(Alliance News) - RA International Group PLC on Wednesday said it achieved a "significant" turnaround, as it celebrated a swing to annual profit, driven by cost savings offset by falling revenue.
The specialist provider of complex and integrated remote site services said 2023 pretax profit was USD201,000, swinging from a loss of GBP13.0 million in 2022. It made a similar forecast in a March trading statement, when it said 2023 marked its first profitable year since 2020.
This was despite revenue falling 7.3% to USD58.3 million from USD62.9 million, which was more than offset by cost of sales falling 26% to GBP49.9 million from GBP57.7 million, while it swung to a positive non-underlying items gain of GBP5.2 million from a negative GBP4.2 million.
Administrative expenses also ticked down to GBP11.6 million from GBP11.7 million.
"The board is pleased with the progress made in 2023 towards its key objectives of improving RA's financial stability, returning to profitability, and continuing to invest in the group's future growth and development," said Chief Executive Officer Soraya Narfeldt.
"In 2023, RA continued to deliver high-value, high-margin [integrated facilities management] projects and secured contracts in existing locations and new regions including Suriname, Ivory Coast, and Ethiopia. The refreshed RA Federal Services board brings a wealth of experience, leading to a significant improvement in new business opportunities and performance. We were very pleased with the sale of previously impaired assets, which has already resulted in follow-on work with a new client."
Looking ahead, Narfeldt continued: "The group has a healthy sales pipeline and is awaiting decisions on several large, high-quality bids across its core client base. If successful, these bids will diversify RA further by geography and client portfolio. Our focus in 2024 is to continue building on the significant progress made in 2023, improve cash flow further, and increase profitability."
Shares in RA International were up 15% to 8.65 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Ra Internation. (RAI)