- Engineering company Ricardo warned it expected its underlying annual profit to more than halve after the Covid-19 pandemic hit its automotive business.

Underlying pre-tax profit was seen coming in at between £15m to £16m, down from £37.0m on-year.

Revenue was 'in excess of £350m', compared to £384m on-year.

Ricardo said its energy & environment, defense and rail businesses were less impacted and all delivered an increase in profits.

It said the overall decline in profit was a result of the lower revenue, time required to reduce headcount in light of the lower revenue and reduced efficiency.

Ricardo said it had entered the new financial year with a reduction in its cost base of more than £10m per annum.

'Given the ongoing uncertainty we do not believe it is appropriate to provide guidance for the year ending 30 June 2021, albeit current expectations are that profit and cash performance will be weighted towards the second half of the new financial year,' the company said.

At 10:00am: [LON:RCDO] Ricardo PLC share price was -9p at 337.5p

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