Last month, we ventured that RPS Group (RPS), one of the IC’s Tips of the Year, had “significant recovery upside” based on a lowly price-to-forward-sales ratio, but timing said recovery is always problematic.
IC TIP:
Buy
at
251p
In the event, the energy resources and environmental consultancy has just confirmed that its second half performance has strengthened, aided by currency translation benefits and reduced reorganisation costs. In addition, there was good news linked to a £7.0m provision for doubtful debts in the energy segment booked in the full-year result for 2015. Management now advises that a significant proportion of these debts were recovered towards the end of last year, resulting in a reversal of provisions totalling approximately £4.2m.
