LONDON (Alliance News) - Energy consultancy RPS Group PLC on Tuesday said its results for 2016 will be weaker year-on-year as it continues to face challenges in the oil and gas sector, and said it has acquired a UK-based business.
RPS said it has seen significant reductions in the spending plans of customers in the oil and gas industry going into 2016, which has hit new commissions in all its oil and gas-exposed businesses in the first quarter.
RPS said it has continued to cut costs to cope with the problems and while its BNE:Europe business has continued to perform well, due to its lower exposure to oil and gas, the problems in the oil industry have weighed on the wider business.
The company said it expects its results to improve over the course of the year as it benefits from the cost cuts it has made, but without an improvement in market conditions, its overall results will be weaker year-on-year.
RPS also said it has struck a GBP13.0 million cash deal to acquire DBK, a Birmingham-based project management consultancy primarily focused on the UK property development industry.
RPS said the acquisition will help continue its push to diversify its revenue streams away from a reliance on the oil and gas sector.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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