Interim Results for the six months ended 30 June 2011
Results for the period as anticipated. Board still expects growth in second half. Group’s financial position remains strong; interim dividend again increased 15%.
|
|
2011
|
2010
|
|
|
|
H1
|
H1
|
|
|
Revenue (£m)
|
251.5
|
226.0
|
+11.3%
|
|
Fee income (£m)
|
212.9
|
192.5
|
+10.6%
|
|
Profit before taxation* (£m)
|
23.5
|
23.4
|
+ 0.5%
|
|
Earnings per share* (basic) (p)
|
7.67
|
7.52
|
+ 2.0%
|
|
Operating cash flow (£m)
|
27.7
|
21.1
|
+31.4%
|
|
Dividend per share (p)
|
2.66
|
2.31
|
+15.2%
|
|
Statutory profit before tax (£m)
|
18.6
|
21.0
|
-11.4%
|
|
Statutory earnings per share (basic) (p)
|
6.05
|
6.75
|
-10.4%
|
*before amortisation of intangible assets of £4.8 million (2010 H1: £2.3 million)
Brook Land, Chairman, commenting on the results, said:
“Our strategy of the last decade has been to diversify our range of activities and geographical reach into potential growth areas. This has resulted in a successful rebalancing of Group activities, enabling us to come through the exceptionally challenging market conditions of recent years in good shape.
Our first half results were as anticipated and confirm that some parts of the Group’s business are growing again, whilst others still face significant economic headwinds. The Group’s performance in this period was also affected by a combination of the severe weather in Australia, a slow resumption of deep water drilling in the Gulf of Mexico and political unrest in the Middle East and North Africa (MENA).
The second half should see an improved performance, as the impact of these exceptional events reduces, with continued growth from our energy and environmental management activities, including a larger contribution from the three acquisitions made in the first half. This should enable market expectations for 2011 to be achieved.
Although significant uncertainties are still apparent in property development markets internationally, we remain of the view this is likely to mark the beginning of a new period of growth for RPS. The pace of that growth remains, in significant part, dependant upon factors external to the Group”.
28 July 2011
|
ENQUIRIES
|
|
|
RPS Group plc
|
Today: 020 7457 2020
|
|
Dr Alan Hearne, Chief Executive
|
Thereafter: 01235 863206
|
|
Gary Young, Finance Director
|
|
|
|
|
|
College Hill
|
|
|
Matthew Smallwood
|
Tel: 020 7457 2020
|
|
|
|
RPS is an international consultancy providing advice upon the development of natural resources, land and property, the management of the environment and the health and safety of people. We have offices in the UK, Ireland, the Netherlands, the Americas and Australia/Asia Pacific and undertake projects in many other parts of the world. The Group is a constituent of both the FTSE 250 and FTSE 4 Good Indices.
Results
RPS remains well positioned in markets of fundamental importance to the global economy, with long term growth potential. Despite continuing global economic and financial uncertainty, some of these are beginning to show signs of sustainable recovery. As announced previously, Group trading in the first part of the year was held back by the disruptive effect of flooding and cyclones in Australia, the slow resumption of deep water drilling in the Gulf of Mexico and political disruption in MENA, particularly Libya.
Profit before tax and amortisation of acquired intangibles was £23.5 million (2010: £23.4 million). Basic earnings per share (before amortisation) were 7.67 pence (2010: 7.52 pence). The underlying contribution of each segment to divisional profit was:
|
(£m)
|
|
2011
|
|
2010
|
|
|
|
|
H1
|
|
H1
|
|
|
Energy
|
|
14.3
|
|
12.1
|
+18%
|
|
Planning and Development
|
|
8.0
|
|
13.1
|
-39%
|
|
Environmental Management
|
|
5.7
|
|
5.0
|
+14%
|
|
Total
|
|
28.0
|
|
30.2
|
|
*before amortisation of acquired intangible assets of £4.8 million (2010: £2.3m)
and before reorganisation costs of £0.1 million (2010: £2.0 million cost)
Cash Flow, Funding and Dividend
Conversion of profit into cash continued at an encouraging level and our balance sheet remains strong. After funding acquisition investment of £14.3 million, net bank borrowings at 30 June were £35.8 million (31 December 2010: £31.5 million). Our committed bank facilities of £125 million are in place until July 2013.
The Board remains confident about the Group’s financial strength and has, once again, increased the interim dividend by 15% to 2.66 pence per share (2010: 2.31 pence) payable on 20 October 2011 to shareholders on the register on 23 September 2011.
Acquisitions
During the course of the first half we completed three acquisitions. On 18 February 2011 we announced the acquisition of Evans-Hamilton Incorporated (“EHI”), a US based business, for a maximum consideration of US $8.67 million (£5.4 million). It provides oceanographic consulting and marine environment measurement services, as well as carrying out environmental and coastal process studies and assisting clients with offshore environmental compliance.
On 2 March 2011 we announced the acquisition of Nautilus Ltd and Nautilus World Ltd (together “Nautilus”), a UK/US based business providing geosciences and petroleum engineering training to the oil and gas industry, for a maximum consideration of £18.6 million.
On 6 May we announced we had acquired the 50% of Terranean Mapping Technologies Pty Ltd (“Terranean”) we did not own, for a maximum consideration of $A2.7 million (£1.7 million). Terranean is a market leader in Australia in high technology surveying, mapping and geographical information systems. As a result of this transaction we are required to revalue upwards the 50% of Terranean we owned previously by £1.5 million.
EHI and Nautilus have been successfully integrated into our Energy business, whilst Terranean now forms an integral part of the Planning and Development business in Australia. Discussions with potential vendors in respect of further acquisitions are continuing.
Markets and Trading
Energy
We provide internationally recognised consultancy services to the oil and gas industries from bases in the UK, USA, Canada, Australia, Asia Pacific, which act as regional hubs for projects undertaken in many other countries. The first half results showed encouraging growth despite man-made and political disruption in the Gulf of Mexico and MENA:
|
|
2011
|
2010
|
|
|
H1
|
H1
|
|
Fee income (£m)
|
85.5
|
71.3
|
|
Underlying profit* (£m)
|
14.3
|
12.1
|
|
Margin %
|
16.8
|
17.0
|
*before amortisation of acquired intangible assets of £2.8 million (2010: £0.7m)
and before reorganisation costs of £0.5 million (2010: £0.0 million)
Conditions in both the traditional and unconventional oil and gas sectors were encouraging. Our good relationship with the financial services sector continued to bring forward high quality work related to transactions and valuations. Encouragingly, we seem to have moved into the expansionary phase of the cycle. We are, however, beginning to experience resource and cost pressures. Deep water drilling in the Gulf of Mexico has recently resumed. We expect to benefit increasingly from this in the coming months as our clients define project timing. We still anticipate client activity internationally will continue to build during the remainder of the year and expect our Energy business to achieve good growth for the full year.
Planning and Development
Within these businesses we provide market leading consultancy services in respect of town and country planning, building, landscape and urban design, transport planning and environmental assessment. The results in the first half were held back by severe weather in Australia and continuing subdued levels of activity in property and public sector infrastructure development internationally:
|
|
2011
|
2010
|
|
|
H1
|
H1
|
|
Fee income (£m)
|
87.5
|
89.0
|
|
Underlying profit* (£m)
|
8.0
|
13.1
|
|
Margin %
|
9.2
|
14.7
|
*before amortisation of acquired intangible assets of £1.8 million (2010: £1.5 million)
and before reorganisation net income of £0.5 million (2010: £1.7 million cost)
Australia
The results for the period reflect the floods in January, followed immediately by cyclones. These significantly disrupted the Australian economy and the activities of many of our clients in the early months of the year. In the second quarter some of those clients re-established project activity somewhat earlier than previously anticipated. Infrastructure development markets related to energy and other natural resources projects, remained encouraging, although there have been operational delays in progressing some aspects of larger projects off the West Coast. Activity in the commercial development market continued to be subdued, primarily due to lack of project funding resulting from the continuing effects of the global financial crisis. Overall, we continue to expect an improved performance in the second half.
|
|
2011
|
2010
|
|
|
H1
|
H1
|
|
Fee income (£m)
|
42.2
|
34.3
|
|
Underlying profit* (£m)
|
4.7
|
6.5
|
|
Margin %
|
11.1
|
18.9
|
*before amortisation of acquired intangible assets of £1.4 million (2010: £1.0 million)
and before reorganisation net income of £1.4 million (2010: £1.1 million cost)
UK and Ireland
The process of developing the management and marketing activities in this merged business has proceeded satisfactorily, enabling further business opportunities to be identified and efficiency savings to be made. The results for the period have, therefore, been impacted by further reorganisation costs:
|
|
2011
|
2010
|
|
|
H1
|
H1
|
|
Fee income (£m)
|
45.3
|
54.7
|
|
Underlying profit* (£m)
|
3.3
|
6.6
|
|
Margin %
|
7.3
|
12.0
|
*before amortisation of acquired intangible assets of £0.4 million (2010: £0.4 million)
and before reorganisation costs of £0.9 million (2010: £0.5 million)
In the UK, after a slow start to the year, activity showed some improvement at the end of the first quarter. In the second quarter the market became subdued once again, although in recent weeks we have secured encouraging volumes of new business. We continue to focus on those markets and clients which have funded and fundable projects, such as the provision of energy infrastructure. Although the weak economic recovery remains a material constraint upon our activity levels, we are well positioned for recovery when it occurs. In Ireland, our future is tied closely to the financial situation and, therefore, the final resolution of the eurozone problems. Activity in the first quarter was reasonably encouraging. However, as a result of continuing poor economic and financial circumstances, further reductions in public sector spending have been made by the Government. In response to this we have reduced our cost base further. This included the reduction of rented office space, which required one off exit payments. The prospects for this business remain difficult to determine whilst external factors are so uncertain.
Environmental Management
This business provides consultancy services in respect of health, safety, risk, water and property management in the UK and the Netherlands. The first half results showed encouraging growth:
|
|
2011
|
2010
|
|
|
|
H1
|
|
Fee income (£m)
|
41.3
|
33.9
|
|
Underlying profit* (£m)
|
5.7
|
5.0
|
|
Margin %
|
13.7
|
14.7
|
*before amortisation of acquired intangible assets of £0.2m (2010: £0.2 million)
and before reorganisation costs of £0.1m (2010: £0.3 million)
Despite coming under significant pricing pressure, these businesses have delivered an excellent trading performance and sustained a good margin. We have begun to benefit from increasing AMP5 investment from our UK water company clients, related particularly to the difficulties a number have had meeting challenging environmental targets. Our health and safety, occupational health and risk management (particularly in the nuclear and defence sectors) activities remain at an encouraging level. Our Dutch business also performed well, benefiting from the stabilisation of the economy. Overall, it still appears we are likely to achieve good growth in this segment of the Group in the current year.
Group Prospects
As the impact of the severe weather in Australia reduces, as deep water drilling activity in the Gulf of Mexico increases and the acquisitions made in February and March continue to contribute, the second half should produce growth sufficient to enable current market expectations for 2011 to be achieved. Subject to economic recovery continuing and supporting the markets in which we operate, this should provide a platform for further progress in 2012.
Board of Directors
RPS Group plc
28 July 2011
|
Condensed consolidated income statement
|
|
|
|
|
|
|
|
|
|
|
Notes
|
Six months
ended
30 June
|
Six months ended
30 June
|
Year
ended 31
December
|
|
|
|
|
2011
|
2010
|
2010
|
|
|
£000’s
|
|
unaudited
|
unaudited
|
audited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
3
|
251,518
|
225,966
|
461,830
|
|
|
Recharged expenses
|
3
|
(38,663)
|
(33,438)
|
(68,568)
|
|
|
Fee income
|
3
|
212,855
|
192,528
|
393,262
|
|
|
|
|
|
|
|
|
|
Operating profit
|
3
|
19,816
|
23,086
|
46,309
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
(1,365)
|
(2,137)
|
(4,025)
|
|
|
Finance income
|
|
170
|
73
|
185
|
|
|
|
|
|
|
|
|
|
Profit before tax and amortisation of acquired intangibles
|
|
23,465
|
23,355
|
47,993
|
|
|
Amortisation of acquired intangibles
|
|
(4,844)
|
(2,333)
|
(5,524)
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
18,621
|
21,022
|
42,469
|
|
|
|
|
|
|
|
|
|
Tax expense
|
4
|
(5,586)
|
(6,559)
|
(10,733)
|
|
|
Profit for the period attributable to equity
holders of the parent
|
|
13,035
|
14,463
|
31,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (pence)
|
5
|
6.05
|
6.75
|
14.78
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (pence)
|
5
|
6.00
|
6.68
|
14.69
|
|
|
|
|
|
|
|
|
|
Basic earnings per share before amortisation of acquired intangibles (pence)
|
5
|
7.67
|
7.52
|
15.79
|
|
|
Diluted earnings per share before amortisation of acquired intangibles (pence)
|
5
|
7.61
|
7.44
|
15.69
|
|
Condensed consolidated statement of comprehensive income
|
|
|
|
|
|
|
|
|
Six months
ended
30 June
|
Six months ended
30 June
|
Year
ended
31 December
|
|
|
|
|
2011
|
2010
|
2010
|
|
|
£000’s
|
unaudited
|
unaudited
|
audited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
13,035
|
14,463
|
31,736
|
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
Exchange differences
|
4,738
|
(4,357)
|
6,978
|
|
|
Tax recognised directly in equity
|
|
188
|
(42)
|
85
|
|
|
|
|
|
|
|
|
Total recognised comprehensive income for the period attributable to equity holders of the parent
|
17,961
|
10,064
|
38,799
|
|
|
|
|
|
|
|
Condensed consolidated balance sheet
|
|
|
|
|
|
|
|
|
|
As at
30 June
|
As at
30 June
|
As at
31 December
|
|
|
|
|
2011
|
2010
|
2010
|
|
|
£000’s
|
Notes
|
unaudited
|
unaudited
|
audited
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Intangible assets
|
|
345,418
|
297,848
|
314,621
|
|
|
Property, plant and equipment
|
|
29,417
|
27,870
|
28,107
|
|
|
Investments
|
|
41
|
190
|
447
|
|
|
|
374,876
|
325,908
|
343,175
|
|
|
Current assets
|
|
|
|
|
|
|
Trade and other receivables
|
|
169,921
|
153,882
|
158,766
|
|
|
Cash at bank
|
|
17,855
|
11,620
|
13,933
|
|
|
|
187,776
|
165,502
|
172,699
|
|
Liabilities
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Borrowings
|
|
2,973
|
1,615
|
1,744
|
|
Deferred consideration
|
|
13,629
|
12,324
|
9,873
|
|
Trade and other payables
|
|
99,513
|
74,277
|
86,971
|
|
Corporation tax liabilities
|
|
2,836
|
5,305
|
2,618
|
|
Provisions
|
|
2,612
|
1,010
|
1,768
|
|
|
|
121,563
|
94,531
|
102,974
|
|
Net current assets
|
|
66,213
|
70,971
|
69,725
|
|
Non-current liabilities
|
|
|
|
|
|
Borrowings
|
|
50,690
|
50,942
|
43,726
|
|
Deferred consideration
|
|
13,404
|
10,250
|
8,661
|
|
Other creditors
|
|
1,247
|
1,718
|
1,052
|
|
Deferred tax liabilities
|
|
14,364
|
10,361
|
11,291
|
|
Provisions
|
|
2,998
|
2,626
|
3,177
|
|
|
|
82,703
|
75,897
|
67,907
|
|
Net assets
|
|
358,386
|
320,982
|
344,993
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Share capital
|
8
|
6,530
|
6,494
|
6,516
|
|
|
Share premium
|
|
102,911
|
100,375
