Full Year 2024 Ricardo PLC Earnings Call Transcript
Key Points
- Ricardo PLC (LSE:RCDO) reported a 96% improvement in cash from operations year-on-year, driven by rigorous working capital management.
- The company achieved a 9% increase in revenue to GBP475 million and a 13% rise in profit before tax to GBP30.5 million.
- Operating margins improved by 60 basis points to 8.2%, reflecting better cost management and operational efficiency.
- The company proposed a year-end dividend of 8.9p, resulting in a total dividend for the year of 12.7p, up 6% from the previous year.
- Ricardo PLC (LSE:RCDO) entered FY25 with a record 12-month order book, providing confidence in future profit growth.
- Order intake decreased by 3% compared to the previous year's record, indicating some variability in market demand.
- The environmental and energy transition portfolio experienced delayed orders in the A&I business, impacting overall performance.
- The water advisory business faced project disruptions in the Middle East, leading to lower utilization and reduced margins.
- Interest costs increased to GBP2.2 million due to higher interest rates and increased net debt from acquisitions.
- The defense business is expected to see a 20% reduction in volumes on the ABS program in FY25, potentially impacting revenue and profit.
Good to Go. Okay. So good morning, everybody, and welcome to the full year results for Ricardo for '23-'24. As always, I'd just draw your attention to the disclaimer statement. So for the agenda today will follow a consistent approach.
I'll start with a summary of the overall performance of the group. Judith will take you through the key financial detail. I'll then spend a bit more time updating on the strategic progress we've made in the year and provide a look forward to some of the key things that we're focused on in '24-'25. And then we'll finish with a few closing remarks before opening up for questions.
So we continue to deliver on the financial commitments that made in our five-year strategy presented in May 2022. This was delivered by a very strong second half overall for the group and a return to profit in A&I following the actions taken to create a more flexible operating model.
The profit improvement, combined with rigorous working capital management has improved cash from operations by 96
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