1st Feb 2018 07:00
RPS Group plc
("RPS" or "the Group")
Group results for the year ended 31 December 2017
The Group's final results for the year ended 31 December 2017 will be announced on 1 March 2018.
Unaudited results suggest that the Group's trading result for 2017, as measured by PBTA, was approximately £54m (2016 £50.7m). Profits from each of our segments increased year on year although Energy profits are lower than we expected.
In light of the lower than expected performance of the Energy businesses and uncertain longer-term prospects of the oil industry, the Board has decided to make a goodwill impairment charge of approximately £40m in respect of the Energy businesses.
The Board is committed to revitalising our international oil and gas businesses and meeting the challenges of a changing hydrocarbons market and emerging alternatives.
Our conversion of profit into operating cash flow was again strong. Net bank borrowing at 31 December 2017 was approximately £80.6m (December 2016 £83.4m).
RPS will report its 2017 segmental results consistent with the presentation that was used in 2016 which reported the results of Energy as a separate segment. The appendix to this announcement shows the Interim Results for the six months ended 30 June 2017 restated to be consistent with this revised segmentation.
1 February 2018
Enquiries:
| |
RPS Group plc | Tel: 01235 863206 |
John Douglas, Chief Executive | |
Gary Young, Finance Director | |
Instinctif Partners | Tel: 020 7457 2020 |
Justine Warren | |
Matthew Smallwood |
The above announcement contains inside information for the purposes of the Market Abuse Regulation.
RPS is an international consultancy providing advice upon the development and management of the built and natural environment; the planning and development of strategic infrastructure, and the evaluation and development of energy, water and other resources. We have offices in the UK, Ireland, the Netherlands, Norway, the United States, Canada, Australia, Malaysia, New Zealand and undertake projects in many other parts of the world.
This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of RPS Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.
Appendix
Segmental Results for the 6 months ended 30 June 2017 as restated
| |||||
£000s | Fees | Expenses | Intersegment revenue | External Revenue | |
BNE - Europe | 147,014 | 20,006 | (536) | 166,484 | |
BNE - North America | 35,221 | 2,232 | (123) | 37,330 | |
Energy | 33,209 | 5,835 | (686) | 38,358 | |
AAP | 66,970 | 5,593 | (219) | 72,344 | |
Group eliminations | (1,359) | (205) | 1,564 | - | |
Total | 281,055 | 33,461 | - | 314,516 | |
| |||||
£000s |
| Underlying profit | Reorganisation costs | Segment profit | |
BNE - Europe |
| 19,517 | - | 19,517 | |
BNE - North America |
| 4,411 | (109) | 4,302 | |
Energy |
| 2,998 | (236) | 2,762 | |
AAP |
| 8,302 | (349) | 7,953 | |
Total |
| 35,228 | (694) | 34,534 | |
| |||||
Segmental Results for the 6 months ended 30 June 2017 as originally presented
| |||||
£000s | Fees | Expenses | Intersegment revenue | External Revenue | |
Europe | 164,449 | 23,474 | (398) | 187,525 | |
North America | 50,335 | 4,509 | (197) | 54,647 | |
AAP | 66,970 | 5,593 | (219) | 72,344 | |
Group eliminations | (699) | (115) | 814 | - | |
Total | 281,055 | 33,461 | - | 314,516 | |
£000s |
| Underlying profit | Reorganisation costs | Segment profit | |
Europe |
| 21,432 | (229) | 21,203 | |
North America |
| 5,494 | (116) | 5,378 | |
AAP |
| 8,302 | (349) | 7,953 | |
Total |
| 35,228 | (694) | 34,534 | |
| |||||
Detailed reclassification for the 6 months ended 30 June 2017 | |||||
£000s | Fees | Expenses | Intersegment revenue | External Revenue | |
Europe | (17,435) | (3,468) | (138) | (21,041) | |
North America | (15,114) | (2,277) | 74 | (17,317) | |
Energy | 33,209 | 5,835 | (686) | 38,358 | |
AAP | - | - | - | - | |
Group eliminations | (660) | (90) | 750 | - | |
Total | - | - | - | - | |
| |||||
£000s |
| Underlying profit | Reorganisation costs | Segment profit | |
Europe |
| (1,915) | 229 | (1,686) | |
North America |
| (1,083) | 7 | (1,076) | |
Energy |
| 2,998 | (236) | 2,762 | |
AAP |
| - | - | - | |
Total |
| - | - | - | |
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