|
101,941
|
|
|
Other reserves
|
9
|
49,339
|
34,900
|
45,581
|
|
|
Retained earnings
|
|
199,606
|
179,213
|
190,955
|
|
|
Total shareholders’ equity
|
|
358,386
|
320,982
|
344,993
|
Condensed consolidated balance sheet
|
|
|
|
|
|
|
|
|
|
As at
30 June
|
As at
30 June
|
As at
31 December
|
|
|
|
|
2011
|
2010
|
2010
|
|
|
£000’s
|
Notes
|
unaudited
|
unaudited
|
audited
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Intangible assets
|
|
345,418
|
297,848
|
314,621
|
|
|
Property, plant and equipment
|
|
29,417
|
27,870
|
28,107
|
|
|
Investments
|
|
41
|
190
|
447
|
|
|
|
374,876
|
325,908
|
343,175
|
|
|
Current assets
|
|
|
|
|
|
|
Trade and other receivables
|
|
169,921
|
153,882
|
158,766
|
|
|
Cash at bank
|
|
17,855
|
11,620
|
13,933
|
|
|
|
187,776
|
165,502
|
172,699
|
|
Liabilities
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Borrowings
|
|
2,973
|
1,615
|
1,744
|
|
Deferred consideration
|
|
13,629
|
12,324
|
9,873
|
|
Trade and other payables
|
|
99,513
|
74,277
|
86,971
|
|
Corporation tax liabilities
|
|
2,836
|
5,305
|
2,618
|
|
Provisions
|
|
2,612
|
1,010
|
1,768
|
|
|
|
121,563
|
94,531
|
102,974
|
|
Net current assets
|
|
66,213
|
70,971
|
69,725
|
|
Non-current liabilities
|
|
|
|
|
|
Borrowings
|
|
50,690
|
50,942
|
43,726
|
|
Deferred consideration
|
|
13,404
|
10,250
|
8,661
|
|
Other creditors
|
|
1,247
|
1,718
|
1,052
|
|
Deferred tax liabilities
|
|
14,364
|
10,361
|
11,291
|
|
Provisions
|
|
2,998
|
2,626
|
3,177
|
|
|
|
82,703
|
75,897
|
67,907
|
|
Net assets
|
|
358,386
|
320,982
|
344,993
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Share capital
|
8
|
6,530
|
6,494
|
6,516
|
|
|
Share premium
|
|
102,911
|
100,375
|
101,941
|
|
|
Other reserves
|
9
|
49,339
|
34,900
|
45,581
|
|
|
Retained earnings
|
|
199,606
|
179,213
|
190,955
|
|
|
Total shareholders’ equity
|
|
358,386
|
320,982
|
344,993
|
|
Condensed consolidated cash flow statement
|
|
|
|
|
|
|
|
|
Six months
ended 30
June
|
Six months
ended 30
June
|
Year ended
31 December
|
|
|
2011
|
2010
|
2010
|
|
£000’s Notes
|
unaudited
|
unaudited
|
audited
|
|
|
|
|
|
|
Cash generated from operations 11
|
27,678
|
21,071
|
57,874
|
|
Interest paid
|
(1,143)
|
(2,080)
|
(4,507)
|
|
Interest received
|
170
|
73
|
185
|
|
Income taxes paid
|
(6,764)
|
(8,479)
|
(14,384)
|
|
Net cash from operating activities
|
19,941
|
10,585
|
39,168
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Purchases of subsidiaries net of cash acquired
|
(11,202)
|
(2,465)
|
(4,418)
|
|
Deferred consideration
|
(3,111)
|
(5,688)
|
(13,626)
|
|
Purchase of property, plant and equipment
|
(3,812)
|
(3,713)
|
(6,856)
|
|
Sale of property, plant and equipment
|
109
|
122
|
3,193
|
|
Dividends received
|
256
|
-
|
116
|
|
Net cash used in investing activities
|
(17,760)
|
(11,744)
|
(21,591)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from issue of share capital
|
102
|
72
|
229
|
|
Purchase of own shares
|
(356)
|
-
|
-
|
|
Proceeds from/(repayments of) bank borrowings
|
7,005
|
5,682
|
(5,022)
|
|
Payment of finance lease liabilities
|
(689)
|
(739)
|
(1,491)
|
|
Dividends paid
|
(5,460)
|
(4,722)
|
(9,710)
|
|
Payment of pre-acquisition dividend
|
-
|
-
|
(694)
|
|
Net cash used in financing activities
|
602
|
293
|
(16,688)
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
2,783
|
(866)
|
889
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
13,933
|
13,691
|
13,691
|
|
|
|
|
|
|
Effect of exchange rate fluctuations
|
(185)
|
(1,205)
|
(647)
|
|
|
|
|
|
|
Cash and cash equivalents at end of period 11
|
16,531
|
11,620
|
13,933
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents comprise:
|
|
