(Alliance News) - Ricardo PLC on Tuesday said full-year trading was in line with board expectations, with good increases in new order levels and a reduction in net debt.
The Shoreham-by-Sea, England-based company reported growth in order intake of over 20% at around GBP430 million from the year prior. Ricardo expects to enter the new financial year with an order book of around GBP340 million, which is 15% higher than the year before.
Further, the company reduced its net debt to GBP35 million as at June 30 from GBP47 million a year before. Ricardo said strong cash generation was achieved through working capital management and profits made during the year.
The engineering consultancy company acquired Inside Infrastructure, an Australia-based consulting company, for GBP5 million in March.
The automotive & industrial arm returned to profit while the energy & environment was supported by contract winds. Revenue for the rail segment was "slightly down" on the prior year as a result of market conditions and long-term projects nearing completion, though order intake increased.
Ricardo's defence segment saw double-digit revenue growth as it secured a "good level" of orders, which included a GBP19 million order from the US Army for its Antilock Brake System/Electronic Stability Control retrofit kits, a safety anti-skid breaking system.
Chief Executive Officer Graham Ritchie said: "I am delighted that, over the course of the year, we have continued to deliver in line with our expectations. We have made significant progress in [the financial year], delivering a very good financial performance with increased order intake across all our business segments and a strong operating cash conversion".
Shares in Ricardo were down 0.1% at 403.80 pence in London on Tuesday.
By Dominique Pretorius; dominiquepretorius@alliancenews.com
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Ricardo (RCDO)