Ricardo (RCDO)

Sector:

Support

Index:

FTSE Small Cap

457.00p
   
  • Change Today:
      9.00p
  • 52 Week High: 610.00p
  • 52 Week Low: 404.00p
  • Currency: UK Pounds
  • Shares Issued: 62.22m
  • Volume: 85,138
  • Market Cap: £284.34m
  • RiskGrade: 242

Ricardo cuts jobs as business slips to second half

By Sean Farrell

Date: Wednesday 11 Nov 2020

LONDON (ShareCast) - (Sharecast News) - Ricardo said it cut 120 jobs as the engineering group warned business would be weighted towards the second half of the year.
The group reported orders up 19% to £105.2m in its first quarter from a year earlier. But it said more than £20m of automotive and industrial (A&I) orders were over several years and that in the short term orders would stay low in the first half.

Ricardo said it typically made 40% of operating profit in the first half and 60% in the second half but that this year it expected just 25% in the first half with the rest to come as the economy emerges from Covid-19. It predicted a small net cash outflow in the first half on top of £8.2m of earnout and redundancy costs.

The company reduced headcount at the automotive and industrial business by 120 in October. It said the cuts were to reduce costs with orders slow in Europe, the Middle East and Africa. Ricardo shares fell 6.3% to 345.9p at 10:55 GMT.

Dave Shemmans, Ricardo's chief executive, said: "With the mix of orders received and forecast within A&I, together with the continuing challenging conditions in A&I EMEA, we expect the group's revenue and trading performance to be materially more weighted towards the second half of the current financial year than in previous years. A&I EMEA continues to receive a low level of orders that are workable in the short term, so we have taken further action to reduce costs."

Total A&I orders rose 27% to £39.2m and energy and environment orders were up 29% to £11.7m. Rail and defence orders were up 40% and 141% respectively but performance products orders fell 42%.

Shemmans said: "The economic outlook continues to be uncertain and we approach the year ahead with a degree of caution, with our non-automotive businesses providing some resilience against continuing challenges in the automotive segment."





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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Ricardo Market Data

Currency UK Pounds
Share Price 457.00p
Change Today 9.00p
% Change 2.01 %
52 Week High 610.00p
52 Week Low 404.00p
Volume 85,138
Shares Issued 62.22m
Market Cap £284.34m
RiskGrade 242

Ricardo Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
77.91% below the market average77.91% below the market average77.91% below the market average77.91% below the market average77.91% below the market average
60% below the sector average60% below the sector average60% below the sector average60% below the sector average60% below the sector average
Price Trend
4.8% below the market average4.8% below the market average4.8% below the market average4.8% below the market average4.8% below the market average
0.99% below the sector average0.99% below the sector average0.99% below the sector average0.99% below the sector average0.99% below the sector average
Income
5.93% below the market average5.93% below the market average5.93% below the market average5.93% below the market average5.93% below the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Growth
40.47% above the market average40.47% above the market average40.47% above the market average40.47% above the market average40.47% above the market average
26.00% above the sector average26.00% above the sector average26.00% above the sector average26.00% above the sector average26.00% above the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 2
Sell 0
Strong Sell 0
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Ricardo Dividends

  Latest Previous
  Interim Final
Ex-Div 14-Mar-24 02-Nov-23
Paid 11-Apr-24 24-Nov-23
Amount 3.80p 8.61p

Trades for 28-Mar-2024

Time Volume / Share Price
16:38 20,000 @ 447.50p
16:35 5,399 @ 457.00p
16:35 8 @ 457.00p
16:35 116 @ 457.00p
16:35 567 @ 457.00p

Ricardo Key Personnel

CEO Graham Ritchie

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