Investor Relations

Notice of Interim Results, Segmentation changes

Notice of Interim Results
Segmentation changes

02 July 2018

Notice of Interim Results

RPS will announce its Interim Results for the six months ended 30 June 2018 on Thursday, 2 August 2018.

A meeting for analysts will be held at 9.30am on the morning of the results announcement at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.

Segmentation changes

Since the publication of the Group's results for the year ended 31 December 2017 on 1 March 2018, the Board has made the following organisational changes.

Creation of a global Energy business

As part of the Board's strategic priority to revitalise our Energy business, the Group's oil and gas businesses in Australia Asia Pacific ('AAP') and Norway, part of Built and Natural Environment - Europe, have been transferred to Energy.

In addition, the Group's Metocean businesses in AAP and Built & Natural Environment - North America ('BNE - North America'), that have significant oil and gas sector exposure, have also been transferred to Energy.

A new team is in place to lead and manage Energy, which now provides consulting and services to the oil and gas sector on a global basis.

The Board has also changed the name of BNE - North America to 'North America'. The Group's ocean science business, based in the USA, that provides services to various sectors including oil and gas, remains within the North America business.

Re-organisation of our businesses in Europe

RPS provides a range of consultancy and technical services in UK, Ireland, the Netherlands and Norway. To provide increased focus and manage the Group's businesses better the Board has made the following organisational changes.

  1. Our business in Norway that provides project and program management and is managed by a dedicated team is now reporting directly to the Group's CEO.
  2. Our business in the UK, Ireland and Netherlands is now being managed as two separate businesses:
    • a) a design and development, planning and environment, and project management consulting business in UK and Ireland, named 'Consulting - UK and Ireland'; and
    • b) a water, laboratory, health, safety and risk services business in UK and the Netherlands, named 'Services - UK and Netherlands'.

RPS will present its results for the six months ended 30 June 2018 reflecting the above and will comprise six segments as follows:

Energy

Consulting - UK and Ireland

Services - UK and Netherlands

Norway

North America

AAP

These segmental changes have been implemented across the Group to enhance organisational effectiveness and efficiency. The Board believes that these changes will provide additional transparency to investors.

The restatement of prior period results consistent with this new segmental structure is shown below in Appendix 1 and 2.

02 July 2018

 

For further information:

RPS Group plc  
John Douglas, Chief Executive Tel: +44 (0) 1235 863206
Gary Young, Finance Director www.rpsgroup.com

Media enquiries:

Buchanan  
Henry Harrison-Topham / Chris Lane / Maddie Seacombe Tel: +44 (0) 20 7466 5000
RPS@buchanan.uk.com www.buchanan.uk.com

 

Notes to Editors

RPS is an international consultancy of 5,500 creative professionals and service providers. We define, design and manage projects in strategic infrastructure, and the evaluation and development of energy, water and other resources. 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.

 

Appendix 1

Segmental Results for December 2017 as restated

£000s Fee income Recharged expenses Intersegment revenue External Revenue
Energy 93,005 13,024 (675) 105,354
Consulting - UK and Ireland 120,767 25,339 (1,388) 144,718
Services - UK and Netherlands 95,699 16,497 (708) 111,488
Norway 67,986 1,192 (212) 68,966
North America 68,274 1,918 (217) 69,975
Australia Asia Pacific 119,674 10,939 (478) 130,135
Group eliminations (3,085) (593) 3,678 -
Total 562,320 68,316 - 630,636
         
£000s   Underlying profit Reorganisation costs Segment profit
Energy   8,511 (544) 7,967
Consulting - UK and Ireland   16,615 - 16,615
Services - UK and Netherlands   13,955 - 13,955
Norway   6,378 - 6,378
North America   7,507 (206) 7,301
Australia Asia Pacific   15,257 (461) 14,796
Total   68,223 (1,211) 67,012

Segmental Results for December 2017 as originally presented

£000s Fee income Recharged expenses Intersegment revenue External Revenue
BNE - Europe 287,574 43,190 (1,246) 329,518
BNE - North America 76,160 1,989 (265) 77,884
Energy 65,407 11,100 (470) 76,037
AAP 135,025 12,556 (384) 147,197
Group eliminations (1,846) (519) 2,365 -
Total 562,320 68,316 - 630,636
         
