RPS gives mixed trading update

Natural resources consultancy RPS says it is beginning to see benefits from moving into energy and infrastructure markets but is still seeing mixed results from the rest of the business.

In the Energy division, clients' investment in conventional oil and gas exploration and production continued to grow while the "unconventionals" market shifted from gas to liquids. North America was strong while, in the wake of the Arab Spring, north Africa was weak.

The Built and Natural Environment ("BNE") business in Europe made "some" progress compared with the same period last year but clients "remain cautious about investing in capital projects."

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The BNE business in Australia Asia Pacific produced significantly better results than in the same period in 2011 benefiting from the high levels of investment in the infrastructure necessary to deliver coal seam gas and associated LNG projects, particularly in Queensland.

RPS had a falling out with its auditors Ernst & Young last year over the interpretation of accounting rules on "deferred consideration". The group says it is now awaiting the results of a review of the IFRS3 standard by the global accounting authorities before deciding on its position.

The shares had dropped 0.3% by 09:34.

BS