Final Results

Ricardo PLC
24 September 2001

                                                             24 September 2001


                                 Ricardo plc
         Preliminary Results for the twelve months ended 30 June 2001

HIGHLIGHTS

Ricardo plc is the UK's leading independent automotive consultancy, employing
over 1,400 people and has technical centres in the UK, USA, Germany and the
Czech Republic.   The company's client list includes all the world's major
OEMs. Ricardo is a constituent of the FTSE techMark 100.

*         Record results for fourth consecutive year

*         Profit before tax up 18% to £15.1m (2000: £12.8m)

*         Turnover up 15.5% to £139.9m (2000: £121.1m)

*         Basic earnings per share up 17.5% to 22.2p (2000: 18.9p)

*         Order book at record levels - up 33% to £59m

*         Dividend up 5% to 7.8p

*         Ricardo's involvement with BMW's new MINI a major success


Commenting on the results, Rodney Westhead, Chief Executive said:

'This has been another good year for Ricardo. We start the year with our order
book at record levels. We are seeing good performance across the business and
have been delighted with our involvement in BMW's new MINI. In these uncertain
times, our level of confidence in the future remains high.'

Further enquiries:

Ricardo plc                              (today) 020 7457 2345
Rodney Westhead, Chief Executive    (thereafter) 01273 455611
Andrew Goodburn, Finance Director

Gavin Anderson & Company
Laura Hickman/Charlotte Stone                    020 7457 2345

Website: www.ricardo.com

Chairman's Review

Review of the Year

It has been another good year for your company in all respects. We have
continued to broaden our order book across the international automotive
industry. Our consulting services are increasingly being utilised by the major
car manufacturers as they endeavour to develop new model ranges which satisfy
the ever more demanding environmental legislation, in a very competitive
market place.  Our concentration on our core strengths of providing
consultancy services to the automotive industry has ensured record profits for
the fourth consecutive year.

Last year I reported the award of a major contract from BMW for the new MINI
project. I am pleased to report this year that the first stage of the project
has been successfully completed thus enabling our customer to achieve a highly
successful launch of the new range in July this year. Once again we were
delighted to have been associated with the Audi success at Le Mans, where
their two cars, both fitted with Ricardo transmissions, finished first and
second. We continue to invest in new facilities, with capital investment
totalling over £13million. Of particular note this year was the commissioning
of a new transmission testbed and the establishment of the new Vehicle
Engineering Division at Leamington.

Annual Results and Dividend

Profit before tax was £15.1m compared with £12.8m last year. Turnover
increased to £139.9m from £121.1m. Earnings per share increased by 17.5% to
22.2p from 18.9p. Efficient cash management during the year and the sale of
Ricardo Test Automation produced a cash inflow of £5.6m, consequently
achieving a net cash balance of £1.3m at the end of the year.

Your Board is recommending an increase in total dividend to 7.8p per share
compared with 7.4p last year. This dividend is covered 2.8 times compared with
2.5 times in 2000.

Strategy

We continue to believe that the focus of attention to offer engineering
consultancy services to the automotive and related industries represents the
best strategy for your company. To this end, we withdrew from the capital
goods market by selling Ricardo Test Automation Limited, our company in
Worcester, making test equipment, to Schenck, a world leader in this field.
Subsequent to the disposal we have established a joint venture with Schenck
thus enabling us to continue to exploit our capability to develop software for
a broad range of test equipment offered by Schenck.

We are successfully adopting a policy of co-operating with a selected number
of major players in the international automotive industry to better exploit
Ricardo's intellectual property.

The decision to concentrate our vehicle engineering activities into one
division is paying off, enabling us to provide a more efficient comprehensive
service to our customers.


People

Once again I am indebted to all our employees for the contribution they have
individually and collectively made to another successful year. In parallel
with the maintenance of standards of excellence in our technical capability,
we have increased our effort to improve the management skills so that we are
better able to respond to the increasing demands placed on us by our
customers.

On the 1 January 2001, we appointed two new executive directors to the Board.
Mr Christopher Bates is the Managing Director of Ricardo Consulting Engineers
at Shoreham and Mr Jeremy Holt, is the President of our US subsidiary Ricardo
Inc.

Prospects

It is too early to consider the effect of recent events in the USA on
Ricardo's business.  However, at this point in time we believe it appropriate
that our level of confidence in the future remains high.

We believe that we can maintain our record of profitable growth for the
foreseeable future.


