RPS profit at bottom end

3rd Mar 2010 07:51

Environmental and planning consultancy RPS put in a "very respectable" performance in 2009, but signs are that market conditions at the start of 2010 will show little improvement from the end of 2009.Profit before tax and amortisation of acquired intangibles came in at £52.5m, down from £57.5m in 2008 and towards the bottom end of the £52m-£54.7m range of analysts' forecasts. The group, which provides independent technical and commercial advice to the oil and gas industry, said statutory profit dropped to £48.6m from £54.8m on revenue 6% lighter at £443.9m. Fee income fell to £374.4m from £392.1m.Economic and financial circumstances affected trading in the UK where revenue tumbled 15%, but the group received a £3.7m boost from sterling's weakness. "Our clients in the UK and Ireland are likely to remain cautious and cost conscious," warned chairman Brook Land. "We are more optimistic about prospects in Australia and hopeful about improvements in our Energy business in the second half.""Towards the end of the year we saw signs of increased levels of investment being considered by our clients, but it currently appears that market conditions in the first part of 2010 will show little improvement over the later parts of 2009," the company added."In consequence, pricing pressure is also likely to be a continuing feature of the commercial landscape. Conditions could improve in the second half." A final dividend of 2.19p a share means a payout of 4.2p for the year, up 15% on 2008.