19th May 2014 11:03
LONDON (Alliance News) - Ricardo PLC Monday said total group revenue in the ten months to April is up 3% on the same period in the prior year, with profit tracking in line with full-year expectations, while announcing a new contract expected to be worth more than GBP35.0 million in revenue.
In a statement, the engineering and environmental consulting company said its performance-products segment continues to perform well. However, within its technical consulting segment, third-quarter revenue in the UK has been slightly lower than expected due to a delay of certain orders.
Ricardo-AEA and Ricardo Strategic Consulting continue to perform well and in line with expectations, it said. In Germany and the US, Ricardo said it is building momentum, with the order book in each location significantly ahead of the prior year.
Ricardo its total order book at the end of April amounted to GBP141.0 million, compared with GBP130.0 million at the same point last year, due to good order levels in the US. The order intake in the ten months to April was GBP215.0 million compared with GBP186.0 million in the same period of the prior year.
Significant orders won in the last four months include orders in the US in respect of a large engine project for a major passenger-car original equipment manufacturer, a further order from the US Defense Advanced Research Projects Agency in the US defence sector, and a commercial vehicle engine programme. Orders in the UK include further passenger car orders for large original equipment manufacturers, and, in performance products, orders include the pre-production phase of the new McLaren contract together with further motorsport transmissions.
In addition, Ricardo said it has further underpinned its performance products business with the signing of a multi-year production supply agreement with total revenue expected to be in excess of GBP35.0 million, commencing in financial year 2015/16. Ricardo said the customer wishes to remain anonymous for the time being, adding that the full value of the contract is not reflected in the order intake or the order book it reported Monday.
"We are pleased with the order intake, order book and current pipeline across the group, with recent orders in the US, opportunities in China and activity in the passenger car market particularly encouraging. Performance products continues to grow and the announcement of another new multi-year supply agreement provides further long-term visibility. Overall, we remain confident of continued progress for the full year," Dave Shemmans, chief executive, said in a statement.
Ricardo shares were Monday quoted at 668.20 pence, up 1.2%.
By Samuel Agini; [email protected]; @samuelagini
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