RPS.L Regulatory News (RPS)

RPS Group plc

('RPS' or the 'Group')

Q3-2022 Trading Update

Delivering continued growth

RPS, a leading multi-sector global professional services firm, provides the following trading update for the quarter ended 30 September 2022 ('Q3-2022' or the 'period').

Delivering continued growth

Performance for the period remained strong, with 15% growth in Fee Revenue at constant currency on Q3-2021. Fee Revenue in Q3-2022 was £144.9 million (Q3-2021: £120.1 million, £126.0 million at constant currency). Year to date Fee Revenue is up 14% at constant currency at £412.3 million (2021: £353.6 million, £362.0 million at constant currency).

Positive market trends in urbanisation, natural resources and sustainability continue to drive our business. This is reflected in the Group's contracted order book (COB) at 30 September 2022, which was up 3% on December 2021 and 5% on Q3-2021. Good growth in COB in Energy, Consulting UK & Ireland and Norway continues. As expected, COB in Services UK & Netherlands is reducing as we work our water frameworks. In Australia some potential conflicts of interest arising from the takeover offer from WSP have resulted in the cancellation of a contract, hence impacting COB.

Disciplined cash performance and strong balance sheet

Cash flow continues to be tightly managed with net bank borrowings at 30 September 2022 of £44.3 million (1 October 2021 £34.3 million, 31 December 2021: £13.5 million). The increase in the period was driven by Fee Revenue growth, lock up days normalising, investment in capex, increasing legal costs on the US Federal Government investigation, and payment of transaction costs in respect of the expected takeover. Lock up days at 30 September 2022 were 64 days (1 October 2021: 61 days, 31 December 2021: 49 days) and remain industry leading.

Financial leverage of Net Debt/rolling 12-month EBITDA was 1.1x at 30 September 2022, in line with the Group's target range of 1.0x to 2.0x Net Debt/EBITDA.

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of RPS Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are many factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

The above announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation.

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Notes to Editors

Founded in 1970 and built on a legacy of environmental and social engagement, RPS is a diversified global professional services firm of circa 5,000 consultants, designers, planners, engineers, and technical specialists.

As an established technology enabled consultancy, RPS provides specialist services to government and private sector clients.

RPS creates shared value for all stakeholders. Focusing on Natural Resources, Urbanisation, and Sustainability, RPS concentrates its expertise on the parts of project lifecycles that have the biggest impact on project outcomes. Solving problems that matter in a complex, urbanising, resource-scarce world.

Listed on the Main Market of the London Stock Exchange (LSE: RPS.L), RPS is classified within the Professional Business Support Services subsector.

For further information, please visit www.rpsgroup.com.