Ricardo plc (LON: RCDO) slipped more than 3% to 220p in early Tuesday trading after the engineering and consultancy firm reaffirmed its full-year outlook but flagged ongoing market uncertainty and currency volatility.
In a trading update, the company said it expects to trade within the range of analyst forecasts for FY24/25, with 91% of its consultancy net revenue already secured.
However, recent market turbulence has led to order and currency volatility, prompting the firm to implement additional cost-cutting measures to maintain its performance.
The company, which is undergoing a strategic transformation towards environmental and energy transition solutions, reported strong cash conversion in the second half, anticipated to materially exceed its medium-term target.
Cash conversion across FY24 and FY25 is expected to surpass 85%, and net debt is seen falling towards the lower end of guidance, excluding restructuring costs.
Despite positive developments in key business segments—such as major contract wins in the Energy & Environment and Rail divisions—investors appeared cautious amid wider macroeconomic concerns.
Chief Executive Officer Graham Ritchie said: “Despite the increased global and market uncertainty in the last few months… Ricardo continues to transform its portfolio, leading to a simpler, more efficient business with higher growth and higher margins.”
The company also reiterated its target of at least £10 million in incremental cost savings for FY25/26 and confirmed strong revenue visibility across all its core divisions.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading and investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
- XTB UK regulated by the FCA – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY