RPS Group says 2016 almost as good as 2015

RPS Group updated the market on its performance on Thursday, ahead of the announcement of its full year results for 2016 on 2 March.

The London-listed firm said unaudited management accounts indicated that trading for 2016, as measured by profit before taxation and amortisation, approached the level of the 2015 audited result.

It said the second half performance in 2016 was materially better than the first half, having benefited from improved profitability in energy, significant currency movements and a lower level of reorganisation cost.

“The group's 2015 result included a £7m provision for doubtful debts in energy,” the board said in a statement.

“Towards the end of 2016 a significant proportion of the debt provided was recovered, resulting in the reversal of provisions totalling approximately £4.2m.

“Even excluding this provision reversal, the group result was still well above current market expectations.”

The group's conversion of profit into cash in the year was strong, the board reported.

Year-end net bank debt reduced to around £84m, from £95m at the end of June, and as a result, year-end leverage reduced to approximately 1.6x, from 2.2x at the end of June.

“The board anticipates recommending a final dividend per share which, if approved, would result in an unchanged full year dividend of 9.74p.”