Ricardo Share Discussion Threads

[norbert colon] 16/8/2022 17:36

I should have added that the niche manufacturing businesses of RCDO do not make them a natural fit for a typical consultant in the E&E sector, however, it will be interesting to see what other divestments (if any) the Group make over the coming months as they deliver on their new strategy.

An attendee at the recent CMD raised this question re: the Defense business iirc but mgt confirmed that this business was still aligned with their strategy.

[tenapen] 16/8/2022 12:33

Good luck All.

[Hopefully] happy days ahead.

[ingham87] 16/8/2022 12:26

Great post thanks Norbert

[norbert colon] 16/8/2022 11:52

Hi Tenapen and other posters

I am a new investor to the Group and thought i'd jot down a few points for discussion as i'm a big fan of the engineering/environmental/energy consulting sector having worked in the sector myself since 1990.

Although I've been aware of Ricardo for a few years, for some reason i've never looked at them, probably as they are not a pure-play consultant and hence their profile is somewhat under the radar compared to peers such as RPS, WSP, AECOM, Atkins etc.

Having just partially exited from my investment in RPS (built up from 2019 right through to July 2022), I was reminded by another investor of RCDO and duly watched the CMD presentation from May and came away suitably impressed enough to make an initial investment.

I assume other investors are aware of the considerable M&A activity in this sector over the last 10-20 years with RPS alone having made 85 acquisitions over this period with larger peers such as WSP and TetraTech being equally as acquisitive.

Listed consultants who have succumb to M&A include WSP, Atkins, WYG, Sweett Group, Hyder, RPS and Waterman. Private deals are considerable more numerous.

Liberum recently produced a note (02/08/2022) including a peer group comparison table showing the disparity between the valuations of RPS and RCDO against their (admittedly larger) peers.

RPS has since been acquired for just over 1 x sales (PE25) and this multiple is inline with other deals i've tracked. ERM acquired KKR in 2021 for 3.75 x sales but this is an outlier in valuation.

With the new Group strategy defined with a clear focus on the E&E sector which is facing some fantastic tailwinds, the current valuation of RCDO of 0.75 x sales (PE12) seems anomalous and whether we see M&A activity or not, I have an initial 600p+ valuation on the Group and look forward to the results in Sep followed by the AGM in November where hopefully some other investors will also be in attendance!

[ingham87] 15/8/2022 20:34

A great business with heritage. Lots of legs in this one

[tenapen] 10/8/2022 17:32

Welcome Norbert, I'm looking forward to reading your posts here.


Website Updated;

[norbert colon] 10/8/2022 13:00

https://www.linkedin.com/posts/paul-hill-a5994116_singer-capital-markets-monthly-macro-update-activity-6963076334847725568-pLppI've started a position here over the last 2 days and look forward to contributing more to this board over time

[tenapen] 05/8/2022 15:54

Ricardo Quarterly Summer 2022

Critical thinking about critical infrastructure: the economic and social cost of disruption to key systems and the opportunities that can emerge

Small islands, big impacts: how islands around the world are building a more resilient future

Water – a deep dive: the global issues around the supply, treatment, storage and transportation of our most precious resource

Buildings for the future: Ricardo’s Sujith Kollamthodi describes his own domestic decarbonisation agenda

Bespoke batteries: Ricardo is leading the way in niche vehicle battery solutions

The big picture: London’s Elizabeth Line is one of the largest and most complex assessments ever performed by Ricardo Certification

A view from: Richard Scotney of the World Wildlife Foundation on how best to increase energy security

This much I know: Ricardo’s Chief Engineer Dragica Kostic-Perovic explains why bringing more women into engineering is vital for the future of the profession

A day in the life: why diversity, equity and inclusion must be at the heart of every workplace

Ricardo news: latest developments from around the global Ricardo organisation, including a major certification contract in Toronto and completion of a hydrogen fuel cell bus demonstrator

[tenapen] 02/8/2022 07:25

Explains the recent strength in the share price

[ingham87] 02/8/2022 07:23

Nice little update, great company this

[tenapen] 01/8/2022 17:55

Website Updated;

[tenapen] 26/7/2022 12:52

Hi Indiestu,
Just here posting the news..... but yes nice and steady wins the race.



Also today

[indiestu] 26/7/2022 07:38

Good morning Ten, this is a lonely board indeed! A very nice trading update this morning. Onwards and upwards, hopefully the price can break the magic £5 ceiling this year. Enjoy.

[tenapen] 18/7/2022 16:21

Website Updated;

[tenapen] 14/7/2022 18:12

Website Updated;

[tenapen] 12/7/2022 12:06

Website Updated;

[tenapen] 28/6/2022 17:40

Jun 27, 2022 - 05:24 pm
Ricardo to offer H2 fuel cell retrofit for diesel buses

Ricardo has partnered with Stagecoach North East to retrofit a diesel, double decker bus with a hydrogen fuel cell propulsion system. Ricardo is seeking to offer the hydrogen fuel cell retrofitted vehicles at around half the price of a new bus.

Cont...

[indiestu] 28/6/2022 15:58

My theory for what it matters. Hydrogen has become a buzz word. There are many companies out there trying to make or process hydrogen into power. You will likely have lost money if you took a share in any of these companies. The big problem with Hydrogen is how to deliver it to the place you need it. My read on Ricardo is that they are trying to position themselves within the Hydrogen market but they are not spending huge amounts of capital building the next electrolyser or fuel cell. They are carefully engaging in the Hydrogen distribution market. Providing consultancy but not expending capital. The transition to hydrogen requires a complete rethink of how this gas can be distributed and Ricardo are at the cutting edge.

[tenapen] 26/6/2022 18:06

Under header - Website Updated

I think being an all inclusive company does make RCDO a better company.

As to a more profitable company ! thats not down to one person but team work.

My opinion only.

[blue377] 25/6/2022 09:13

Tenapen
Cant quite work out what the above update has to do with making Ricardo a better more profitable Company.

[tenapen] 24/6/2022 18:31

Website Updated;

[tenapen] 22/6/2022 20:10

Website Updated;



Another great read from Ricardo.

[tenapen] 16/6/2022 19:05

Website Updated;

[tenapen] 14/6/2022 20:01

Website Updated;

[tenapen] 06/6/2022 20:11

Website Updated;