RPS Group PLC Trading Update (5497D)

TIDMRPS

RNS Number : 5497D

RPS Group PLC

01 February 2018

RPS Group plc

("RPS" or "the Group")

Group results for the year ended 31 December 2017

The Group's final results for the year ended 31 December 2017 will be announced on 1 March 2018.

Unaudited results suggest that the Group's trading result for 2017, as measured by PBTA, was approximately GBP54m (2016 GBP50.7m). Profits from each of our segments increased year on year although Energy profits are lower than we expected.

In light of the lower than expected performance of the Energy businesses and uncertain longer-term prospects of the oil industry, the Board has decided to make a goodwill impairment charge of approximately GBP40m in respect of the Energy businesses.

The Board is committed to revitalising our international oil and gas businesses and meeting the challenges of a changing hydrocarbons market and emerging alternatives.

Our conversion of profit into operating cash flow was again strong. Net bank borrowing at 31 December 2017 was approximately GBP80.6m (December 2016 GBP83.4m).

RPS will report its 2017 segmental results consistent with the presentation that was used in 2016 which reported the results of Energy as a separate segment. The appendix to this announcement shows the Interim Results for the six months ended 30 June 2017 restated to be consistent with this revised segmentation.

1 February 2018

 
Enquiries: 
RPS Group plc                                                                                 Tel: [phone] 
John Douglas, Chief Executive 
Gary Young, Finance Director 
 
 
Instinctif Partners                                                                           Tel: [phone] 
Justine Warren 
Matthew Smallwood 
 

The above announcement contains inside information for the purposes of the Market Abuse Regulation.

RPS is an international consultancy providing advice upon the development and management of the built and natural environment; the planning and development of strategic infrastructure, and the evaluation and development of energy, water and other resources. We have offices in the UK, Ireland, the Netherlands, Norway, the United States, Canada, Australia, Malaysia, New Zealand and undertake projects in many other parts of the world.

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of RPS Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.

Appendix

 
 Segmental Results for the 6 months ended 30 
  June 2017 as restated 
                                                  Intersegment   External 
 GBP000s                    Fees     Expenses          revenue    Revenue 
---------------------  ---------  -----------  ---------------  --------- 
 BNE - Europe            147,014       20,006            (536)    166,484 
 BNE - North America      35,221        2,232            (123)     37,330 
 Energy                   33,209        5,835            (686)     38,358 
 AAP                      66,970        5,593            (219)     72,344 
 Group eliminations      (1,359)        (205)            1,564          - 
 Total                   281,055       33,461                -    314,516 
---------------------  ---------  -----------  ---------------  --------- 
 
                                   Underlying   Reorganisation    Segment 
 GBP000s                               profit            costs     profit 
---------------------  ---------  -----------  ---------------  --------- 
 BNE - Europe                          19,517                -     19,517 
 BNE - North America                    4,411            (109)      4,302 
 Energy                                 2,998            (236)      2,762 
 AAP                                    8,302            (349)      7,953 
 Total                                 35,228            (694)     34,534 
---------------------  ---------  -----------  ---------------  --------- 
 
 Segmental Results for the 6 months ended 30 
  June 2017 as originally presented 
                                                  Intersegment   External 
 GBP000s                    Fees     Expenses          revenue    Revenue 
---------------------  ---------  -----------  ---------------  --------- 
 Europe                  164,449       23,474            (398)    187,525 
 North America            50,335        4,509            (197)     54,647 
 AAP                      66,970        5,593            (219)     72,344 
 Group eliminations        (699)        (115)              814          - 
 Total                   281,055       33,461                -    314,516 
---------------------  ---------  -----------  ---------------  --------- 
 
                                   Underlying   Reorganisation    Segment 
 GBP000s                               profit            costs     profit 
---------------------  ---------  -----------  ---------------  --------- 
 Europe                                21,432            (229)     21,203 
 North America                          5,494            (116)      5,378 
 AAP                                    8,302            (349)      7,953 
 Total                                 35,228            (694)     34,534 
---------------------  ---------  -----------  ---------------  --------- 
 
 Detailed reclassification for the 6 months 
  ended 30 June 2017 
                                                  Intersegment   External 
 GBP000s                    Fees     Expenses          revenue    Revenue 
---------------------  ---------  -----------  ---------------  --------- 
 Europe                 (17,435)      (3,468)            (138)   (21,041) 
 North America          (15,114)      (2,277)               74   (17,317) 
 Energy                   33,209        5,835            (686)     38,358 
 AAP                           -            -                -          - 
 Group eliminations        (660)         (90)              750          - 
 Total                         -            -                -          - 
---------------------  ---------  -----------  ---------------  --------- 
 
                                   Underlying   Reorganisation    Segment 
 GBP000s                               profit            costs     profit 
---------------------  ---------  -----------  ---------------  --------- 
 Europe                               (1,915)              229    (1,686) 
 North America                        (1,083)                7    (1,076) 
 Energy                                 2,998            (236)      2,762 
 AAP                                        -                -          - 
 Total                                      -                -          - 
---------------------  ---------  -----------  ---------------  --------- 
 
 

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February 01, 2018 02:00 ET (07:00 GMT)