(Alliance News) - RPS Group PLC on Thursday said it has suffered the loss of a contract in Australia, following complications arising from ongoing takeover proceedings.
In September, the Abingdon, England-based professional services firm backed a GBP636.0 million takeover offer from Tetra Tech Inc for 222.00 pence per RPS share, and withdrew its recommendation for a bid by WSP Group Holdings Ltd, a subsidiary of Toronto-listed consultancy firm WSP Global Inc.
The company called a general meeting for November 3 to seek shareholder approval for the deal, which is at a 7.8% premium to the 206.00 pence offered by WSP.
However, RPS said that while it had seen good growth for its contracted order book in the UK, Ireland and Norway, potential conflicts of interest had arisen in Australia as a result of the cancelled takeover offer from WSP, losing it a contract.
RPS did not elaborate on what these conflicts of interest were, or which contract it had lost, in its update.
For the three months ended September 30, the firm reported fee revenue of GBP144.9 million, up 15% from GBP120.1 million a year prior.
For the year to date, fee revenue at constant currency was up by 14% to GBP412.3 million, from GBP326.0 million a year prior.
RPS attributed growth to positive market trends in urbanisation, natural resources and sustainability. It said these were reflected in its contracted order book at September 30, up 5.0% from a year prior.
RPS shares were down 0.5% at 219.00p each in London on Thursday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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