RPS confirms its 2014 growth had been affected by sterling

1st May 2014 08:38

Shares in FTSE 250-listed RPS Group dipped slightly on Thursday morning after the group confirmed the anticipated impact of sterling on its growth since the start of the year. However, the natural resources consultancy said it had sufficient resources to maintain the usual rate of growth in the dividend, as well as to continue with its acquisition strategy. "The group continued to grow well in the early part of 2014, supported by the acquisitions made in 2013," it said."We remain focussed on delivering a satisfactory result for the year. RPS is financially strong, with resources to continue its acquisition strategy."The Energy division continued to benefit from good levels of demand from oil and gas companies in many parts of the world, as well as from the financial services sector. It explained that although some of its client continued to manage expenditure more tightly, it was still able to position itself on major projects globally. However, the Canadian potash market remained subdued. "With the need for energy supply set to grow significantly in the long term, we anticipate demand for our services from the oil and gas sector will continue to expand," the group predicted. It reported a decent performance by its BNE business in Europe, and said overall its European business "retains the potential to achieve growth this year". BNE North America is well positioned in the expanding energy infrastructure market, it added. "The strengthening of the US economy, the investment in shale oil and gas and the exposure of the Canadian economy to natural resources provides us with a significant market opportunity," it said. "However, in this buoyant market, staff retention and recruitment has become exceptionally difficult, limiting our immediate potential." Meanwhile, trading in the first quarter in Australia and Asia Pacific was lower compared to the same period a year earlier, although the group continued to reduce its cost base in order to sustain efficiency.NR