08:00 Mon 27 Apr 2020
RPS Group PLC - Increased Banking Facilities & Q120 Trading Update
For Immediate Release |
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('RPS' or the 'Group')
Increased Banking Facilities and Q1-2020 Trading Update
"Banking facilities increased to provide additional flexibility.
COVID-19 impact partially mitigated through strong public sector exposure"
RPS, a leading multi-sector global professional services firm, provides the following update on its banking facilities and trading for the three months ended
Financing and liquidity
As well as the actions taken to protect the Group's operations, the Board has sought additional funding and modified financial covenants applicable to its banking facilities in order to provide further financial flexibility at this time. RPS announces today that it has concluded arrangements with its existing revolving credit facility ('RCF') providers, as well as with
In addition to its existing
RPS has also agreed new financial covenant tests that allow operational flexibility during the next 12 months. These are applicable to all RPS' RCF facilities and US private placement notes in issue and replace existing tests. The new financial covenants include a monthly minimum threshold covenant, leverage and interest cover tests as at
This new facility and financial covenants will provide increased financial liquidity to enable RPS to navigate the challenges of the COVID-19 pandemic and take advantage of the economic recovery as it comes through.
Q1-2020 Trading Update
Fee Revenue in Q1-2020 was
The main highlights of each of RPS' business segments during Q1-2020 are:
· Energy - against a backdrop of oil price volatility, performance was stable overall with a good performance in Exploration and Development, although activity in Advisory was muted
· Consulting
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· Services
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· Australia
Net bank borrowings at
COVID-19 update
Our priority remains the welfare of our colleagues and clients. We continue to monitor government guidance in all the countries in which we operate in order to ensure the safety of our colleagues around the world as we continue to satisfy continuing client demand for our services.
As previously announced on
RPS continues to monitor its operations closely and actively manage its cost base. Additional measures taken since the announcement include the Board, Group Leadership Team and global
Outlook
As RPS enters Q2-2020, the impact of COVID-19 on the business and our markets has increased although at this stage it is not possible to forecast the full extent. Therefore, RPS will not be providing guidance for the 2020 financial year until the duration and extent of this impact is clearer.
"As well as safeguarding colleagues and clients, we continue to evaluate the market landscape during this period of uncertainty to ensure we are well placed to mitigate any negative impact and to be ready for the economic recovery.
"We are continuing with targeted strategic priorities as outlined in our 2020 strategy. These include pursuing our global efforts in renewables, specifically offshore wind, as well as a carefully considered roll-out of ongoing learning and development initiatives that lend themselves to working from home.
"The Board is pleased to have agreed increased committed banking facilities to provide us with more flexibility during this period. With over half of our business exposed to the public sector, we believe that we are well placed to recover in due course and are doing everything we possibly can to protect our business in the interim."
- Ends -
This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of
The above announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation.
For further information:
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Tel: +44 (0) 1235 863 206 |
Media enquiries:
Buchanan |
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Tel: +44 (0) 20 7466 5000 |
Notes to Editors
Founded in 1970, RPS is a leading global professional services firm of 5,000 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.
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