RPS Group maintains heading as it reorganises regional divisions

RPS Group posted its results for the 2016 calendar year on Thursday, reporting “significantly improved” performance in the second half, alongside strong cash conversion with net debt and leverage “reduced substantially” from its interim position.

The London-listed firm posted revenue of £594.5m, up from £567m in 2015, with fee income improving to £534.3m from £506.1m.

Profit before tax, amortisation and impairments was down slightly, at £50.7m from £51.8m, with adjusted basic earnings per share roughly in line at 16.6p against 16.57p.

The board maintained the total dividend per share at 9.74p.

On a statutory basis, profit before tax improved drastically to £32.8m from £9.9m, with basic earnings per share up to 11.35p from 3.11p.

“The group's long term strategy of building a diverse international business has enabled RPS to produce a creditable result despite the significant impact of the worst downturn the global oil and gas sector has experienced,” said CEO Alan Hearne.

“Our operating cash flow was once again strong and our balance sheet strengthened significantly in the second half.”

Hearne explained that, in order to reflect the changing mix of the business its regional energy activities were merged with its Built and Natural Environment businesses to form two new multi-disciplinary regional businesses.

“Our experience of doing this in Australia and Asia Pacific in 2013 has been positive and we expect the new Europe and North America segments to benefit from being integrated in the same way.

“The board believes the new regional structure provides a platform to enable the group to return to growth in 2017.”