Accounting policy changes

RPS Group plc

('RPS' or the 'Group')

Accounting policy changes

RPS, a leading multi-sector global professional services firm, announces that the Board has approved the following changes in accounting policy for our non-IFRS revenue measures:

· Definition of Fee Income amended

· New category of revenue called Pass Through Costs introduced

· Recharged Expenses no longer reported

These changes take effect from 1 January 2020. There is no impact on profit or cash flow as a result of these changes in any reporting period. The decision to make these changes in accounting policy has been taken in line with the Group's plan to improve its financial framework in conjunction with the previously announced ERP programme and is not related to any actions initiated by RPS due to the COVID-19 pandemic.

The definition of Fee Income and related Recharged Expenses as stated in the Group's 2019 Annual Report is as follows:

'Fee Income represents the Group's personnel, subcontractor and equipment time and expertise sold to clients. Recharged Expenses is the recharge of costs incidental to fulfilling the Group's contracts, for example mileage, flights, subsistence, accommodation, and subcontractor costs on which a negligible margin is earned by the Group.'

To date Fee Income, which in future will be called Fee Revenue, has included the revenue from subcontractors on which a non-negligible margin is earned by the Group.

The revised definition of Fee Revenue and the definition of Pass Through Costs are as follows:

'Fee Revenue is revenue from activity where RPS adds value. Specifically, this is the revenue from the Group's resource pool, that consists of its employees and associates, equipment and software, plus profit on Pass Through Costs. Pass Though Costs is a category of revenue representing costs incurred when delivering projects that are not directly related to the Group's resource pool. Such costs are recovered from clients and examples include the cost of subcontractors, travel, accommodation and subsistence.'

The effects of the change in definitions are that (1) the revenue from recharging the cost of subcontractors will be treated as Pass Through Costs and will not be included in Fee Revenue and (2) the profit earned on recharging sub-contractor costs and other incidental costs will be reported in Fee Revenue.

The key reasons for the revised definitions are that they:

· Reduce judgement when deciding what is Fee Revenue;

· Provide a better reflection of the underlying growth in revenue that adds value;

· Give improved information on resource requirements and the size and nature of the resource pool;

· Allow a better reflection of productivity and profitability of the Group's own resources.

The change in definition will necessitate a restatement of previously announced results for the three months ended 31 March 2019, the six months ended 30 June 2019, the three months ended 30 September 2019 and the year ended 31 December 2019.

The restatement of these results is shown below in Appendix 1.

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Notes to Editors

Founded in 1970, RPS is a leading global professional services firm of 5,000 consultants and service providers. Having operated in 125 countries across six continents RPS defines, designs and manages projects that create shared value for a complex, urbanising and resource scarce world.

RPS delivers a broad range of services in six sectors: property, energy, transport, water, defence and government services and resources. Services provided across RPS' six sectors cover twelve service clusters: project and programme management, design and development, water services, environment, advisory and management consulting, exploration and development, planning and approvals, health, safety and risk, oceans and coastal, laboratories, training and communications, creative & digital services.

RPS stands out for its clients by using its deep expertise to solve problems that matter, making them easy to understand. Making complex easy.

RPS' London Stock Exchange ticker is RPS.L. For further information, please visit www.rpsgroup.com.

Appendix 1