RPS Group ups dividend despite Middle East challenges
RPS Group increased its dividend by 15% and said its full-year growth was on track to meet expectations despite uncertainties affecting the oil and gas sector.
RPS Group
221.00p
16:39 23/01/23
The company, which provides consultancy services to the natural resources, land and property sectors, said its balance sheet remained strong after £31m spent in acquisitions and £32m in investments during the first half.
In Australia, a number of projects were delayed or cancelled as RPS tried to remain focused on operational efficiency rather than capital spending.
RPS said the political tensions in the Middle East caused clients to delay investments, especially in Kurdistan and in Iraq.
Chairman Brook Land said the year has been challenging, with factors outside its control such as strength of sterling, reduced investment in the resources markets and tensions in the Middle East all hitting the business.
However, "the acquisition of a number of high quality businesses this year positions us well to achieve in 2015 the potential our strategy is capable of delivering", he said.
Numis analysts gave a ‘buy’ recommendation and a 315p price tag.
Shares were down 0.2% to 233p on Thursday at 15:08.