Q1-2019 Trading Update
01 May 2019
'Investment to accelerate growth continues. Strong headway in delivering strategic priorities'
RPS, a leading multi-sector global professional services firm, provides the following trading update for the three months ended 31 March 2019 ('Q1-2019') ahead of its Annual General Meeting being held later today.
Fee income in Q1-2019 was £140.8 million (Q1 2018: £141.9 million). At constant currency for Q1-2019 it was £141.9 million. The steady fee income performance was in line with management expectations.
Commentary on the profitability of the Group's segments is shown below:
- Energy and Norway both exceeded management expectations in Q1-2019, benefiting from good conditions in their respective markets
- Consulting UK & Ireland met management expectations against a background of political and economic uncertainty. Likewise, Services UK & Netherlands also traded well
- In North America, results were impacted by continuing headwinds including client delays in the commencement of work and a slower start to the environmental due diligence market. In Australia Asia Pacific ('AAP'), the Australian property market, as anticipated, remained subdued. However, the transport sector was strong, and the acquisition of Corview in February 2019 further strengthens the Group's position in this market. There are indications of improved performance in both segments in the second quarter
Net bank debt at 31 March 2019 was £89.6 million (31 March 2018: £87.0 million, 31 December 2018: £73.9 million), reflecting an £8.6 million net cash outflow arising from the acquisition of Corview.
Commenting on the trading update, John Douglas, Chief Executive of RPS, said: "As previously outlined, RPS is continuing to invest in its people, technology and innovation to accelerate growth. In the first quarter we introduced transparent and more engaging reward and performance management processes. We continued to invest in our brand and the roll-out of our new ERP is proceeding to plan. We are making progress on our strategic priorities and we look forward to further updating the market at the time of our interim results in August 2019."
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.
01 May 2019
For further information:
|RPS Group plc|
|John Douglas, Chief Executive||Tel: +44 (0) 1235 863 206|
|Gary Young, Finance Director||www.rpsgroup.com|
|Henry Harrison-Topham / Chris Lane / Maddie Seacombe||Tel: +44 (0) 20 7466 5000|
Notes to Editors
Founded in 1970, RPS is a leading global professional services firm of 5,600 consultants and service providers. 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.
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 programme 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 communication and creative services.
RPS stands out for its clients by using its 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.