RPS confident after tough year

2nd Mar 2011 07:59

Public sector spending cutbacks in the UK and Ireland hit profits at environmental consultant RPS Group, but Australia was a bright spot.Adjusted profit before tax for 2010 was in line with market expectations at £48.0m, down from £52.5m in 2009.Though operating profit from planning and development consultancy work fell to £20.2m from £23.9m a year earlier, the Australian unit saw an improvement in profits to £9.4m from 2009's £8.3m. This failed to cancel out the decline in the profits from activity in the UK & Ireland, where operating profits tumbled to £10.8m from £15.6m.The early effects of reduced public expenditure began to be felt by the year end, particularly in Scotland, while the weak state of public finances in the Republic of Ireland continued to put pressure on RPS's business throughout the year.Operating profit in the energy business eased to £27.3m from £27.7m the year before, partly reflecting the moratorium on deepwater drilling in the Gulf of Mexico following the Macondo well disaster, while the environmental management division's operating profit fell to £9.4m from £10.0m in 2009.Group revenue advanced to £461.8m from £443.9m.Despite spending £18m on acquisitions during 2010 the group's net borrowings ended the year slightly lower at £31.5m compared to £32.8m at the end of 2009.The full year dividend has been increased by 15% to 4.83p from 4.20p in 2009."The board is confident that once we get through the hiatus caused by the extreme weather in Australia and sustainable economic growth resumes, the group will experience another extended period of good growth," said RPS chairman Brook Land.