Ricardo trading in line

Engineering consultancy Ricardo said trading has continued to plan, with progress across most of the firm.

The group, which provides technical and strategic consulting, manufacturing, assembly and software sales, said it remains confident of further progress both in the half and full year.

UK operations within technical consulting have continued to secure a good stream of business as it works on existing multiyear programmes with key UK clients.

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Meanwhile more work has been secured in Japan and the pipeline of activity continues to build in China where starter programmes have been won which should lead to multiyear programmes, the group explained.

On a cautious note, it added that mainland Europe remains benign although work from a large engine client and a Chinese motorcycle manufacturer is offsetting the reduction in test bed revenue in the German division.

Its US division has maintained its strong order book position built earlier in the financial year.

Otherwise the recent acquisition of AEA Europe is delivering to plan, both in terms of trading performance and the integration into the wider Ricardo business.

The performance products business continues to be busy with high levels of motorsport activity including further Bugatti transmission orders.

Ricardo said it closed the end of December with only marginal net debt balance and a strong balance sheet despite its recent acquisition.

CEO Dave Shemmans commented: "We are encouraged by our solid order book and pipeline, as well as the continued progress in implementing our strategic growth plans, including diversification into neighbouring market sectors. We remain confident of further progress both in the half and full year."

CJ