The RPS Board is proposing an interim dividend of 0.45p per ordinary share (H1 2021: 0.26p per ordinary share). This is in line with the dividend policy announced at the November 2021 Capital Markets Day. It will be paid on 11 October 2022 to shareholders on the register of members at the close of business on 16 September 2022.
Other financial highlights include:
Recommended cash offer for RPS at a price of 206p per share by WSP Global Inc. as set out in the separate Rule 2.7 firm offer announcement released on RNS this morning
H1 2022 performance exceeded board expectations
Strong Fee Revenue growth of 13% (at constant currency) driven by strong demand for their services, growing order books and increased headcount
Further 120bps increase in adjusted operating margin with pricing keeping pace with inflation and improving operational leverage
Continued strong cash performance on the back of disciplined billing and cash collections with lock up days better than industry average at 58 days at end of June 2022 (June 2021: 60 days)
Last twelve months cash conversion 77% (FY 2021 73%, H1 2021 90%)
As anticipated, net bank borrowings increased to £34.4 million at 30 June 2022 (30 June 2021: £27.8 million) as a result of continued investment in growth, with significant headroom on financing facilities to support further growth
Net debt to EBITDA (leverage) at 30 June 2022 of 0.9x (30 June 2021: 1.0x), remains below their target range of 1.0x to 2.0x providing the ability to support further growth
Positioned to deliver further Fee Revenue growth with strong market drivers and increased demand for their services resulting in the total contracted order book (COB) up 15% on June 2021 at constant currency
