Slow recovery continues at RPS

28th Oct 2010 08:33

Environmental consultant RPS Group is on track to meet full year targets though a number of pitfalls could yet blow the company off track."Our trading in the third quarter indicated that, unless there is another global economic downturn, the worst effects of recession on the group are probably over and full year market expectations remain achievable. However, uncertainties remain for a number of our clients and, consequently, for us," the company said.The company's Energy business continued to experience improving conditions in the third quarter, though it has not yet recovered to the sort of level where the company would feel comfortable raising prices.RPS played down its exposure to the UK public sector and therefore the fall out from the government's comprehensive spending review, but conceded that "the recent spending review undoubtedly delayed investment decisions by some of our private sector property development clients." This, in combination with changes to the development planning system introduced by the new government, slowed the flow of new commissions. It is likely to take some time for RPS's clients to work through the full effects of both these factors. Clients in the retail sector have, however, shown more confidence and progressed schemes for their own occupation through all phases of the planning and development cycle.The Environmental Management businesses in the UK benefited from stable levels of activity. Work in regulated health and safety markets remained at encouraging levels and there are signs that the water companies are prepared to kick off their major capital expenditure programmes."About two thirds of group activity is currently focussed on projects related to securing energy supplies, the infrastructure necessary to deliver those supplies and the Australian economy," revealed company chairman Brook Land. "This, the strength of our balance sheet and the continuation of our acquisition strategy, gives us confidence about our prospects as the global economy improves," he added.