Sep 21st 2012 - Edison Investment Research today published a report on Ricardo (RCDO.L, LSE:RCDO, LON:RCDO) entitled "Still Jam Tomorrow". In summary, the report says:
Management appears more optimistic than it was four months ago, and continues to highlight the long-term potential from a more robust business profile. However, Ricardo still faces a number of challenges (eg Germany and Strategic Consulting) and the growth the company talks about is not yet reflected in reported results. FY12 revenue increased just 0.5% to £197.4m, the order book was flat at £107m and operating cash flow declined. PBT increased by 14% to £17.6m, but half the improvement came from a lower pension charge. Strategic repositioning is having a positive impact overall and medium-term fundamentals remain favourable, but there appears limited scope for the valuation to increase versus its peers.
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