TIDMRPS
RNS Number : 7570L
RPS Group PLC
30 April 2015
RPS Group plc
("RPS" or "the Group")
Further acquisition in Norway creating market leading position
in project management sector.
Trading update.
Acquisition
RPS announces the acquisition of Metier Holding AS ("Metier"), a
Norwegian based consultancy providing project management and
training services, for a maximum consideration of NOK 267million
(GBP22.3 million).
Metier operates across Norway from its headquarters in Oslo. The
company, which employs approximately 160 staff, was founded in 1976
and works primarily on projects associated with delivering public
and private sector infrastructure.
Metier trades within similar markets to OEC, the Norwegian
project management consultancy acquired by RPS in October 2013,
with less focus on the oil and gas sector. It has also developed an
internet based project management training capability. The
activities of the two businesses will be integrated to take
advantage of the market leading capability they will have in
combination. Although this will involve modest cost in 2015, the
transaction will be earnings enhancing in the current year.
The two businesses will, in total, have about three quarters of
their activities in built and natural environment markets. The
combined results will, therefore, from the Interim Results for
2015, be reported as part of BNE: Europe. OEC has been reported as
part of Energy. The restatements required for the 2014 Results
(Interim and Full Year) to provide year on year comparisons are
shown in Annex 1.
52% of the Metier shares are held by external investors. The
remaining 48% is held by 64 Metier staff, who are remaining with
the business.
In the year to 31 December 2014, Metier had revenues of NOK390
million (GBP32.6 million), and profit before tax of NOK35.3 million
(GBP3.0 million), after adjustment for non-recurring items. Net
assets at 31 December 2014 were NOK45.1 million (GBP3.8 million).
Gross assets at 31 December 2014 were NOK159.1 million (GBP13.3
million).
RPS is acquiring the entire share capital of Metier for a
maximum total consideration of NOK267 million (GBP22.3 million),
all payable in cash. Consideration paid to the vendors at
completion was NOK166.8 million (GBP14.0 million). Subject to
certain operational conditions being met, two further sums of
NOK49.2 million (GBP4.1 million) and NOK50.6 million (GBP4.2
million) will be paid to the vendors on the first and second
anniversaries of the transaction respectively.
Trading Update
As we anticipated the major issue facing the Group in the early
months of the year has been the continuing volatility in the oil
and gas sector and its impact on projects which are likely to be
progressed by our clients. National oil companies, to which we
provide extensive support, have been less affected than the
international companies. The market stabilisation which seemed to
be developing in February proved fragile. As a result our Energy
business has had a slower than expected start to the year, although
we have recently seen an encouraging increase in our asset
valuation workload, related to transactions and financing.
Our clients' E&P budgets for 2015 remain substantial and the
cost of executing their projects has reduced significantly. We
still anticipate an increased level of activity will develop during
the course of the year once specific project costs and plans have
been defined. We will also benefit from actions taken recently to
reduce our cost base.
RPS is a diverse company operating in a wide range of
geographies and sectors. Our other businesses have all grown year
on year assisted by the acquisitions made in 2014 and improving
economic circumstances in the UK and US. The integration of Klotz,
the water and transportation consultancy acquired in February 2015,
into our BNE: North America business has started well. The
rebalancing of our business in AAP towards the infrastructure and
development sectors continues positively. Further acquisitions are
under consideration.
Our balance sheet remains strong; net bank borrowings at the end
of March were GBP67.0 million (December 2014 GBP73.2m).
30 April 2015
Enquiries:
RPS Group plc Tel: 01235 863206
Dr Alan Hearne, Chief Executive
Gary Young, Finance Director
Instinctif Partners Tel: 020 7457 2020
Justine Warren
Matthew Smallwood
RPS is an international consultancy providing advice upon the
development of natural resources, land and property, the management
of the natural and built environments and the health and safety of
people. We have offices in the UK, Ireland, the Netherlands,
Norway, the United States, Canada and Australia Asia Pacific and
undertake projects in many other parts of the world. The Group is a
constituent of both the FTSE 250 and FTSE 4 Good Indices.
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
businesses of RPS Group plc. These statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements.
