Ricardo order book rises to record £248m

Ricardo's underlying pre-tax profits rose by 2% to £38.3m in the year to the end of June.

Revenues were up 6% at £352m and the group's order book increased by 7% to a record £248m.

The group declared a dividend of 19.3p per share - up 7%.

Chief executive Dave Shemmans said: "I am pleased to report another solid year of progress for Ricardo. Based on the foundation of a diversified strategy and an increasingly balanced business, we have navigated an uncertain and volatile year, providing a satisfactory result overall.

"Our Rail and Environmental consultancies delivered strong results at both revenue and operating profit levels, as did our Performance Products business.

"Within Performance Products we were pleased to deliver our 10,000th engine to McLaren and to be selected to design and produce an advanced hypercar transmission for Aston Martin.

"Our Automotive business in Europe experienced a disrupted year of order flows which led to a less efficient business operation, but the year ended with strong order intake in both the engines and electrification businesses and we are pleased to see a return to more normal order intake patterns.

"With the US business underperforming, a changing customer dynamic and the increased emphasis on electrification, we are repositioning the US business to enhance our electrified and autonomous vehicle service offering, led from California where many new entrants are based.

"We enter the new financial year with a well balanced business and welcome the in-year acquisition of Exnovo and the recent Control Point Corporation acquisition post year-end.

"We continue to address and adjust to the changes in our individual markets to ensure we both mitigate risk and capitalise on the significant global opportunities which lie ahead.

"These opportunities, together with our progress, our people and our technology, in addition to our record order book, provide a good platform for further growth in the years to come."

At 8:08am: (LON:RCDO) Ricardo PLC share price was +3.75p at 757.75p