16th Jun 2020 09:38
(Alliance News) - Professional services firm RPS Group PLC said Tuesday it continues to take steps to serve cash, as its fee revenue for April and May declined in line with expectations.
Shares in RPS Group were 11% higher at 58.10 pence on Tuesday in London.
As at May 29, net bank borrowings were GBP77.2 million, down from GBP105.2 million as at May 31, 2019, and from GBP102.8 million as at March 31, 2020, as part of the company's attempt to contain the cash impact.
Other steps taken by RPS to preserve cash includes cancelling 2019 final dividend, suspending work on the ERP system and deferring 2020 salary increases.
In addition, the GBP60 million revolving credit facility announced in late April, was taken as an insurance policy should the group require further financial flexibility. To date, RPS has not drawn down on these funds.
For April and May, fee revenue declined by 17% year-on-year on a constant currency basis. However, 50% of revenue is derived from government work, which continues to provide some resilience.
Abingdon, Oxfordshire-based RPS Group will provide a trading update for the first half of 2020 in July, while its actual report is expected to be publish in early September.
By Dayo Laniyan; [email protected]
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