25th Feb 2021 11:47
(Alliance News) - Ricardo PLC on Thursday said trading has been in line with its expectations despite the impact caused by the Covid-19 pandemic.
The West Sussex, England-based environmental services consultancy recorded revenue for the six months ended December 31 of GBP164.7 million, down 15% from GBP192.9 million in 2019.
In the period, Ricardo saw a swing to a pretax loss of GBP2.1 million from a GBP8.3 million profit a year prior.
Order intake for the six months fell 13% to GBP181.1 million from GBP208.6 million in 2019, while
its order book decreased slightly to GBP318.2 million from GBP319.4 million.
Ricardo said its performance reflects a "significant" change in the commercial environment since the Covid-19 pandemic began. However, it said compared to the six months to June 30, its performance demonstrates "positive signs of recovery following the initial impact of Covid-19, as the group, customers, and other stakeholders have adapted to the current trading and working conditions."
As a result of its hurt performance, Ricardo has cut its interim dividend per share to 1.75 pence from 6.24p in 2019.
Shares in Ricardo were down 0.4% at 470.00 pence in London on Thursday.
"The group's results were in line with our expectations in the first half of the year, and I am encouraged that the results show that we are starting to recover from the Covid-19 impacted low of the second half of financial 2020. There has been continued profit growth in Energy & Environment and Rail, and volumes in Performance Products have increased over the second half of financial 2020. Automotive & Industrial remains challenging, but we are seeing some green shoots of recovery," said Chief Executive Dave Shemmans.
Looking ahead, Ricardo said it plans to strengthen its global market position through a combination of organic growth and focused acquisitions.
"Whilst the economic outlook continues to remain uncertain, we have a robust order book, good pipeline of opportunities and our diversified business platform offers leading edge capabilities to support the global environmental agenda. We remain cautiously optimistic about the economic recovery and for further progress of the business as we deliver on our strategy," added Shemmans.
By Zoe Wickens; [email protected]
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