11 March 2024
RA INTERNATIONAL GROUP
PLC
("RA International", "RA" or the "Group")
Trading Update
Resumption of profitability and a
positive net cash position
RA International Group PLC (AIM: RAI), a
specialist provider of complex and integrated remote site services
to organisations globally, is pleased to provide a trading update
for the 12 months ended 31 December 2023 (the "Period"). The Group expects to publish
its full year results for the Period in early May 2024.
2023 Financial Highlights (Unaudited, subject to confirmation
through the 2023 audit)
During the Period, the Group achieved revenue of
approximately USD 58.3m (2022: USD 62.9m). Despite the reduction in
revenue, the Group expects to report a profit before tax of
approximately USD 0.2m (2022: loss of USD 13.0m), making the Period
the first profitable financial year since 2020. EBITDA is expected
to be approximately USD 6.3m (2022: loss of USD 4.1m).
Cash at the end of the Period was USD 16.8m
(2022: USD 7.5m), with loan notes of USD 15.8m (2022: USD 14.0m).
This marks a return to net cash for the first year since
2020.
A refinancing exercise was completed during the
Period, extending the maturity of a significant portion of existing
notes as well as raising an additional USD 1.8m. Of the USD 15.8m
debt recorded at year end, USD 2.3m is to be repaid in November
2024, with the remaining USD 13.5m due for repayment in January
2027.
Operational / Financial Highlights
During the Period, RA's primary objective has
been to implement a strategic approach that would promote stability
and recovery from the many challenges that the Group has faced in
recent years which have negatively impacted profit margins. The
Group's focus has been directed towards enhancing operational
efficiencies over long term contracts, re-evaluating and
renegotiating material costs that were adversely affected by
inflation, while actively pursuing measures to minimise delays on
contract implementation. This combined with successful
renegotiations with shipping companies and enhanced last-mile
logistics performance, positions the Group well to identify
sustained market growth opportunities in the future, underscoring
its commitment to long-term success.
The recent restructuring of the RA Federal
Services (RA FS) board, with Mr David Dacquino appointed as Chair,
has led to a significant improvement in that company's performance,
resulting in accelerated growth. The strategic changes made at the
board level have effectively positioned RA FS for success, as
evidenced by the recent awards of strategically important contracts
in Suriname and Thailand with the US Government. This notable
achievement not only demonstrates the strategic expertise of the
board, but also showcases their ability to propel the company
towards new levels of success and increased market share.
The Group has also made significant progress in
recovering value from the cancelled Palma Project, with USD
5.2m net income realised in H2 2023. USD 3.5m
of net cash inflows relating to these profits were received in
2023, with the remaining balance of USD
1.7m being received in January 2024. The sale of
the impaired assets not only provides significant cash inflows,
together with adding to the Company's net income, but also removes
the cost of storage going forward and opens up opportunities with
new clients for additional work.
Outlook for 2024
·
The core focus is to continue to build on the
improvements made in 2023. To this effect, the Group is committed
to increasing revenue and improving margins across all service
sectors through an enhanced strategic focus on cost reduction and
efficient overhead management.
·
Our 2024 strategy is also focused on country
diversification through new project implementation in Suriname,
Thailand and the Maldives. With new RA FS projects delivering
construction and refurbishment work, we will pursue further IFM
work within these locations through the upselling of further
services.
·
Although financial prosperity is a key
deliverable, we will not lose sight of our social impact and
environmental vision of developing and offering ESG solutions to
clients as part of our offering.
·
Through the successful sale of assets, we have
made significant advancements within the commercial mining and
minerals sector, expanding our reach to new customers and
territories. By effectively upselling our expertise to potential
clients, we aim to increase revenue and solidify our presence in
the marketplace during 2024.
·
The appointment of Mr. Roberto Bruni as Chief
Commercial Officer effective 1st of March 2024 marks a significant
enhancement to our organization's strategic outlook for the coming
year. With his expertise, we are poised to bolster our ability to
cultivate a qualified pipeline, ultimately driving an enhanced
conversion ratio and elevating our customer relationship management
practices.
Soraya Narfeldt, CEO of RA International,
commented:
"The Group's focus on stability and cash has
delivered a strong and profitable result. The commitment by my
colleagues, Board and shareholders has enabled the Group to regain
its footing with a return to profitability and stability. We remain
committed to delivering immediate results and lasting change giving
customers the confidence that we are a company they can rely on who
can do the job well and provide the right kind of
support."
The information communicated in this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
Enquiries:
|
RA
International Group plc
Sangita Shah, Chair
Soraya Narfeldt, Chief Executive
Officer
|
Via Strand
Hanson
|
|
Strand Hanson Limited (Nominated & Financial Adviser and
Broker)
Ritchie Balmer / James Spinney /
David Asquith
|
+44 (0) 20
7409 3494
|
About RA International
RA International is a leading
provider of services to remote locations. The Group offers its
services through three channels: construction, integrated
facilities management and supply chain, and services two main
client groups: humanitarian and aid agencies and western government
organisations focusing on overseas projects. It has a strong
customer base, largely comprising UN agencies, UK and US government
departments and global corporations.
The Group provides comprehensive,
flexible, mission critical support to its clients enabling them to
focus on the delivery of their respective businesses and services.
Focusing on integrity and values alongside making on-going
investment in its people, locations and operations has over time
created a reliable and trusted brand within its sector.