Annex 1
Segment results for the year ended 31 December 2014 as
restated
Intersegment External
GBP000's Fees Expenses revenue revenue
-------------------- -------- ----------- ------------- ---------
Energy 175,504 28,953 (680) 203,777
BNE Europe 186,288 22,274 (817) 207,745
BNE NA 41,322 5,916 (639) 46,599
AAP 103,615 10,557 (167) 114,005
Group eliminations (1,770) (533) 2,303 -
-------------------- -------- ----------- ------------- ---------
Total 504,959 67,167 - 572,126
-------------------- -------- ----------- ------------- ---------
Underlying Reorganisation Segment
GBP000's profit costs profit
------------ -------------- --------------- --------
Energy 35,131 (167) 34,964
BNE Europe 25,170 (253) 24,917
BNE NA 9,112 - 9,112
AAP 9,639 (1,419) 8,220
Total 79,052 (1,839) 77,213
------------ -------------- --------------- --------
Segmental results for the year ended 31 December 2014 as
originally presented
Intersegment External
GBP000's Fees Expenses revenue revenue
-------------------- -------- ----------- ------------- ---------
Energy 205,055 29,492 (680) 233,867
BNE Europe 156,737 21,735 (817) 177,655
BNE NA 41,322 5,916 (639) 46,599
AAP 103,615 10,557 (167) 114,005
Group eliminations (1,770) (533) 2,303 -
-------------------- -------- ----------- ------------- ---------
Total 504,959 67,167 - 572,126
-------------------- -------- ----------- ------------- ---------
Underlying Reorganisation Segment
GBP000's profit costs profit
------------ -------------- --------------- --------
Energy 38,973 (167) 38,806
BNE Europe 21,328 (253) 21,075
BNE NA 9,112 - 9,112
AAP 9,639 (1,419) 8,220
Total 79,052 (1,839) 77,213
------------ -------------- --------------- --------
Reclassifications for the year ended 31 December 2014
Intersegment External
GBP000's Fees Expenses revenue revenue
-------------------- --------- ----------- ------------- ---------
Energy (29,551) (539) - (30,090)
BNE Europe 29,551 539 - 30,090
BNE NA - - - -
AAP - - - -
Group eliminations - - - -
-------------------- --------- ----------- ------------- ---------
Total - - - -
-------------------- --------- ----------- ------------- ---------
Underlying Reorganisation Segment
GBP000's profit costs profit
------------ -------------- --------------- --------
Energy (3,842) - (3,842)
BNE Europe 3,842 - 3,842
BNE NA - - -
AAP - - -
Total - - -
------------ -------------- --------------- --------
Segment results for the half year ended 30 June 2014 as
restated
Intersegment External
GBP000's Fees Expenses revenue revenue
-------------------- -------- ----------- ------------- ---------
Energy 88,805 14,167 (328) 102,644
BNE Europe 90,866 9,669 (372) 100,163
BNE NA 19,017 2,319 (413) 20,923
AAP 50,843 4,843 (40) 55,646
Group eliminations (933) (220) 1,153 -
-------------------- -------- ----------- ------------- ---------
Total 248,598 30,778 - 279,376
-------------------- -------- ----------- ------------- ---------
Underlying Reorganisation Segment
GBP000's profit costs profit
------------ -------------- --------------- --------
Energy 16,672 - 16,672
BNE Europe 11,772 (144) 11,628
BNE NA 4,185 - 4,185
AAP 4,782 (853) 3,929
Total 37,411 (997) 36,414
------------ -------------- --------------- --------
Segment results for the half year ended 30 June 2014 as
originally presented
Intersegment External
GBP000's Fees Expenses revenue revenue
-------------------- -------- ----------- ------------- ---------
Energy 104,130 14,426 (328) 118,228
BNE Europe 75,541 9,410 (372) 84,579
BNE NA 19,017 2,319 (413) 20,923
AAP 50,843 4,843 (40) 55,646
Group eliminations (933) (220) 1,153 -
-------------------- -------- ----------- ------------- ---------
Total 248,598 30,778 - 279,376
-------------------- -------- ----------- ------------- ---------
Underlying Reorganisation Segment
GBP000's profit costs profit
------------ -------------- --------------- --------
Energy 18,304 - 18,304
BNE Europe 10,140 (144) 9,996
BNE NA 4,185 - 4,185
AAP 4,782 (853) 3,929
Total 37,411 (997) 36,414
------------ -------------- --------------- --------
Reclassifications for the half year ended 30 June 2014
Intersegment External
GBP000's Fees Expenses revenue revenue
-------------------- --------- ----------- ------------- ---------
Energy (15,325) (259) - (15,584)
BNE Europe 15,325 259 - 15,584
BNE NA - - - -
AAP - - - -
Group eliminations - - - -
-------------------- --------- ----------- ------------- ---------
Total - - - -
-------------------- --------- ----------- ------------- ---------
Underlying Reorganisation Segment
GBP000's profit costs profit
------------ -------------- --------------- --------
Energy (1,632) - (1,632)
BNE Europe 1,632 - 1,632
BNE NA - - -
AAP - - -
Total - - -
------------ -------------- --------------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
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