UK Politics

RPS profits plunge but seen “stable” for now

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Profits at RPS Group PLC (LON:RPS) tumbled 88% in 2019 but the energy and environmental consultancy said it expects things to be “more stable” this year, though it will be with a new finance director at the helm.

Trading in the past year was affected by a difficult first half in Australia as spending was held back by the election cycle, with the UK Services arm slowed by a new water regulatory cycle and North America hit by retention and recruitment issues.

READ: RPS Group subdued on "increasing political and economic uncertainty"

Reported profit before tax dropped to £4.8mln from £41mln the year before, even though fee income only fell 3% to £556.5mln.

The dividend was more than halved to 4.42p per share.

Market conditions in Australia improved in the second half and chief executive John Douglas said there was “some stabilisation of market conditions” in the UK and elsewhere towards the end of the year.

He said the board ploughed ahead with its strategic priority of “transitioning from a conglomerate of small consulting and service businesses to becoming a mid-sized global firm”, with a rebranding and a new enterprise resource Read More – Source