Q3-2019 Trading Update
24 October 2019
'Anticipated improvement in AAP delivered; progress against strategic priorities continued'
RPS, a leading multi-sector global professional services firm, provides the following trading update for the three months ended 30 September 2019 ('Q3-2019').
Fee income in Q3-2019 was £140 million (Q3-2018: £139 million, £140 million at constant currency). As outlined at the half year stage, the outlook for each of the Group's business segments is positive and, while this remains the case, it is set against the backdrop of increasing political and economic uncertainty.
Commentary on the Group's business segments during Q3-2019 is shown below:
- Norway has benefitted from good market conditions and Energy has continued to perform well. Consulting UK & Ireland had a good performance in the Republic of Ireland and Northern Ireland, partly offset by ongoing Brexit uncertainty which continues to impact the UK economy and is being felt across businesses within this segment. In Services UK & Netherlands, the approaching end of the current AMP cycle has, as anticipated, impacted demand as the sector prepares for the new AMP cycle commencing in April next year.
- In North America, the market remains good and the improved performance seen in Q2-2019 has continued. However, recruitment issues persist as competition for talent remains challenging. In AAP, the performance in Q3-2019 was stronger than the first two quarters of the year. First half political uncertainty is settling, and market conditions are improving. The benefits of the efficiency savings made during the first half are also now being felt across this segment.
Net bank borrowings at 30 September 2019 were £108.1 million (30 June 2019: £101.3 million, 30 September 2018: £86.2 million). The increase in borrowing in the quarter reflects a seasonal working capital increase, the acquisition of Reservoir Imaging Limited and capital expenditure.
Commenting on the trading update, John Douglas, Chief Executive of RPS, said: “Group trading was in line with management expectations for the quarter. As we enter the final quarter of FY-2019 we remain conscious of the current economic and political landscape. In the meantime, we continue to progress our strategic priorities and build a strong platform for growth.”
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.
24 October 2019
For further information:
|RPS Group plc|
|John Douglas, Chief Executive
Gary Young, Finance Director
|Tel: +44 (0) 1235 863 206
|Henry Harrison-Topham / Chris Lane / Tilly Abraham||Tel: +44 (0) 20 7466 5000|
Notes to Editors
Founded in 1970, RPS is a leading global professional services firm of 5,100 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 communications, creative & digital 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.