Pre-close Trading Update
24 June 2022
Better than expected trading and positive outlook
RPS, a leading multi-sector global professional services firm, is today issuing a pre-close trading update ahead of its H1-2022 results on Tuesday 9th August 2022.
Strong trading for five months ended 27th May 2022
Performance for the five months ended 27th May 2022 (‘the Period’) has been encouraging and ahead of the Board’s expectations, with 12% growth in Fee Revenue (at constant currency) on the prior year comparable period and c100bps of margin improvement. Fee Revenue for the Period was £215.4 million (5 months ending May 2021: £191.0 million, £192.2 million at constant currency).
With strong demand for our services reflected in growing order books and increasing headcount, all segments, except North America, delivered year-on-year Fee Revenue growth and margin improvement in the Period. Although market drivers remain positive in North America, as reported in our Q1 update on April 27th, private equity activity has been slow in the first five months and delays continue in the initiation of government infrastructure projects, although we are starting to see improvements in the speed of project initiation.
The Group’s contracted order book at 27 May 2022 was up 8% on December 2021 and 12% on May 2021 and continues to be supported by the very positive market trends in urbanisation, natural resources, and sustainability.
Following the strong performance in the Period and the growing contracted order book we expect this momentum to continue in the second half.
John Douglas, Chief Executive of RPS, said:
“The investments we have made have enabled RPS to capitalise on the growth opportunities in our markets and deliver a strong performance in the Period. We also see continued momentum in the second half.
“There remains clear demand for our expertise in our areas of focus – including renewables, project management, transport infrastructure and sustainability – and we are well positioned to continue to benefit from the positive market trends in urbanisation, natural resources and sustainability well into the future.”
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.
For further information:
|John Douglas, Chief Executive||Tel: +44 (0) 1235 863 206|
|Judith Cottrell, Group Finance Director||www.rpsgroup.com|
|Henry Harrison-Topham / Chris Lane / Jack Devoy||Tel: +44 (0) 20 7466 5000|
Notes to Editors
Founded in 1970 and built on a legacy of environmental and social engagement, RPS is a diversified global professional services firm of circa 5,000 consultants, designers, planners, engineers, and technical specialists.
As an established technology enabled consultancy, RPS provides specialist services to government and private sector clients.
RPS creates shared value for all stakeholders. Focusing on Natural Resources, Urbanisation, and Sustainability, RPS concentrates its expertise on the parts of project lifecycles that have the biggest impact on project outcomes. Solving problems that matter in a complex, urbanising, resource-scarce world.
Listed on the Main Market of the London Stock Exchange (LSE: RPS.L), RPS is classified within the Professional Business Support Services subsector.
For further information, please visit www.rpsgroup.com.