£000s   Underlying profit Reorganisation costs Segment profit
BNE - Europe   37,048 - 37,048
BNE - North America   8,542 (208) 8,334
Energy   6,801 (441) 6,360
AAP   15,832 (562) 15,270
Total   68,223 (1,211) 67,012

Detailed reclassification for December 2017

£000s Fee income Recharged expenses Intersegment revenue External Revenue
BNE - Europe (287,574) (43,190) 1,246 (329,518)
Consulting - UK and Ireland 120,767 25,339 (1,388) 144,718
Services - UK and Netherlands 95,699 16,497 (708) 111,488
Norway 67,986 1,192 (212) 68,966
North America (7,886) (71) 48 (7,909)
Energy 27,598 1,924 (205) 29,317
Australia Asia Pacific (15,351) (1,617) (94) (17,062)
Group eliminations (1,239) (74) 1,313 -
Total - - - -
         
£000s   Underlying profit Reorganisation costs Segment profit
BNE - Europe   (37,048) - (37,048)
Consulting - UK and Ireland   16,615 - 16,615
Services - UK and Netherlands   13,955 - 13,955
Norway   6,378 - 6,378
North America   (1,035) 2 (1,033)
Energy   1,710 (103) 1,607
Australia Asia Pacific   (575) 101 (474)
Total   - - -

Appendix 2

Segmental Results for June 2017 as restated

£000s Fee income Recharged expenses Intersegment revenue External Revenue
Energy 45,575 8,289 (419) 53,445
Consulting - UK and Ireland 61,106 11,720 (732) 72,094
Services - UK and Netherlands 48,314 7,668 (372) 55,610
Norway 35,066 591 (157) 35,500
North America 33,310 924 (90) 34,144
Australia Asia Pacific 59,394 4,533 (204) 63,723
Group eliminations (1,710) (264) 1,974 -
Total 281,055 33,461 - 314,516
         
£000s   Underlying profit Reorganisation costs Segment profit
Energy   3,561 (331) 3,230
Consulting - UK and Ireland   9,128 - 9,128
Services - UK and Netherlands   6,652 - 6,652
Norway   3,621 - 3,621
North America   4,197 (108) 4,089
Australia Asia Pacific   8,069 (255) 7,814
Total   35,228 (694) 34,534

Segmental Results for June 2017 as originally presented

£000s Fee income Recharged expenses Intersegment revenue External Revenue
BNE - Europe 147,014 20,006 (536) 166,484
BNE - North America 35,221 2,232 (123) 37,330
Energy 33,209 5,835 (686) 38,358
AAP 66,970 5,593 (219) 72,344
Group eliminations (1,359) (205) 1,564 -
Total 281,055 33,461 - 314,516
         
£000s   Underlying profit Reorganisation costs Segment profit
BNE - Europe   19,517 - 19,517
BNE - North America   4,411 (109) 4,302
Energy   2,998 (236) 2,762
AAP   8,302 (349) 7,953
Total   35,228 (694) 34,534

Detailed reclassification for June 2017

         
£000s Fee income Recharged expenses Intersegment revenue External Revenue
BNE - Europe (147,014) (20,006) 536 (166,484)
Consulting - UK and Ireland 61,106 11,720 (732) 72,094
Services - UK and Netherlands 48,314 7,668 (372) 55,610
Norway 35,066 591 (157) 35,500
North America (1,911) (1,308) 33 (3,186)
Energy 12,366 2,454 267 15,087
Australia Asia Pacific (7,576) (1,060) 15 (8,621)
Group eliminations (351) (59) 410 -
Total - - - -
         
£000s   Underlying profit Reorganisation costs Segment profit
BNE - Europe   (19,517) - (19,517)
Consulting - UK and Ireland   9,128 - 9,128
Services - UK and Netherlands   6,652 - 6,652
Norway   3,621 - 3,621
North America   (214) 1 (213)
Energy   563 (95) 468
Australia Asia Pacific   (233) 94 (139)
Total   - - -

 

 

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