08:00 Tue 21 Jul 2020
RPS Group PLC - Q2-2020 Trading Update
For immediate release |
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('RPS' or the 'Group')
Q2-2020 Trading Update
'Diversified and resilient global offering will enable a return to sustainable growth in FY-2021'
RPS, a leading multi-sector global professional services firm, provides the following trading update for the three months ended
Q2-2020 Trading Update
Fee Revenue in Q2-2020 was
Commentary on RPS' business segments during Q2-2020 is as follows:
· Energy - against a COVID-19-driven backdrop of reduced demand for fossil fuels and the consequent impact on the oil price, we continued to increase our exposure to renewables, thereby reducing the segment's dependence on oil. The focus on renewables and offshore wind has been supported in-house with existing expertise, where the skills are easily transferrable. Our Energy operations and training businesses have been significantly affected by COVID-19 due to the global travel restrictions. However, our flexible associate-based employee model has enabled us to reduce costs as fee revenue has reduced. In addition, we have restructured our technical advisory business in Q2-2020, which will provide the segment with increased flexibility and resilience to offset revenue fluctuations from H2-2020 onwards
· Consulting
· Services
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§ Australia
The Group's performance in H2-2020 will be somewhat protected by our exposure to government and quasi-government work and in addition we are starting to see potential opportunities as markets begin to emerge from COVID-19. As stated on
As stated in previous trading updates, RPS has taken prudent and proactive steps to reduce costs and contain cash outflows while still matching capacity to market activity and retaining our operating capability. This has resulted in some COVID-19 related restructuring of the business and impairment of goodwill and other assets, after taking into account a more cautious view due to the market uncertainty. These will be reflected as exceptional items in the H1-2020 results. H1-2020 exceptional items total circa
Financials
Net bank borrowings at
The further
"We continue to effectively manage the business through this period of market uncertainty created by the COVID-19 pandemic. The actions we have taken to date have had a positive effect on our trading performance and I would like to thank our employees for their continued commitment and contribution during this time. Our exposure to government and quasi-government work, which will be a tailwind as governments invest in large scale infrastructure projects to kick start economies, helps to limit further downside risk, and positions us well for the future.
The Board's belief is that the disruption to markets caused by the COVID-19 pandemic will last for longer, with a slower than expected recovery in H2-2020. This means 2020 will no longer be the year that RPS returns to solid organic growth, as we had previously anticipated. 2020 is instead a period where we are demonstrating the resilience of our business and our ability to manage uncertainty, and we will come through it ready to take advantage of the opportunities that will present themselves. Our ongoing focus on our people, clients and connectivity remains central to our strategy and the Group has also benefitted from some of the investments that we have made. The diverse nature of our business, coupled with our global reach, puts us in a strong position to prosper as and when market conditions improve, as we have already started to see in AAP, and as such the Board remains confident about our longer term prospects."
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.
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For further information:
RPS |
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Tel: +44 (0) 1235 863 206 |
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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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