Ricardo PLC's (LSE:RCDO) shares tumbled 18% in the first hour of trading after the company warned that delays in orders would hit full-year results.
The engineering and environmental consultancy said revenue and profit would fall short of market expectations for 2024/25, despite expecting stronger performance in the second half.
The energy and envronment division was hit by election-related delays and slower UK water industry spending, while California’s High-Speed Rail project deferment affected the rail business.
Automotive and Industrial continued to grow, but fluctuating demand for emerging technologies weighed on the outlook.
Ricardo recently sold its defense business for £64.3 million and acquired Australia’s E3 Advisory, but lower sales of defence braking kits led to weaker results. Net debt fell to £18.5 million from £59.6 million in June. The company expects order delays to ease in the next financial year.
The stock was off 63.7p at 288.3p.