
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