31st Oct 2013 10:06
LONDON (Alliance News) - Shares in RPS Group PLC dropped 4.1% Thursday despite the energy consulting company saying that it is on track to meet market expectations for the full year, as it pours GBP61 million into acquisitions which it hopes will improve trading in 2014.
A significant number of natural resources projects in Australia and Asia Pacific were delayed during the second half of last year and the first half of 2013, although this has eased in recent months, RPS said. The change in Australian government in September spurred clients to start making investments to take advantage of the weaker Australian dollar.
The company warned that, although economic conditions were improving, it would likely take time to work through. The weaker Australian dollar would impact its results, RPS said.
In Europe, RPS performed well despite economic uncertainty, it said. The UK water market are challenging, although clients in the UK house building sector remained confident.
In the company's Energy business, trade was encouraging in the second half, RPS said, due to its growing market presence and significant investment from its clients.
Since June 30, RPS has completed acquisitions of APASA of Australia, HMA of Canada and Ichron in the UK. It has announced the proposed acquisition of OEC, a project management consultancy in Norway, that it said it was likely to complete in November.
"RPS remains in a strong position and on track to deliver results in line with market expectations for the full year," said Chairman Brook Land in a statement. "We have invested extensively this year in order to diversify and expand further internationally and believe that, with the integration and development of these acquisitions, 2014 will be a good year for the group."
Shares in the oil and gas consultancy company were trading down 3.8% at 287.70 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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