RPS (RPS) has conducted a global staff survey in an effort to tackle "retention and recruitment challenges", which hurt trading in the UK and Ireland consulting division, the North American division, and the Australia-Asia Pacific region. Operating profits fell in each of these geographies over the last year.
Chief executive John Douglas said various problems had afflicted the business, including the desire for better staff development and "tighter bonus programmes". More specifically, Mr Douglas admitted to "underpaying junior staff in parts of Ireland" and suggested that "a leadership problem" had caused some office unhappiness. To remedy this, RPS has put investment in staff and human resources functions at the centre of its 'transition' plan.
Acquisitions are also part of this plan. RPS announced the AUS$32m (£17.4m) acquisition of Corview, an Australian-based transport consultancy business, in February. And while the business is on the hunt for further deals, Mr Douglas says he remains “selective”. After all, the much-prized dividend is only covered 1.3 times by non-adjusted earnings.
Analysts at Peel Hunt forecast pre-tax profits and EPS of £50.8m and 15.8p, respectively, in 2019, compared with £50.2m and 15.9p in 2018.
| RPS (RPS) | ||||
| ORD PRICE: | 173p | MARKET VALUE: | £391m | |
| TOUCH: | 171-173p | 12-MONTH HIGH: | 280p | LOW: 125p |
| DIVIDEND YIELD: | 5.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 167p* | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 572 | 46.3 | 15.2 | 8.47 |
| 2015 | 567 | 9.9 | 3.1 | 9.74 |
| 2016 | 594 | 32.8 | 11.4 | 9.74 |
| 2017 | 631 | -1.6 | -7.5 | 9.88 |
| 2018 | 637 | 41.0 | 13.2 | 9.88 |
| % change | +1 | - | - | - |
| Ex-div: | 22 Apr | |||
| Payment: | 17 May | |||
| *Includes intangible assets of £386m, or 171p a share | ||||
