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Ricardo PLC on Tuesday said it expects to deliver full-year results in line with analyst expectations despite increased global and market uncertainty. The Shoreham-by-Sea, England-based environmental and engineering consultancy said its confidence is supported by the high level of revenue already secured and its sales pipeline. Nonetheless, Ricardo said ‘significant’ market uncertainty in recent months, has ‘created short-term order and currency volatility’. As a result, it has identified additional cost actions which are expected to achieve at least an incremental £10 million of cost savings in financial 2026 to those being delivered in financial 2025. Further, Ricardo said cash conversion in the second half of financial 2025 is expected to ‘materially’ exceed the company’s medium-term target. Taken together, cash conversion from continuing operations in the two years to June 30 2025 is expected to be above 85%. Full-year net debt is expected to be towards the lower end of analyst guidance and the board is confident of remaining compliant with its leverage and interest cover covenants, the company said. Chief Executive Graham Ritchie said performance reflects the ‘continued focus on prioritising growth in resilient end markets, delivering an efficient cost base and focused cash management’. Ritchie said the company continues to transform to a ‘simpler, more efficient business with higher growth and higher margins which will create significant value for all shareholders.’ ‘We have a clear strategy, underpinned by targeted cost savings in the short term, and a focus on resilient services and markets for value creation in the medium term,’ he added. In recent weeks, shareholder Science Group PLC has repeatedly criticised Ricardo’s financial performance and demanded governance change. Science Group had a stake of just over 20% in Ricardo as of early April. Shares in Ricardo were 3.1% lower at 220.00 pence each in London on Tuesday. Shares in Science Group were 1.1% lower at 410.50p. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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