|
|
|
Cash at bank
|
17,855
|
11,620
|
13,933
|
|
Bank overdraft
|
(1,324)
|
-
|
-
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
16,531
|
11,620
|
13,933
|
|
|
|
|
|
|
Condensed consolidated cash flow statement
|
|
|
|
|
|
|
|
|
Six months
ended 30
June
|
Six months
ended 30
June
|
Year ended
31 December
|
|
|
2011
|
2010
|
2010
|
|
£000’s Notes
|
unaudited
|
unaudited
|
audited
|
|
|
|
|
|
|
Cash generated from operations 11
|
27,678
|
21,071
|
57,874
|
|
Interest paid
|
(1,143)
|
(2,080)
|
(4,507)
|
|
Interest received
|
170
|
73
|
185
|
|
Income taxes paid
|
(6,764)
|
(8,479)
|
(14,384)
|
|
Net cash from operating activities
|
19,941
|
10,585
|
39,168
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Purchases of subsidiaries net of cash acquired
|
(11,202)
|
(2,465)
|
(4,418)
|
|
Deferred consideration
|
(3,111)
|
(5,688)
|
(13,626)
|
|
Purchase of property, plant and equipment
|
(3,812)
|
(3,713)
|
(6,856)
|
|
Sale of property, plant and equipment
|
109
|
122
|
3,193
|
|
Dividends received
|
256
|
-
|
116
|
|
Net cash used in investing activities
|
(17,760)
|
(11,744)
|
(21,591)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from issue of share capital
|
102
|
72
|
229
|
|
Purchase of own shares
|
(356)
|
-
|
-
|
|
Proceeds from/(repayments of) bank borrowings
|
7,005
|
5,682
|
(5,022)
|
|
Payment of finance lease liabilities
|
(689)
|
(739)
|
(1,491)
|
|
Dividends paid
|
(5,460)
|
(4,722)
|
(9,710)
|
|
Payment of pre-acquisition dividend
|
-
|
-
|
(694)
|
|
Net cash used in financing activities
|
602
|
293
|
(16,688)
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
2,783
|
(866)
|
889
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
13,933
|
13,691
|
13,691
|
|
|
|
|
|
|
Effect of exchange rate fluctuations
|
(185)
|
(1,205)
|
(647)
|
|
|
|
|
|
|
Cash and cash equivalents at end of period 11
|
16,531
|
11,620
|
13,933
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents comprise:
|
|
|
|
|
Cash at bank
|
17,855
|
11,620
|
13,933
|
|
Bank overdraft
|
(1,324)
|
-
|
-
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
16,531
|
11,620
|
13,933
|
|
|
|
|
|
Condensed consolidated statement of changes in equity
|
£000’s
|
Share capital
|
Share premium
|
Retained earnings
|
Other reserves
(Note 9)
|
Total equity
|
|
|
|
|
|
|
|
|
Changes in equity during 2011
|
|
|
|
|
|
|
At 1 January 2011
|
6,516
|
101,941
|
190,955
|
45,581
|
344,993
|
|
Total comprehensive income for the period
|
-
|
-
|
13,223
|
4,738
|
17,961
|
|
Issue of new ordinary shares
|
14
|
970
|
(258)
|
(624)
|
102
|
|
Purchase of own shares
|
-
|
-
|
-
|
(356)
|
(356)
|
|
Share based payment expense
|
-
|
-
|
1,146
|
-
|
1,146
|
|
Dividends
|
-
|
-
|
(5,460)
|
-
|
(5,460)
|
|
|
|
|
|
|
|
|
At 30 June 2011
|
6,530
|
102,911
|
199,606
|
49,339
|
358,386
|
|
|
|
|
|
|
|
|
Changes in equity during 2010
|
|
|
|
|
|
|
At 1 January 2010
|
6,457
|
98,238
|
169,254
|
39,519
|
313,468
|
|
Total comprehensive income for the period
|
-
|
-
|
14,421
|
(4,357)
|
10,064
|
|
Issue of new ordinary shares
|
37
|
2,142
|
(1,257)
|
(262)
|
660
|
|
Share based payment expense
|
-
|
-
|
1,517
|
-
|
1,517
|
|
Expenses of issue of equity shares
|
-
|
(5)
|
-
|
-
|
(5)
|
|
Dividends
|
-
|
-
|
(4,722)
|
-
|
(4,722)
|
|
|
|
|
|
|
|
|
At 30 June 2010
|
6,494
|
100,375
|
179,213
|
34,900
|
320,982
|
Notes to the condensed consolidated financial statements
1. Basis of preparation
RPS Group Plc (the “Company”) is a company domiciled in England. The condensed consolidated interim financial statements of the Company for the six months ended 30 June 2011 comprise the Company and its subsidiaries (together referred to as the “Group”).
