28th Apr 2021 11:13
(Alliance News) - RPS Group PLC on Wednesday said that its performance in its first quarter was in line with expectations despite a decline in fee revenue from the prior year.
The professional services firm said fee revenue for the quarter ended April 2 was GBP117.5 million, down 6.3% year-on-year from GBP125.4 million. RPS explained the first quarter of last year was largely unaffected by Covid.
Despite the year-on-year revenue decrease, RPS said there was an improving trajectory in fee revenue which showed a "continuing sequential recovery" from the peak of the pandemic.
RPS shored up its cash position in the past year, with net bank borrowings at April 2 of GBP31.3 million, substantially down from GBP102.8 million on March 31, 2020.
RPS said it remains optimistic about the remainder of the year, pointing to a "healthy contracted order book, the improving trajectory in fee revenue demonstrated to date is expected to continue into the second quarter and margins are expected to improve on the prior year."
Chief Executive John Douglas said: "Given the limited impact of the pandemic on the first quarter of 2020, which only affected operations from mid-March onwards, we see this quarter as the toughest year-on-year comparator for RPS in 2021. Our margin performance is in line with our expectations, and debt continues to be very well managed.
"The performance for the first quarter of 2021 demonstrates the underlying health of the business. RPS remains well-placed to benefit from market conditions as they continue to improve and from a growing renewables market. We are confident that in the remaining quarters in 2021, the group will show year-on-year growth."
RPS Group shares were trading 1.1% lower in London on Wednesday morning at 96.90 pence each.
By Will Paige; [email protected]
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