Interim Results - 6 Months to 31 December 1999

Ricardo PLC
28 February 2000

                                  Ricardo plc
          Interim Statement for the six months ended 31 December 1999
                                       
                                  HIGHLIGHTS
                                       
Ricardo plc is the UK's leading independent automotive and powertrain
engineering consultancy.  Ricardo is a constituent of the FTSE techMARK 100.


*  Turnover up 20% to £54.2m (£45.1m)

*  Profit before tax up 25% to £5.6m (£4.5m)

*  Increase in earnings per share of 24% to 8.4p (6.8p)

*  Interim dividend of 2.4p (2.3p)

*  Order book up 17% to £41m (£35m)

*  US business continues to show improved performance


Commenting on the interim results, Rodney Westhead, Chief Executive of
Ricardo plc said:-

'I am pleased to report another strong performance for the first half.   Our
order book is in a healthy position, showing a 17% increase on levels of 12
months ago.  The outlook remains encouraging and I am confident that the
overall performance of our business will continue to improve in the second
half of the financial year. Looking ahead we expect to see continuing double
digit profit growth.'

Enquiries:-

Ricardo plc
Rodney Westhead, Chief Executive             Today:         0171 457 2345
Andrew Goodburn, Finance Director            Thereafter:     01273 455611

Gavin Anderson & Company                     Tel:           [phone]
Marc Popiolek
Laura Hickman



Website:  www.ricardo.com
                                      
                                        
                                       
                             CHAIRMAN'S STATEMENT





Overview

The trading results for the six months to 31 December 1999 show an overall
increase in turnover of 20% to £54.2m. Profits before tax increased by 25% to
£5.6m.  The increased profits coupled with a steady tax rate resulted in the
earnings per share increasing by 24% to 8.4p.

The order book has continued to improve across the Group to £41m compared with
£35m 12 months earlier.


Dividend

An interim dividend of 2.4p (1998: 2.3p) will be paid on 28 April 2000 to all
shareholders on the register at the close of business on 24 March 2000.


Operations

Continuing growth in turnover in the UK and USA, with our subsidiaries working
closely together, has resulted in a satisfactory first half with a further
overall improvement in net margin to 10.4% (1998 - 10.0%).  Ricardo Test
Automation, which started the year with a low order book, is now trading
satisfactorily.  Within our US subsidiary, business confidence is growing and
further investment in management, test cells and premises have been authorised
to support a growing, profitable order book.


Europe

In Germany, the first office has been established in Stuttgart. Initial
contact has been made with German OEMs and the first orders have been taken.

In Prague, in the Czech Republic, a satellite office has been established to
take advantage of the competitively priced technical resources currently
available in that country.


Strategy

Our strategy, which is to provide consultancy and technical support for the
engine, transmission and vehicle engineering sectors of the automotive
industry, remains unchanged. Within that strategy, we continue to promote and
recruit high calibre engineers, support relevant continuing R&D programmes and
invest in additional facilities at all of our main sites.


Prospects

We remain confident that the overall performance of our business will continue
to improve in the second half of the current financial year.


                     CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                       
          Interim Statement for the six months ended 31 December 1999
                                       


                        Six months ended Six months ended     Year ended
                             31 December      31 December        30 June
                                    1999             1998           1999
                                                                    
                                                         
                                   £'000            £'000          £'000
                                                                        
Turnover                          54,199           45,132         95,489
                            ------------     ------------   ------------
Operating Profit                   5,809            4,742         10,882
Net Interest                       (199)            (241)          (457)
                            ------------     ------------   ------------
Profit on ordinary                                                      
activities before                                                       
taxation                           5,610            4,501         10,425
Taxation                         (1,683)          (1,350)        (3,206)
                            ------------     ------------   ------------
Profit for the                                                          
period                             3,927            3,151          7,219
Non-equity                                                              
preference                           (2)              (2)            (3)
dividends                   ------------     ------------   ------------
Profit                                                                  
attributable                                           
to ordinary
shareholders                       3,925            3,149          7,216
Equity ordinary                               
dividends                         (1,147)          (1,068)        (3,261)
                            ------------    -------------   ------------
Amount transferred                                                      
to reserves                        2,778            2,081          3,955
                            ------------     ------------   ------------
Dividend per                                                            
ordinary share                      2.4p             2.3p           7.0p

