AGM Trading Update
02 May 2017
New Regional Structure Delivering
The Group's trading in the first quarter of 2017 was materially better than in the equivalent period in 2016. We achieved an encouraging level of organic growth in underlying profit, supported by a reduction in the level of reorganisation costs and continuing currency benefits.
RPS has, since 1 January 2017, been trading in three multi-disciplinary regional businesses; these have operated efficiently and effectively. Fees and segment profit grew, year on year, in the first quarter in each region.
The Board is confident that the momentum generated in the first part of the year will enable the Group to publish Interim Results showing a material improvement on the first half result in 2016. This will provide a solid platform to deliver good results in the full year, even though we benefited in the second half of 2016 from the recovery of significant bad debts previously written off.
Net bank debt at the end of March was £84.4 million (31 December 2016: £83.4 million) and leverage was 1.4 (31 December 2016: 1.6). Work has started to identify acquisition opportunities, primarily in the US, but we are open to opportunities in our other regional businesses.
2 May 2017
|RPS Group plc||Tel: 01235 863206|
|Dr Alan Hearne, Chief Executive|
|Gary Young, Finance Director|
|Instinctif Partners||Tel: 020 7457 2020|
RPS define, design and manage projects in the property, energy, transport water, defence and security and resources sectors across 125 countries. Our main offices are in the UK, Ireland, the Netherlands, Norway, the USA, Canada and Australia Asia Pacific. We undertake projects in many other parts of the world.
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 a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. The Board of RPS considers market expectations are best defined by the range of forecasts for PBTA published by analysts who consistently follow the Group. Nothing in this announcement should be construed as a profit forecast.