Sir Noel Davies
24 September 2001


Chief Executives Review

Ricardo Market Place

I am most pleased to report record results for the fourth consecutive year
despite an increasingly difficult time for the automotive industry.  Falling
volumes of vehicle sales and generally poor results from the automotive
manufacturers and tier one suppliers have resulted in their budgets being
reduced, but Ricardo is pleased to report that we start the new year with a
record order book and we continue to view the future with optimism.

The need for new models and emissions legislation continues to drive engine
and vehicle development. Our expertise in these areas is well regarded in the
automotive industry, is of considerable interest to our customers, and a
significant factor in developing new orders.

The industry has seen an acceleration of the trend to globalisation with
European, North American and Japanese units working together as one
organisation, each taking responsibility for a particular area of expertise
e.g. diesel or gasoline engines and large or small vehicle platforms to avoid
duplication and drive down cost.  In Japan this is leading to a growing
interest in outsourcing.  Increasingly the vehicle companies use outsourcing,
which reduces the need for fixed cost development teams, as a further means of
driving down cost and gaining access to Ricardo technology.  This growth in
outsourcing enables Ricardo to continue its steady growth despite the
difficulties facing the industry at this time.

In taking on major development contracts, Ricardo cannot only remove fixed
cost but also delivers programmes more rapidly by being a smaller, nimbler
organisation whilst still working to the customer's quality standards.  The
beneficial effect for our customers of getting a new major vehicle development
to market six months early can be measured in hundreds of millions of pounds
of additional revenues.

Our operations in the United States continue to play an important part in the
growth of Ricardo and will, in common with our businesses in Europe, work on
major new engine programmes together with advanced technology projects for our
largest customers. We continue our efforts to expand our continental European
business, in particular Germany where our search for an appropriate
acquisition continues.  We are also looking for suitable collaborative
partners in Japan to enable Ricardo to best exploit the steady move to
outsourcing in this market being brought about by the increasing influence of
European and North American management.

As stated in our Interim Report we have now sold Ricardo Test Automation
Limited to Schenck, a part of Durr Group of Germany and subsequently we have
entered into a joint venture with Schenck for the development and marketing of
test systems and software.  We have now announced the inclusion of Horiba of
Japan in this joint venture as a third partner.  Horiba is the world leader in
gas analyser systems for the automotive industry and will add to the industry
standing of the joint venture and Ricardo's ability to develop in Japan.

Business development

This past year has seen the final development and launch of the new MINI where
Ricardo played a significant part in the powertrain development, installation
and calibration.  We were delighted to be able to undertake this assignment
which has also speeded up the development of our Midlands Technical Centre and
further developed our involvement with a major German car company.  We are in
the process of opening a small Munich office, the home of BMW, to facilitate
further work on the MINI and other projects.

On January 1st 2001 we announced the setting up of Ricardo Vehicle Engineering
(RVE) at our Midlands Technical Centre (MTC), bringing together the vehicle
strengths of Ricardo Consulting Engineers (RCE) and MTC.  Vehicle engineering
includes such technologies as crash, weight reduction, noise and vibration,
the integration of engine in to vehicle and ride and handling.  The former MTC
business is now Ricardo Driveline and Transmissions Systems (RDTS).  Therefore
we now have three clear areas of specialisation, namely RCE for engines, RVE
for vehicle and RDTS for transmissions.  This clear focus is assisting our
marketing, service development and recruitment.  However, where client focus
is necessary these businesses work seamlessly together.  Two new transmission
test cells, for developing and testing both four wheel drive and two wheel
drive have now been commissioned together with a chassis dyno (rolling road)
at the Midlands Technical Centre.  These facilities are some of the very best
in Europe and back up the high quality work and development programmes carried
out by Ricardo.

RDTS was rewarded with a second 'First - Second' victory at Le Mans with their
transmission in the Audi race car. In Formula 1 five of the leading teams have
acquired Ricardo software to improve performance.  Our successful involvement
in motor sport, a £4 billion industry in its own right, is not only profitable
but also provides an excellent showcase for our skills when so much of our
work remains highly client confidential.  We see this as an area of increasing
importance to Ricardo going forward.

Technology

Each year, primarily at RCE the centre of our research and development, we 
expend a significant amount of money on research and development - £5.3m in
2001.  The benefits of this are seen in our net margin, our growth in the
current harsh economic climate and our expanding customer base.  Greater
internal emphasis is now being given to patent protection and the subsequent
exploitation of patents.  This year we have benefited directly from the sale
of intellectual property to one of the leading automotive groups, we expect to
benefit from this over a three year period.  We are also seeking to market
other technologies developed by Ricardo and thereby further benefit from our
intellectual property.