Basic earnings per                                                      
ordinary share                      8.4p             6.8p          15.5p

Diluted earnings                                                        
per ordinary share                  8.0p             6.5p          14.9p

All results                                                             
relate to
continuing
activities



Notes:

1    This interim Statement should be read in conjunction with the Report and
     Accounts for the year ended 30 June 1999.

     The accounts for the six months ended 31 December 1999 and 31
     December 1998 respectively are neither audited nor reviewed. The abridged
     accounts for the year ended 30 June 1999 do not constitute statutory
     accounts within the meaning of section 240 of the Companies Act 1985 and
     are an extract from the latest published accounts which have been
     delivered to the Registrar of Companies and on which the auditors gave an
     unqualified audit report.


2    Taxation

     The tax charge for the period has been calculated as 30% (1998 - 30%)


3    Earnings per share

     The calculations of basic earnings per ordinary share and diluted
     earnings per ordinary share have been made in accordance with FRS14 and
     the comparatives for the six months ended 31 December 1998 have been
     adjusted accordingly.
     
     The basic earnings per ordinary share has been calculated by dividing the
     profit attributable to ordinary shareholders of £3,925,000 (1998 -
     £3,149,000) by the weighted average number of shares in issue of
     46,975,107 (1998 - 46,423,511).  The calculation of the average number of
     shares in issue has been made having deducted the shares held by the
     Employee Share Ownership Trust and the Long Term Incentive Plan Trustee.
     
     The diluted earnings per ordinary share has been  calculated by dividing 
     the profit attributable to ordinary shareholders of £3,925,000 (1998 -
     £3,149,000) by the adjusted weighted average number of shares in issue.  
     This latter figure has been calculated by adjusting the shares in issue  
     of 46,975,107, as described above, to take account of the effect of the  
     diluted securities of share options and the Long Term Incentive Plan, to 
     give an adjusted total of 49,026,626 shares in issue (1998 - 48,169,721).
     
                           SUMMARISED BALANCE SHEET
                                       
          Interim Statement for the six months ended 31 December 1999
                                       
     
                             As at               As at                 As at
                       31 December         31 December               30 June
                              1999                1998                  1999
                             £'000               £'000                 £'000
                                                                            
Fixed assets                39,211              31,879                36,671
                     -------------        ------------          ------------
Stock and                                             
debtors                     39,407             33,288                34,770
Creditors                                                                   
falling due              
within one
year                       (36,205)            (30,691)              (32,046)
                       ------------        ------------           -----------
                             3,202               2,597                 2,724
Cash deposit                   340                 340                   340
Net bank balance             1,105               (556)               (1,952)
                      ------------        ------------           -----------
Net current assets           4,647               2,381                 1,112
                      ------------        ------------           -----------
Total assets less                                                             
current liabilities         43,858              34,260                37,783

Creditors                                                                   
falling due
after more than
one year
Bank borrowings            (4,188)             (1,995)               (1,775)
Other                          (5)               (107)                  (51)
                        ----------          ----------            ----------
                           (4,193)             (2,102)               (1,826)
Provisions for                                                              
liabilities and                                                             
charges                    (4,651)             (2,957)               (4,579)
                      ------------         -----------            ----------
Net assets                  35,014              29,201                31,378
                      ------------       -------------            ----------
Called up share                                                             
capital and                                                                 
share premium account       17,348              16,127                16,395
Long term                                                                   
incentive plan reserve         882                 279                   635
Reserves                    16,784              12,795                14,348
                        ----------          ----------            ----------
Shareholders'               
funds                       35,014              29,201                31,378
                        ----------          ----------            ----------

