(Alliance News) - RPS Group PLC on Thursday said its performance in the third quarter showed "pleasing signs of recovery" as fee revenue rose from the second quarter.
The environmental, health, safety and risk consulting group stated for the three months ended September 30, fee revenue was GBP109.0 million. While this was down from GBP132.0 million recorded for the third quarter of 2019, it was an improvement from GBP107.0 million recorded for the second quarter of 2020.
The Oxfordshire, England-based company said its Energy operations and training businesses have been significantly hurt by Covid-19 and oil price fluctuations, noting that while the business segment will be slower to return to pre-Covid activity levels, it represents less than 16% of group fee revenue for the third quarter.
For the Consulting UK & Ireland business segment, RPS noted that while Covid has continued to negatively affect private sector work and the property sector, activity as started to increase and the public sector-exposed businesses continue to perform well.
Fee Revenue from its UK water business improved in the third quarter. The company highlighted that the backlog of work in Health and Laboratories which built up in the first half is starting to come through with Netherlands having a solid quarter as it added it has recently been retained by Welsh Water as its leakage field service specialists for the next five years.
Fee revenue in Norway was down 4.0% year-on-year, the Australia Asia Pacific grew by 7.0% in constant currency, and third quarter fee revenue and profit margins in the North American business improved from the second quarter.
Looking ahead, Chief Executive John Douglas said: "Our performance in the third quarter is consistent with our expectations at the half year and RPS is now starting to benefit as market conditions show some improvement. With the successful share placing and amendments to our banking arrangements now complete, we have the flexibility to take a medium to longer-term view on our business and remain confident in our ability to continue to benefit as market conditions improve."
However, RPS added: "We remain cautious and continue to suspend guidance due to the uncertain macro-economic climate and the potential further restrictions arising from the increasing number of Covid-19 cases in the UK and North America."
As at September 30, the company had available cash of GBP22.6 million and committed bank facilities of GBP160.0 million
By Ife Taiwo; ifetaiwo@alliancenews.com
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