Trading Statement

Ricardo PLC
18 July 2003


                                                                    18 July 2003

                                  Ricardo plc

                            Pre-Close Trading Update


In line with its normal practice, the Board of Ricardo plc is today providing a
trading update before the Company enters the close period in respect of the year
ended 30 June 2003. Ricardo will announce its Preliminary Results on Monday 22
September 2003.


Trading for the year finished satisfactorily. However, after the increased
pension and insurance costs (circa £2.0m for the full year) and given the
continued uncertainty in the global automotive industry outlined at the half
year, it is likely that profit before tax and goodwill will be at the lower end
of a narrow range of current market expectations. EPS, however, is likely to be
slightly improved over the prior year as a result of a reduced tax charge, which
we anticipate will continue for the foreseeable future.


As order cover is now being received for shorter periods than has previously
been experienced, the order book will be consequently reduced year on year.
However, there has been no reduction in the number of orders received and the
current opportunities that we are pursuing. Customer activity in the last three
months has been good and a number of significant new jobs have been started
recently.


All parts of Ricardo have had a very satisfactory year and Ricardo's strategy of
developing its high added value activities is progressing well. After a slow
start, Ricardo North America has seen a steadily improving performance as the
year has developed. Gemini has integrated very well with our existing motorsport
activities and Tarragon has added excellent capability to one of our fastest
growing areas, controls and electronics. Ricardo Strategic Consulting has
exceeded our best estimates for growth in its first year in terms of both
turnover and major clients gained. Following the recent acquisition of the IFT
Group in Germany in June, we are very well placed to further exploit this major
European market.


Overall, with a clear strategic focus and the opportunities created by recent
acquisitions, Ricardo remains confident about prospects for the future.


Enquiries:

Ricardo plc                                     Tel: [phone]
Rodney Westhead, Chief Executive
Andrew Goodburn, Finance Director
www.ricardo.com

Gavin Anderson & Company                        Tel: [phone]
Laura Hickman/Charlotte Stone







                      This information is provided by RNS
            The company news service from the London Stock Exchange