Ricardo's (RCDO) full-year figures precipitated a double-digit share price rise as investors responded to an 18 per cent increase in like-for-like orders and a 30 per cent rise in underlying earnings. The group continues to expand and diversify operations beyond its historic automotive base, but even when you disregard the effect of acquisitions, organic revenues at £274m were still 7 per cent in advance of the previous full-year.
Nevertheless, Ricardo continues to scale up through suitable bolt-on acquisitions. The group augmented its consultancy services, adding expertise in the rail and water markets through deals to acquire Lloyd's Register Rail and Cascade Consulting. And subsequent to the period-end it brought Motorcycle Engineering Italia within the fold; a business formed from the operating assets and employees of vehicle design house Exnovo.