The condensed interim financial statements have been prepared using accounting policies set out in the Report and Accounts 2010. They are in accordance with IAS 34. The condensed interim financial statements are unaudited but have been reviewed by the Company’s auditors. The results for the year end 31 December 2010 and the balance sheet as at that date are abridged from the Company’s Report and Accounts 2010 which have been delivered to the Registrar of Companies. The auditors’ report on those accounts was unqualified, did not contain references to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498 (2) or 498 (3) of the Companies Act 2006.
The condensed interim financial statements do not constitute full accounts within the meaning of Section 434 of the Companies Act 2006.
In assessing the going concern basis, the directors considered: the Group’s business activities, the financial position of the Group and the Group’s financial risk management objectives and policies. The directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future and that it is, therefore, appropriate to adopt the going concern basis in preparing its financial statements.
2. Responsibility Statement
The directors confirm that, to the best of their knowledge this condensed set of financial statements has been prepared in accordance with IAS 34 and that this Interim Report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.
On behalf of the Board
A. S. Hearne - Chief Executive
G. R. Young - Group Finance Director
3. Business segments
Segment information is presented in respect of the Group’s business segments which are reported to the Chief Operating Decision Maker (CODM). The business segment reporting format reflects the Group’s management and internal structure. Inter-segment pricing is determined on an ‘arm’s length’ basis. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
As announced on 6 May 2011, the part of the Australian Energy business providing clients with environmental, climatic and oceanographic data is now the responsibility of the Australian Board. It is, therefore, now being managed as part of the Australia Planning and Development business, resulting in a restatement of the 2010 segment results.
The Group comprises the following business segments:
Planning and Development – consultancy services in the UK and Ireland and Australia relating to town and country planning, landscape and urban design, architecture, transport planning and highway design, environmental impact assessment and provision of water and waste utilities and energy infrastructure.
Environmental Management – consultancy services in the UK and the Netherlands related to property management, environmental science, the management of water resources and health, safety and risk management other than to the oil and gas sector.
Energy – the provision of a wide range of consultancy services including those related to health, safety and risk management, on an international basis, to the upstream oil and gas and offshore renewable energy sectors.
Segment results for the period ended 30 June 2011:
|
£000’s
|
Fees
|
Recharged
Expenses
|
Intersegment
revenue
|
External
Revenue
|
|
|
|
|
|
|
|
Planning and
Development:
|
|
|
|
|
|
UK and Ireland
|
45,335
|
7,846
|
(1,347)
|
51,834
|
|
Australia
|
42,165
|
8,890
|
(334)
|
50,721
|
|
Intra P&D
eliminations
|
(4)
|
-
|
4
|
-
|
|
Total Planning
and Development
|
87,496
|
16,736
|
(1,677)
|
102,555
|
|
Energy
|
85,503
|
17,882
|
(193)
|
103,192
|
|
Environmental
Management
|
41,284
|
4,797
|
(310)
|
45,771
|
|
Group eliminations
|
(1,428)
|
(752)
|
2,180
|
-
|
|
Total
|
212,855
|
38,663
|
-
|
251,518
|
|
£000’s
|
Underlying
profit
|
Reorganisation
