11th Aug 2021 12:38
(Alliance News) - RPS Group PLC on Wednesday reported a strong first half performance, swinging to pretax profit and reinstating an interim dividend.
RPS is a London-based multi-sector professional services firm that manages projects across property, energy, water, transport, resources and government services.
The company swung to a pretax profit of GBP7.1 million for the six months ended June 30 from a loss of GBP34.1 million a year ago.
It booked interim revenue of GBP271.8 million, marginally lower from GBP272.4 million a year before.
RPS said that it expects net debt to widen in the second half of the year as it pays tax deferrals and the "working capital benefits of 2020 continue to unwind".
At June 30, the project manager's net debt to earnings before interest, tax, depreciation and amortisation was 1.0x compared to 1.7x year-on-year, meaning the measure was at the bottom end of the company's 1.0x to 2.0x target range.
RPS reinstated an interim dividend of 26 pence, describing the amount as "modest" but appropriate given the "ongoing volatility in some markets".
"We continue to benefit from operating in favourable geographies with government investment and recovering economic confidence and see significant growth opportunities in renewables, project management, infrastructure and sustainability," said Chief Executive John Douglas.
"With a strong cash position and significant available debt facilities, RPS is well placed to capitalise on these growth opportunities," he added.
RPS shares were flat at 110.00 pence in London on Wednesday afternoon.
By Josie O'Brien; [email protected]
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