Ricardo PLC on Tuesday said full-year trading was in line with board expectations, with good increases in new order levels and a reduction in net debt.

The Shoreham-by-Sea, England-based company reported growth in order intake of over 20% at around £430 million from the year prior. Ricardo expects to enter the new financial year with an order book of around £340 million, which is 15% higher than the year before.

Further, the company reduced its net debt to £35 million as at June 30 from £47 million a year before. Ricardo said strong cash generation was achieved through working capital management and profits made during the year.

The engineering consultancy company acquired Inside Infrastructure, an Australia-based consulting company, for £5 million in March.

The automotive & industrial arm returned to profit while the energy & environment was supported by contract winds. Revenue for the rail segment was ‘slightly down’ on the prior year as a result of market conditions and long-term projects nearing completion, though order intake increased.

Ricardo’s defence segment saw double-digit revenue growth as it secured a ‘good level’ of orders, which included a £19 million order from the US Army for its Antilock Brake System/Electronic Stability Control retrofit kits, a safety anti-skid breaking system.

Chief Executive Officer Graham Ritchie said: ‘I am delighted that, over the course of the year, we have continued to deliver in line with our expectations. We have made significant progress in [the financial year], delivering a very good financial performance with increased order intake across all our business segments and a strong operating cash conversion’.

Shares in Ricardo were down 0.1% at 403.80 pence in London on Tuesday.

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