Acquisition of Corview and FY 2018 Trading Update
04 February 2019
RPS, a leading multi-sector global professional services firm, is pleased to announce the acquisition of Corview, an Australian-based transport advisory consultancy, for a maximum consideration of AUD$32.0m (£17.8m). This transaction further strengthens RPS’s deep expertise in the region. Corview will form an important part of the Group’s AAP segment and will be included in a newly created, integrated advisory team in the region, adding breadth and depth to RPS’ existing strong advisory capabilities.
Corview is a leading player in the New South Wales and Queensland transport advisory market. It is a pre-eminent consultancy for government infrastructure business with a strong and respected brand, particularly in the investment and finance of infrastructure projects and programs.
Commenting on the acquisition, John Douglas, Chief Executive of RPS, said: “We look for acquisitions that will add density, not greater diversity; that are value creative and that are congruent with our brand and our culture. Corview is known for its expertise in enabling clients to make informed investment decisions and manage complex infrastructure transactions across all phases of project development and delivery. This makes them a natural fit for our business and I am delighted to make Corview our first major acquisition under my tenure as CEO of RPS.”
The maximum consideration payable for the business, certain assets and liabilities of Corview is AUD$32.0m (£17.8m), all payable in cash. At completion the vendors will receive AUD$17.6m (£9.8m), with AUD$4.8m (£2.7m) being received on each of the first, second and third anniversaries of completion. Cash of AUD$2.1m (£1.2m) will be acquired that will fund working capital. Trade debtors will not be acquired. In the year ended 30 June 2018, Corview had revenues of AUD$17.1m (£9.5m) and adjusted profit before tax of AUD$5.1m (£2.8m). RPS’s ownership of the business is effective 1 February 2019.
The company is wholly owned by staff, primarily by the four partners in the business. The partners and staff will stay on in the business.
FY 2018 Trading Update
RPS also provides the following update on the Group's trading performance for the year to 31 December 2018 (‘FY 2018’), which has been in line with market expectations. Unaudited results suggest that the Group's trading result for FY 2018, as measured by PBTA, was £50.2m (2017: £53.9m).
The Group’s conversion of profit into operating cash flow was again strong. Net bank borrowing at 31 December 2018 was £73.9m (31 December 2017: £80.6m).
The Board has reaffirmed its commitment to RPS’s existing policy to hold dividends and improve dividend cover over time.
John Douglas, Chief Executive of RPS, added: “We continue to make good progress on our strategic priorities and this is reflected in our trading performance. The Group has healthy margins, excellent cash conversion and a robust balance sheet. RPS is a good business and the investment that we have made to date will make it an even better business in the future. We look forward to updating the market further when we report our full year results later this month.”
As formerly announced, the Group’s results for FY 2018 will be published on Thursday 21 February 2019.
Note: An exchange rate of £1.00:AUD$1.80 has been used throughout this announcement.
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.
04 February 2019
For further information:
|RPS Group plc|
|John Douglas, Chief Executive||Tel: +44 (0) 1235 863206|
|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 all six continents RPS defines, designs and manages projects that create shared value for a complex, urbanising and resource scarce world.
The Group delivers a broad range of services in six sectors: property, energy, transport, water, defence & government services and resources. Services provided across RPS' six sectors cover twelve service clusters: project & program management, design & development, water services, environment, advisory & management consulting, exploration & development, planning & approvals, heath, safety & risk, oceans & coastal, laboratories, training and communication & 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.