Capital Markets Event / Capital Allocation Policy

02 November 2021

‘Well positioned for growth, solving problems that matter’

RPS, a leading multi-sector global professional services firm, is hosting a virtual Capital Markets Event for investors and analysts at 10.00am GMT today, Tuesday 2 November 2021, held via its proprietary virtual consultation platform.

The event will provide a deep dive into some of the Group’s key specialisms and thematics, and will include presentations from a range of RPS’ senior management and divisional heads on areas including Natural Resources and Energy, Urbanisation and Carbon, and ESG and Sustainability.

Capital Allocation Policy

During the presentation Judith Cottrell, Group Finance Director, will also outline the Group’s new capital allocation policy. The policy aims to maintain leverage within the Group’s target range of 1x to 2x EBITDAS* through a disciplined approach to capital allocation that creates sustainable shared value for all stakeholders.

Key points of the new capital allocation policy:

  • Invest in organic fee growth
    • Drive organic growth by allocating capital to strategic initiatives to maximise organic fee growth opportunities
    • Initiatives to be aligned with our strategic priorities and our business model, hence capable of delivering sustainable 5% organic fee growth and at least 10% operating margins

       

  • Use the Group’s strong balance sheet to accelerate fee growth with strategic bolt-on acquisitions that are cash generative and value creating for RPS
    • Invest in value creating M&A that is aligned with the Group’s overall growth strategy, that adds density not diversity, and expands capability or adds capacity
    • Utilise the Group’s strong balance sheet to make acquisitions using debt, not shares, in order to avoid dilution

       

  • Implement a sustainable dividend policy, returning to industry norms in a thoughtful manner whilst retaining adequate capital to invest in strategic acquisitions and organic growth
  • Declare a modest absolute dividend in 2021
  • Over time, increase the absolute dividend to a pay-out ratio of c.30% of profit after tax before amortisation of intangibles and transaction-related costs and the tax thereon
  • In the medium-term, the Group is unlikely to consider share buy backs

 

* Net debt/EBITDAS based on IAS17 excluding leases

No new material information further to the above will be disclosed as part of today’s presentation.

If you would like to join the event, please click here and follow a simple registration process. A recording of the presentation and all materials will also be made available to view at the Group’s website, www.rpsgroup.com/investors.  For further information on the Capital Markets Event, please contact Buchanan at [email protected].



For further information:

RPS  
John Douglas, Chief Executive Tel: +44 (0) 1235 863 206
Judith Cottrell, Group Finance Director www.rpsgroup.com

 Media enquiries:

Buchanan  
Henry Harrison-Topham / Chris Lane / Tilly Abraham Tel: +44 (0) 20 7466 5000
[email protected] www.buchanan.uk.com

 

Notes to Editors

Founded in 1970, RPS is a leading global professional services firm with proven ESG credentials. With c.5,000 consultants and service providers and 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.

Our three thematics – natural resources, urbanisation, and sustainability – are specifically targeted to growth markets where 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 program 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 and digital services.

RPS stands out for its clients by using technology enabled consulting, combined with 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