Shares in RPS plunged 9% today as the city reacted badly to the group’s interim results, published this morning.
According to the firm’s interim results, for the first six months of 2009 revenue has dipped slightly, down to £221.5M from £225.9M over the same period last year.
The company also completed the takeover of Australian firm Conics, and absorbed £2.2M in reorganisation costs to deal with the recession.
Profits before tax has increased slightly, from £27.4M last year to £27.5M this year.
Revenue and profit remained steady in the company’s energy and environmental management divisions, but fell in their planning and development division. “However, continuing economic uncertainty inevitably means that they [clients] remain cautious and cost conscious when making specific project investment decisions. As a result, we may continue to experience pricing pressure and delays to some projects, until economic prospects become clearer,” read the statement.
RPS chairman Brook Land said: “RPS has a diverse range of activities and a resilient business model, which has enabled us to deliver good results in a range of circumstances for many years. This has been confirmed again during the first half of 2009, when a number of our markets were adversely affected by the economic downturn. We still won a significant volume of new business and the steps we took to deal with these conditions enabled the Group to maintain its level of profitability in this period.
“We have been identified as Britain’s third best employer for 2009 by the Corporate Research Foundation. Our staff at all levels deserve considerable praise and thanks for the businesslike and effective way they have adjusted to circumstances which have changed significantly, often quite rapidly. Our skill base remains intact; this wealth of experience will enable the company to move forward and all staff to benefit as economic circumstances improve.
“The acquisition of Conics strategically advances the development of our business in Australia, where we see opportunities to achieve important expansion. Beyond that we are well positioned to assist in finding the solutions to the related problems of energy security, supply and climate change which continue to move centre stage in the global political and economic debate.”