Energy

Demand for our services from oil and gas exploration and production companies reached record levels. This reflects both buoyant market conditions and our position as a world leader in this sector. The requirements of the developed world to identify and secure long term supplies of energy, coupled with the increasing energy needs of developing nations, suggest that activity in this market will remain at a high level for the foreseeable future. We see increasing interest from clients in the combination of the geological, engineering, environmental and safety expertise that we provide.

RPS' reputation within the financial community in respect of determination of oil and gas reserves for reporting purposes, and in support of corporate activity, developed encouragingly during the year. The oil and gas companies and their advisors value the breadth and depth of our expertise, including our environmental experience. Our increasing profile has enabled us to develop successful recruitment and

retention strategies, despite continuing demands for skilled staff in the sector. The acquisitions made during the course of 2007 enhanced our staff base, whilst also enabling us to develop materially our businesses in North America and Australia.

The geological, engineering and environmental skills we have are proving to be of significant value to developers of offshore wind farms around the UK coast. Working with the planning and environmental assessment capability we have in our Planning & Development business, our Energy staff have been involved in schemes which account for about 90% of the UK offshore wind farm capacity, including the London Array, the world's largest offshore scheme. The UK Government recently announced a further major expansion in offshore wind capacity; this should also benefit us. JD Consulting, acquired in December 2007 and located in Texas, is currently advising upon a proposal for one of the world's largest onshore wind farms.