RPS Group (LSE:RPS) PLC sounded an upbeat note on its outlook after its performance in the first five months of the year beat the board’s expectations.
The strong momentum is expected to continue into the second half of the year, the energy and environmental consultancy said in a trading update.
Fee revenue in the five months to 27 May 2022 totalled £215.4mln, a rise of 12% at constant currency on the prior year comparable period, while margins improved by around 100 basis points.
All segments, except North America, saw year-on-year growth in fee revenue and margin improvement in the period, RPS noted.
In North America, private equity activity was slow in the first five months. In addition, there are delays in the initiation of government infrastructure projects, although the company said it is now seeing improvements in the speed of project initiation.
RPS said its contracted order book at 27 May was up 8% on December 2021 and 12% higher than a year earlier, supported by “the very positive market trends in urbanisation, natural resources, and sustainability”.
"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,” commented CEO John Douglas.
"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."