TIDMRPS
RNS Number : 3373Q
RPS Group PLC
27 October 2021
For Immediate Release 27 October 2021
RPS Group plc
('RPS' or the 'Group')
Q3-2021 Trading Update
'Continued momentum, positive industry tailwinds, increasing
confidence'
RPS, a leading multi-sector global professional services firm,
provides the following trading update for the quarter ended 1
October 2021 ('Q3-2021' or the 'period').
Performance for the period was in line with the Board's
expectations with Fee Revenue on an upward trajectory and margins
improving. The trends in our markets and business performance that
we signalled in the H1-2021 results have continued. Fee Revenue in
Q3-2021 increased 13% on Q3-2020 at constant currency to GBP120.1
million (Q3-2020: GBP109.0 million, GBP106.6 million at constant
currency). Year to date Fee Revenue is up 4% at constant currency
at GBP353.6 million (2020: GBP341.5 million, GBP340.1 million at
constant currency).
Commentary on the Group's statutory segments during Q3-2021,
using constant currency comparisons, is provided below:
-- Energy - margin improvement despite activity remaining subdued in gas and oil
Q3-2021 Fee Revenue was up 19% on Q3-2020 and Contracted Order
Book (COB) was up 5% on December 2020. Demand for renewables
remains strong, but COVID-related travel restrictions are
continuing to impact delivery of some projects. Activity in gas and
oil remains subdued despite increased oil prices. However, demand
for conventional energy is expected to continue and we expect
activity levels in this area to pick up. We continue to manage
costs carefully through the variable associate model and margins
have improved.
-- Consulting UK & Ireland - continued good recovery out of COVID; margins improving
Q3-2021 Fee Revenue was up 14% on Q3-2020. Demand remains strong
in our markets and the (COB) was up 28% on December 2020. With
continued growth in COB, recruitment and retention is our key focus
to deliver further Fee Revenue growth.
-- Services UK & Netherlands - ongoing ramp up of AMP7; improved margins
Q3-2021 Fee Revenue was up 7% on Q3-2020. The AMP7 cycle ramp up
has been slower than expected but is now in line with our
forecasts. Performance in our Netherlands business is improving
steadily as the country relaxes COVID restrictions. COB was up 10%
on December 2020.
-- Norway - steady performance; improving margins
Q3-2021 Fee Revenue was up 14% on Q3-2020. Whilst COB has
reduced by 10% on December 2020, it has increased by 3% on June
2021 as demand for our consultancy services remains strong and, as
lock down restrictions ease, demand for our training activities is
improving.
-- North America - tighter, better business; improved margins due to restructuring in 2020
Q3-2021 Fee Revenue was down 2% on Q3-2020 because of delays in
the activation of government project awards in our Infrastructure
business. These delays eased in September 2021 as the government
entered the new fiscal year and COB in the Infrastructure business
has increased by 12% since June 2021. Our markets remain strong
with good order books in our Environmental Risk and Ocean Science
businesses. Whilst total North American COB is down 6% since
December 2020, it is up 7% on June 2021.
-- Australia Asia Pacific (AAP) - strong performance ahead; margins improving
Q3-2021 Fee Revenue was up 16% on Q3-2020. Ongoing government
spending in project management and transport infrastructure, plus a
buoyant property market, means demand for our services remains
strong and the COB continued to grow, up 23% on December 2020.
Strong cash performance
Cashflow continues to be tightly managed with net bank
borrowings on 1 October 2021 at the lower end of management
expectations at GBP34.3 million (30 September 2020: GBP32.8
million, 30 June 2021: GBP27.8 million). A disciplined focus on
billing and collections means lock up days remain below prior year
levels at 61 days at 1 October 2021 (30 September 2020: 70 days, 30
June 2021: 60 days). Deferred payroll and sales taxes of GBP1.8
million were repaid in the quarter with GBP3.2 million outstanding
on 1 October 2021.
With continued strong cash management and improved trading,
financial leverage of Net Debt/rolling 12-month EBITDA at 1 October
2021 was 1.2x. This remains towards the bottom end of our target
range of 1.0x to 2.0x.
The Group continues to have significant headroom in our debt
facilities, which have long maturity. The Pricoa private placement
notes have been repaid and a new seven-year refinancing of GBP55.0
million is in place. As at 1 October 2021 headroom was GBP100.0
million, which is in addition to GBP18.8 million of cash held on
that date.
Outlook
The outlook for H2-2021 is unchanged and RPS is increasingly
confident in its ability to deliver in 2021, as the good momentum
achieved in H1-2021 has continued into H2-2021. The COB continues
to strengthen and has increased by 15% since December 2020, with
growth in four out of six segments. RPS remains well positioned to
continue to benefit from operating in favourable markets with
significant growth opportunities.
We remain focused on building a business that can deliver
mid-single digit rates of organic revenue growth and a double-digit
operating margin in the medium term and are confident in our
ability to do so.
John Douglas, Chief Executive of RPS, said:
"Since our interim results in August, market confidence in
general has continued to build, resulting in a corresponding and
ongoing improvement in RPS' financial performance.
"We continue to manage the business tightly and focus on
improving margins, while taking advantage of macro factors that
drive demand in our markets. These positive and evolving tailwinds
include a renewed global focus on energy security that is bringing
renewable energy and hydrocarbons back to the forefront; in the UK
construction industry, there is increasing confidence and activity,
both in the public and private sector; and in North America, the
anticipated Bipartisan infrastructure bill coupled with a new
fiscal year, signalling increased government spending.
"Group performance has, as anticipated, strengthened as we have
progressed through the year, and we expect momentum and business
performance improvement to continue in the final quarter."
Capital Markets Event
RPS is hosting a virtual Capital Markets Event for investors and
analysts between 10am and 12pm UK time on Tuesday, 2 November 2021.
To register for the event, please click here and follow a simple
registration process.
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
businesses of RPS Group plc. These statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are many factors
that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements. Nothing in this announcement should be construed as a
profit forecast.
The above announcement contains inside information for the
purpose of Article 7 of the Market Abuse Regulation.
- Ends -
For further information:
RPS
John Douglas, Chief Executive Tel: +44 (0) 1235 863 206
Judith Cottrell, Finance Director www.rpsgroup.com
Media enquiries:
Buchanan
Henry Harrison-Topham / Chris Lane / Tel: +44 (0) 20 7466 5000
Tilly Abraham
RPS@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Founded in 1970, RPS is a leading global professional services
firm with proven ESG credentials. With c.5,000 consultants and
service providers and having operated in 125 countries across six
continents - RPS defines, designs, and manages projects that create
shared value for a complex, urbanising and resource-scarce
world.
Our three thematics - natural resources, urbanisation, and
sustainability - are specifically targeted to growth markets where
RPS delivers a broad range of services in six sectors: property,
energy, transport, water, defence and government services and
resources. Services provided across RPS' six sectors cover twelve
service clusters: project and program management, design and
development, water services, environment, advisory and management
consulting, exploration and development, planning and approvals,
health, safety and risk, oceans and coastal, laboratories, training
and communications, creative and digital services.
RPS stands out for its clients by using technology enabled
consulting, combined with deep expertise, to solve problems that
matter, making them easy to understand. Making complex easy.
RPS' London Stock Exchange ticker is RPS.L. For further
information, please visit www.rpsgroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEQLFLFBLZFBX
(END) Dow Jones Newswires
October 27, 2021 02:00 ET (06:00 GMT)
Rps (LSE:RPS)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Rps (LSE:RPS)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024