Multi-disciplinary consultancy RPS produced a steady set of half-year results as fee income increased slightly by 3.5 per cent, but operating profits fell 16 per cent to £25.4m as customers continued to push the limits on price.
Despite this, management is still fairly confident on the outlook and believe a "modest improvement in the second half is achievable". This led to the decision to increase the half-year dividend by 15 per cent to 2.31p a share. The group's largest division, energy, displayed "early signs of improvement", boosting the increase in fee income, along with risk management activities in the UK. Positively, the acquisition of Conics "materially strengthened" the group's market position in Australia, but exposure to Ireland, which is largely public-sector work, is still deteriorating.
When: 13/11/09
Price: 198p
Performance: -2.5%