These accounts were approved by the Board of Directors on 28 February 2000

This announcement is being circulated to all shareholders of the Company, and
copies will be available to the public at the Company's Registered Office at
Bridge Works, Shoreham-by-Sea, West Sussex, BN43 5FG
     
                                       
                       CONSOLIDATED CASH FLOW STATEMENT
                                       
          Interim Statement for the six months ended 31 December 1999
                                       
                                       
                                       
                    Six months ended     Six months ended           Year ended
                         31 December          31 December              30 June
                                1999                 1998                 1999
                       £'000   £'000  £'000         £'000   £'000        £'000
                                                                             
Net cash                                                                     
inflow from                                                                  
operating activities           9,005               9,675               18,218
Interest paid          (398)          (353)                (366)             
Dividends paid                                                               
on non-equity
shares                   (2)            (1)                  (3)
                      ------         ------               ------
                                                       
Net cash                                                                     
outflow from                                                                 
returns on                                                                   
investment                                                                   
and servicing                 ------              ------               ------
of finance                     (400)               (354)                (369)
 
                                                                             
Taxation                       (228)               (411)              (1,700)
                                                                             
Capital                                                                      
expenditure
Purchase of                                                                  
tangible fixed                                                  
assets               (6,188)          (5,942)              (13,260)
                            
Sale of                                                       
tangible 
fixed assets            415             137                    159       
                     -------  ------  ------     -------     ------   -------
                              (5,773)            (5,805)             (13,101)
                                                                          
Equity                                                                       
dividends paid                (2,207)            (2,044)             (3,114)
                                   
                                                                             
Financing                                                                    
Issue of                                                                     
ordinary                           
share capital          302              43                    311
Proceeds from                                                                
ESOP share               
options                 -                -                    127
Purchase of                                                                  
own shares              -                -                   (328)

Capital                                                                      
elements                                                        
of finance                                        
lease rental
payments                (61)           (53)                 (102)
Loans repaid         (2,534)          (219)                 (192)             
                    --------  ------  -----      ------     ------    -----   
                              (2,293)              (229)               (184)
(Decrease)/                                                                  
increase in cash              (1,896)                832               (250)
                              -------           --------             -------
                              
                                       
                                       
                      NOTES TO THE CONSOLIDATED CASH FLOW
                                   STATEMENT
                                       
                                       
                                       
                             Six months        Six months               Year  
                                  ended             ended              ended  
                            31 December       31 December            30 June  
                                   1999              1998               1999
                                  £'000             £'000              £'000
Reconciliation                                                               
of net
cash flow to
movement in net
debt
(Decrease)/increase                                                           
in cash                         (1,896)              832                (250)
Increase /                                                                   
(decrease)                                                                   
in debt and lease               
financing                         2,725              272                 (55)
New finance leases                    -              (17)                (18)
Translation difference             (124)              14                  295
                             -----------      -----------         -----------
Movement in net                                                              
debt in                                                                      
period                              705            1,101                 (28)
                                                                             
Net debt at                                                                  
beginning of                                                                 
period                          (3,899)          (3,871)              (3,871)
Net debt at end                                                              
of period                       (3,194)          (2,770)              (3,899)
                             ----------     ------------         ------------
Reconciliation                                                               
of operating
profit to net
 cash inflow
from operating
activities
                                                                             
Operating profit                  5,809            4,742               10,882
Depreciation charges              3,227            2,568                5,047
(Gain)/loss on                                                               
sale of tangible                                                             
fixed assets and                                                              
investment
properties                         (12)                -                    2
Long term                                                                    
incentive plan charge               247              267                  623
Provision for                                                                
diminution in value of                                                        
investment properties                30                -                  235
(Increase)/decrease                                                           
in working captial                 (296)           2,098                1,429
                            -----------     ------------          -----------
                                  9,005            9,675               18,218
                            -----------      -----------           ----------