Shares in engineering consultant RPS (RPS) fell by 11 per cent to 223p after the company said a slowdown in the Australian resources sector has continued. We are sticking with our buy recommendation (248p, 7 March 2013), though, as management believes the Energy business - 55 per cent of operating profit - is on track to deliver a stronger second half.
IC TIP:
Buy
at
223p
The Built and Natural Environment business reported delayed projects in Europe due to economic uncertainty but, with stable energy infrastructure expenditure, it is still expecting results to be broadly flat on the prior year. And it wasn't all bad news for the Energy business as RPS added that its two largest regional businesses, in the US and Europe, are performing well.