RPS to grow profits in 2012 despite Eurozone pressures

7th Mar 2012 07:14

It was the firm's activities in the energy sector, largely outside the troubled Eurozone, which ensured RPS Group, the acquisitive development, environmental and energy resources consultancy, grew profits in 2011.The group noted that more than two-thirds of its underlying profit is now earned outside Europe, as it unveiled full year profits before tax, amortisation and transactions costs for 2011 of £50.8m, up from £48.0m the year before, and marginally ahead of market expectations of £50.6m. The statutory profit before tax figure, however, eased to £40.5m from 2010's £32.5m.Group revenue rose to £528.7m in 2011 from £461.8m the year before, while fee income jumped to £452.7m from £393.3m.Adjusted earnings per share (EPS) improved to 16.68p from 15.79p, but statutory EPS dipped to 13.49p from 14.78p.The Energy division saw fee income rise to £186.1m in 2011 from £146.8m in 2010, while its contribution to underlying profit surged to £32.1m from £25.3m in 2010. The margin remained at 17.2%.The Built and Natural Environment (BNE) division's fee income rose to £269.1m from £248.8m the year before. BNE's underlying profit slipped to £29.0m from £33.0m in 2010, with the margin declining to 10.8% from 13.3%.The uncertainties in parts of the European BNE business are greater than in other parts of the group as a result of the subdued economic prospects of the UK and the Eurozone, the group said. This is likely to continue to create volume and pricing pressures which are likely to restrict growth opportunities in 2012.In the Asia-Pacific region, the Australian resource sector is doing well but other parts of the Aussie economy are less buoyant. The group is shifting its focus away from the slower moving parts of the Australian economy and is confident that BNE's Asia-Pacific operations will deliver further growth in 2012."We believe that our strategy of building multi-disciplinary businesses in each of the regions in which we operate to be attractive and achievable. We will, therefore, continue to develop our business organically, whilst seeking further acquisition opportunities. Our balance sheet is strong enough to continue to support this strategy," the company said.Year end net bank borrowings declined to £23.5m from £31.5m at the end of 2010, despite the group having invested £27.2m in acquisitions during 2011."We were able to deliver growth in 2011 and remain on track to produce further growth in 2012. The acquisitions made in 2011 have continued our international diversification. This is a trend we anticipate will continue, further strengthening our prospects," the group said.The full year dividend has been hiked to 5.56p from 4.83p the year before. jh