costs
|
Amortisation
of acquired
intangibles
|
Segment
result
|
|
|
|
|
|
|
|
Planning and
Development:
|
|
|
|
|
|
UK and Ireland
|
3,326
|
(853)
|
(418)
|
2,055
|
|
Australia
|
4,680
|
1,371
|
(1,388)
|
4,663
|
|
Total Planning
and Development
|
8,006
|
518
|
(1,806)
|
6,718
|
|
Energy
|
14,324
|
(488)
|
(2,844)
|
10,992
|
|
Environmental
Management
|
5,652
|
(133)
|
(194)
|
5,325
|
|
Total
|
27,982
|
(103)
|
(4,844)
|
23,035
|
Revised segment results for the period ended 30 June 2010:
|
|
|
|
|
£000’s
|
Fees
|
Recharged
expenses
|
Intersegment
revenue
|
External
revenue
|
|
|
|
|
|
|
|
Planning and
Development:
|
|
|
|
|
|
UK and Ireland
|
54,691
|
8,226
|
(817)
|
62,100
|
|
Australia
|
34,338
|
9,057
|
(425)
|
42,970
|
|
Intra P&D
eliminations
|
(2)
|
-
|
2
|
-
|
|
Total Planning
and Development
|
89,027
|
17,283
|
(1,240)
|
105,070
|
|
Energy
|
71,306
|
12,357
|
(197)
|
83,466
|
|
Environmental
Management
|
33,868
|
3,937
|
(375)
|
37,430
|
|
Group eliminations
|
(1,673)
|
(139)
|
1,812
|
-
|
|
Total
|
192,528
|
33,438
|
-
|
225,966
|
|
|
|
|
|
|
|
£000’s
|
Underlying
profit
|
Reorganisation
costs
|
Amortisation
of acquired
intangibles
|
Segment
result
|
|
|
|
|
|
|
|
Planning and
Development:
|
|
|
|
|
|
UK and Ireland
|
6,584
|
(535)
|
(418)
|
5,631
|
|
Australia
|
6,507
|
(1,127)
|
(1,042)
|
4,338
|
|
Total Planning
and Development
|
13,091
|
(1,662)
|
(1,460)
|
9,969
|
|
Energy
|
12,103
|
(1)
|
(691)
|
11,411
|
|
Environmental
Management
|
4,980
|
(253)
|
(182)
|
4,545
|
|
Total
|
30,174
|
(1,916)
|
(2,333)
|
25,925
|
|
|
|
|
|
|
|
Group
reconciliation
|
|
|
|
|
|
£000’s
|
30 June 2011
|
30 June 2010
|
|
|
|
|
|
|
|
|
|
Revenue
|
251,518
|
225,966
|
|
|
|
Recharged
expenses
|
(38,663)
|
(33,438)
|
|
|
|
Fees
|
212,855
|
192,528
|
|
|
|
|
|
|
|
|
|
Underlying profit
|
27,982
|
30,174
|
|
|
|
Reorganisation
net income costs
|
(103)
|
(1,916)
|
|
|
|
Unallocated
expenses
|
(3,219)
|
(2,839)
|
|
|
|
Operating
profit before
amortisation
|
24,660
|
25,419
|
|
|
|
Amortisation
|
(4,844)
|
(2,333)
|
|
|
|
Operating profit
|
19,816
|
23,086
|
|
|
|
Finance costs
|
(1,195)
|
(2,064)
|
|
|
|
Profit before tax
|
18,621
|
21,022
|
|
|
|
Total segment assets were as follows:
|
|
|
|
|
|
£000’s
|
30 June 2011
|
31 December 2010
|
|
|
|
|
|
Planning and Development:
|
|
|
|
UK and Ireland
|
184,036
|
184,542
|
|
Australia
|
107,991
|
114,988
|
|
Total Planning and Development
|
292,027
|
299,530
|
|
Energy
|
199,176
|
151,323
|
|
Environmental Management
|
67,458
|
61,245
|
|
Unallocated
|
3,991
|
3,776
|
|
Total
|
562,652
|
515,874
|
4. Income taxes
The tax charge for the period has been calculated using the expected tax rate for the year in each tax jurisdiction. These rates have been applied to the pre-tax profits estimated for each jurisdiction for the year ended 31st December 2011 to derive a Group consolidated effective tax rate for the year. This rate is 30.0% and has been applied to the Group pre tax profit for the 6 months ended 30th June 2011 (for the year ended 31 December 2010: 25.3%; for the six months ended 30 June 2010: 31.2%). The tax rate for the year ended 31 December 2010 was materially affected by Tax Law Amendment (2010 Measures No. 1) Act 2010 being enacted in Australia. The Group effective tax rate for 2010 excluding this material one-off impact was 29.4%.
5. Earnings per share
The calculations of earnings per share are based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding during the period as shown below:
|
|
Six months
ended 30 June
|
Six months
ended 30 June
|
Year ended
31 Dec
|
|
£000’s
|
2011
|
2010
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary shareholders
|
13,035
|
14,463
|
31,736
|
|
|
|
|