We are currently developing a research demonstrator vehicle that will
initially show-case our work on 42 volt systems, integrated starter motor
generators, supervisory electronic control systems and a small very high
output diesel engine circa 65 KW per litre compared to current industry norms
of 55KW per litre.  This technology demonstrator was shown at the second
Ricardo Automotive Conference, June 2001, and is planned to be available for
test driving by our customers in the late autumn of 2001.  Developments for
this vehicle next year may include a dual clutch automated manual
transmission.  Technology demonstrations are an excellent means of selling our
capabilities to our customers.  We are also involved in a number of hybrid
vehicle assignments for customers, current hybrid vehicles are the Honda
Insight and Toyota Prius.  We continue to develop our fuel cell modelling
capabilities.

One of our major areas of development is electronics and electrical systems,
which affect every aspect of the vehicle engine and transmission.  We have
made a number of senior level appointments in this area in the last year and
expect to continue this development.  Electronics continues to be one of the
fastest growing areas of vehicle developments.

People

In the past year our staff numbers have increased by approximately 100 and we
now have nearly 400 people in the United States, a formidable team to tackle
this demanding market.  At RCE, the centre for all our engine based technology
and client programmes, significant emphasis has been given to our electrical
and electronics capability, an area of continuing rapid growth in the
automotive industry.

Our graduate recruitment this autumn is at a record level with 66 expected
starters (2000 - 50).  The recruitment of highly capable professional
engineers, technicians and support staff continues to be a priority as we grow
and become evermore international in our make up.  The large number of staff
working overseas on major programmes at customers' sites also increases.

I would like to give my thanks to all the staff who devote so much of their
time and energy and expertise, often with large periods away from home, for
the continued success of Ricardo.

R J Westhead
24 September 2001.


Consolidated Profit & Loss Account
for the year ended 30 June 2001

                                                                   2001    2000
                                                        Notes     £'000   £'000
Turnover                                                    2
Continuing operations                                           138,370 117,376
Discontinued operation                                            1,541   3,731
                                                                139,911 121,107
Operating Profit
Continuing operations                                            15,681  13,125
Discontinued operation                                               10      16
                                                                 15,691  13,141
Profit on disposal of discontinued operation                          -       -
Net interest                                                      (584)   (341)

Profit on ordinary activities before taxation                    15,107  12,800
Taxation on profit on ordinary activities                       (4,277) (3,860)

Profit on ordinary activities after taxation                3    10,830   8,940
Equity minority interest                                          (187)    (17)

Profit for the financial year                                    10,643   8,923
Non - equity preference dividends                                   (2)     (4)

Profit attributable to ordinary shareholders                     10,641   8,919
Equity ordinary dividends                                       (3,753) (3,534)

Amount transferred to reserves                                    6,888   5,385

Basic earnings per ordinary share                           5     22.2p   18.9p
Diluted earnings per ordinary share                         5     21.6p   18.4p

There is no difference between the profit on ordinary activities
before taxation and the profit for the financial year, stated above,
and their historical cost equivalents.


Consolidated Balance Sheet
as at 30 June 2001
                                                               2001     2000

                                                              £'000    £'000

Fixed assets
Intangible assets                                                48       59
Tangible assets                                              49,445   44,219
Investment properties                                            75      490
Investments                                                     723      491

                                                             50,291   45,259


Current assets
Stocks                                                        1,487    2,397
Debtors                                                      43,010   37,127
Cash deposit                                                    340      340
Cash at bank and in hand                                     13,564   10,147
                                                             58,401   50,011

Creditors - amounts falling due within one year            (45,263) (43,610)

Net current assets                                           13,138    6,401

Total assets less current liabilities                        63,429   51,660
Creditors - amounts falling due after more than one year    (8,641)  (8,678)
                                                            
Provisions for liabilities and charges                      (6,302)  (4,809)

Net assets                                                   48,486   38,173

Capital and reserves
Called up share capital                                      12,154   12,029
Share premium account                                         8,364    6,309
Capital redemption reserve                                       40        -
Merger reserve                                                  967      967
Long term incentive plan reserve                                610      467
Profit and loss account                                      25,996   18,160

Ricardo shareholders' funds (including non - equity          48,131   37,932
interests)
                                                             
Equity minority interests                                       355      241

Total shareholders' funds                                   48,486      38,173


Consolidated Cash Flow Statement

                                                     2001               2000
                                            £'000    £'000     £'000     £'000

Net cash inflow from operating                      22,342              17,668
activities

Returns on investments and servicing
of finance
Interest received                             955                379
Interest paid                             (1,595)              (883)
Interest element of finance lease             (5)               (10)
rental payments
Dividends paid on non - equity shares         (2)                (4)
Dividend paid to minority shareholder        (93)                  -

