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RPS Group shares higher after pretax profit soars by 35%

The natural resources sector consultancy said profit was boosted by organic growth, improved margin, lower re-organisation costs and the weaker pound

Skyline of oil, mining works
In late morning trading, the small cap stock was up 3%, or 8.0p to 274.5p

RPS Group PLC (LON:RPS) saw its shares rise today after it said half-year pretax profit jumped by 35% from a year ago, boosted by organic growth, improved margin, lower re-organisation costs and the weaker pound.  

In a statement, the natural resources consultancy group said profit before tax, amortisation of acquired intangibles and transaction-related costs was £27.2mln in the half year to end June, up from £20.2mln in the corresponding period last year.

The company's adjusted, basic earnings share was up 35% to 8.71p (2016: 6.44p) and net bank borrowings eased to £93.4mln from £95.0mln. The firm will pay an Interim dividend of 4.8p, up 3% on last year's 4.66p payout. 

RPS's CEO, Alan Hearne said: "The Group's strategy of building a diverse international business has enabled RPS to emerge rapidly and effectively from the severe oil and gas downturn of the last two years. The creation of our three regional businesses enables us to look confidently to the future."

He added: "The reduction in our dependence upon the oil and gas market, the continuing impact of good cost management and the strong results for the first half of the year enable us to anticipate modestly exceeding market expectations for the full year."

In late afternoon trading, the small cap stock was up 4%, or 12p to 279.0p.

Quick facts: RPS Group

Price: 162.2 GBX

LSE:RPS
Market: LSE
Market Cap: £368.27 m
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