Ricardo (RCDO) Trading Update summary

Strategic transformation and portfolio focus

• Completed acquisition of E3 Advisory, expanding Energy and Environment business and presence in Australia.

• Disposed of Defense business, optimizing cash and accelerating transition to environment and energy solutions.

Operational performance and order intake

• Order intake for continuing operations rose 10% (11% at constant currency) for H1 2024/25, with order book up 2%.

• Reported revenue increased by 1% (2% at constant currency) year-to-date.

• Energy and Environment saw strong order growth but H1 revenue and profit impacted by order phasing and macro uncertainties.

• Rail performed well in Asia, but California High Speed project deferred due to wildfires, affecting H2.

• Automotive & Industrial maintained profit momentum; Performance Products grew revenue and profit, aided by a large framework agreement.

Financial position and cash flow

• Net debt reduced to £18.5m at 31 Dec 2024 from £59.6m at 30 Jun 2024, reflecting Defense disposal proceeds.

• Cash conversion declined due to delayed R&D tax receipts, increased working capital in Defense, and extended invoicing on large projects; improvement expected in H2.