Net cash outflow from returns on
investment and servicing of finance                  (740)               (518)
Taxation                                           (4,202)              (1460)
Capital expenditure and financial
investment

Unlisted trade investment                   (232)                  -
Purchase of tangible fixed assets        (13,032)           (14,952)
Sale of tangible fixed assets                 761                493

                                                  (12,503)            (14,459)
Acquisitions and disposals
Sale of Subsidiary undertaking              3,255                  -
Cost of disposal                            (260)                  -
                                                     2,995                   -
Equity dividends paid                              (3,587)             (3,340)

Cash flow before use of financing                    4,305             (2,109)
Financing
Issue of ordinary share capital             1,752              1,315
Redemption of preference shares              (72)                  -
Capital elements of finance lease            (52)              (119)
rental payments
Loans taken out                                 -              3,766
Loans repaid                                (306)            (2,008)
Issue of shares to minority                     -                212
shareholder
                                            1,322                        3,166

Increase in cash                            5,627                        1,057




NOTES TO THE ACCOUNTS

1.                 Accounting policies

This preliminary announcement has been prepared on the basis of the accounting
policies as set out in the annual financial statements for the year ended 30
June 2001

2.                  Turnover

                                                       2001                2000
                                                      £'000               £'000

Europe                                               78,060              75,032
North America                                        55,255              40,167
Pacific Basin                                         3,076               4,557
Rest of the World                                     3,520               1,351
                                                    139,911             121,107


The directors consider that the Group operates in one business segment,
serving the global automotive market.  The United Kingdom is the principal
location for operating profit and the net assets of the Group.  The only
significant overseas operation is in the USA, which is interdependent within
the UK operation.  As a consequence, it is not meaningful to show its
turnover, operating results or net assets separately.

3.                  Profit on ordinary activities before taxation

Profit on ordinary activities before taxation is after charging for research
and development of £5.3 million (2000: £5.2 million) and depreciation of £8.1
million (2000: £6.4 million).

4.                  Dividends

The final dividend is 5.3p (2000: 5.0p).  This is payable on 23 November 2001
to ordinary shareholders on the register on 26 October 2001.

5.                  Earnings per share

The calculation of basic earnings per ordinary share and diluted earnings per
ordinary share has been calculated in accordance with FRS14 and is based on
the weighted average number of shares.

Weighted average number of shares
                                                    2001                   2000
                                                    '000                   '000
Basic eps                                         47,844                 47,105
Diluted eps                                       49,222                 48,567


6                    Net cash inflow from operating activities

                                                                  2001    2000
                                                                 £'000   £'000
Operating cash flow

Operating profit                                                15,691  13,141
Depreciation Charges                                             8,068   6,432
Goodwill amortisation                                               11       -
Profit on sale of tangible fixed assets and investment           (108)    (23)
properties
Long term incentive plan charge                                    611     460
Quest contributions - written off to reserves                  (1,302)   (870)
Provision for diminution in value of investment properties           -     200
Decrease in stock                                                  278     395
Increase in debtors                                            (1,116) (4,394)
(Decrease)/increase in creditors                                  (52)   2,063
Foreign exchange                                                   261     264
Net cash inflow                                                 22,342  17,668


7                Reconciliation of net cash flow to movement in net funds (debt)

                                                              2001        2000
                                                             £'000       £'000

Increase in cash                                             5,627       1,057
Movement in debt and lease financing                           358     (1,639)
Change in net funds (debt) from cash flows                   5,985       (582)
Translation difference                                       (285)          69
Movement in net funds (debt) in year                         5,700       (513)
Net debt at 1 July                                         (4,412)     (3,899)
Net funds (debt) at 30 June                                  1,288     (4,412)


8                    Analysis of net debt

                         At 1 July   Cash         Exchange           At 30 June
                              2000   flow         movement                 2001
                             £'000  £'000            £'000                £'000


Cash in hand                10,147  3,322               95               13,564

Overdrafts                 (5,829)  2,305            (110)              (3,634)

Sub total                    4,318  5,627             (15)                9,930

Debt due after 1 year      (8,677)    306            (270)              (8,641)

Finance leases                (53)     52                -                  (1)


Total                      (4,412)  5,985            (285)                1,288


9          The figures for the year ended 30 June 2001 are an extract from the
Group's statutory accounts, which will be delivered to the Registrar of
Companies following the Annual General Meeting.  The independent auditors'
report on these accounts was unqualified and does not contain any statement
under section 237 of the Companies Act 1985.