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RPS enters last leg of year confident after strong third quarter

(Alliance News) - RPS Group PLC on Wednesday reported a third quarter in line with its ...

Alliance News 27 October, 2021 | 9:59AM
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(Alliance News) - RPS Group PLC on Wednesday reported a third quarter in line with its expectations with fee revenue on the up and margins improving.

"Group performance has, as anticipated, strengthened as we have progressed through the year, and we expect momentum and business performance improvement to continue in the final quarter," said Chief Executive John Douglas.

The London-based professional services firm's fee revenue rose to GBP120.1 million in the three months to October 1, up 13% on last year's GBP109.0 million.

Year-to-date, fee revenue is up 4% on a constant currency basis to GBP353.6 million from GBP 340.1 million.

RPS shares were up 2.4% to 127.60 pence each in London on Wednesday morning.

Douglas said: "We continue to manage the business tightly and focus on improving margins, while taking advantage of macro factors that drive demand in our markets.

"These positive and evolving tailwinds include a renewed global focus on energy security that is bringing renewable energy and hydrocarbons back to the forefront; in the UK construction industry, there is increasing confidence and activity, both in the public and private sector; and in North America, the anticipated Bipartisan infrastructure bill coupled with a new fiscal year, signalling increased government spending."

Looking ahead, the outlook for the second half of 2021 is unchanged as the first half's momentum follows through.

"We remain focused on building a business that can deliver mid-single digit rates of organic revenue growth and a double-digit operating margin in the medium term and are confident in our ability to do so," RPS said.

The stock was up 2.4% at 127.60 pence early Wednesday in London.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
RPS Group PLC 123.40 -

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