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RPS Group PLC - Notice of Q2-2020 Trading Update & COVID-19 update

RNS Number : 0193Q
RPS Group PLC
16 June 2020
 

 For immediate release

16 June 2020

 

RPS Group plc

 

('RPS' or the 'Group')

 

Notice of Q2-2020 Trading Update and COVID-19 update

 

RPS, a leading multi-sector global professional services firm, today announces it will issue a Trading Update for the period ending 30 June 2020 (Q2-2020) on Tuesday, 21 July 2020.

 

Announcement of the Group's Half Year Results for the six months ending 30 June 2020 is then scheduled to be made by early September 2020.  This is to allow sufficient time for the half year close and audit review to be completed, which is expected to be disrupted by the impact of COVID-19.

 

COVID-19 update

 

RPS' priority remains the welfare of its colleagues and clients. We continue to monitor government guidance in all the countries in which we operate to ensure the safety of our colleagues around the world as we continue to satisfy continuing client demand for our services.

 

As previously announced, RPS has taken prudent steps to reduce costs and contain  cash outflow. These have included cancelling the 2019 final dividend, suspending planned work on the ERP system, deferring 2020 salary increases and 2019 senior leadership bonuses, temporary reductions in pay or hours or placing employees on furlough, and ceasing all non-essential capex and discretionary operating expenditure.

 

Today RPS provides the following update for April and May 2020:

 

Net bank borrowings

 

·    At 29 May 2020, net bank borrowings were £77.2 million (31 March 2020: £102.8 million, 31 May 2019: £105.2 million). This decrease since March 2020 is a result of the steps taken to contain the cash impact of COVID-19, accessing government support mechanisms and COVID-19 tax deferral arrangements, and focusing on accelerating cash collection, with many government clients paying well within terms.

 

Revolving credit facility ('RCF')

 

·    The further £60.0 million of RCF, available for 12 months, announced on 27 April 2020, was taken as an insurance policy should RPS require further financial flexibility at this time. To date, RPS has not had to draw down these funds due to the proactive actions that the Group has taken. The financial headroom in respect of committed bank facilities as at 29 May 2020 was £119.8 million, which is in addition to £19.9 million of cash held on that date.

 

Fee revenue

 

·    RPS generates over 50% of Fee Revenue from government or quasi-government work and colleagues continue to work effectively from a mix of office, home and client environments. This has and continues to provide some resilience to the impact of COVID-19 on the Group.

·    As anticipated, Fee Revenue in April and May 2020 decreased compared to the same period in 2019 by circa 17% (at constant currency). This is in line with management's COVID-19 impact modelling undertaken in March 2020.

·    The Q2-2020 Trading Update in July will provide commentary on segment performance for the quarter.

 

Outlook

 

As announced on 27 April 2020, due to the rapidly evolving nature of the COVID-19 pandemic it is not possible to forecast the full extent of the impact on the Group and our markets. Therefore, RPS will not be providing guidance for the 2020 financial year until the duration and extent of this impact becomes clearer. RPS will continue to keep the market up to date.

 

- Ends -

 

For further information:

 

RPS

 

John Douglas, Chief Executive

Tel: +44 (0) 1235 863 206

Judith Cottrell, 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 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.

 

RPS' London Stock Exchange ticker is RPS.L.  For further information, please visit www.rpsgroup.com.

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Market: LSE
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