RPS Group on track to deliver growth this year

Multinational energy and environmental consultancy company RPS Group said it expects first half results to be in line with the previous year.

While the group experienced a slowdown in resource investments in the Australia, Asia Pacific region, the energy business remains on track to deliver growth this year, according to an interim management statement.

Oil and gas exploration expenditure in Australia and Asia Pacific fell due to increasing costs pressures while the US and Europe, Africa and Middle East rose on strong performance.

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In January, the company successfully integrated newly acquired Petroleum Institute for Continuing Education (PEICE), a Canadian based business providing geoscience and engineering training to the oil and gas industry.

RPS said PEACE should help offset weak results in Canada as its clients' potash projects move into a phase of the development cycle in which the group has less involvement.

Last month RPS announced the acquisition of Knowledge Reservoir in Houston for a maximum consideration of $20m, to strengthen its US business. Following reorganisation of non-US entities and integration of its US business it is expected to make a limited contribution this year and a full contribution in 2014.

The firm's Business New Europe (BNE) arm wielded robust results despite economic uncertainty which held back project investments in the first months of the year.

A strong position in the energy infrastructure market enabled the group to win projects. BNE results this year are expected to be in line with last year.

Net bank debt at the end of March was £9.1m, compared with £15.2m at the same time last year and £13.5m at the end of 2012.

RD