RPS on track but trading mixed

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LONDON (ShareCast) - Natural resources, land and property consultancy group RPS Group (Xetra: 874849 - news) said that it remains on track to meet expectations this year with results for the first nine months of the year well ahead of the 2011.

The company said that it continues to secure over two-thirds of its fee income from the energy and energy infrastructure markets "in which we have an excellent international profile and which remain generally buoyant."

RPS's Energy (NYSEArca: JJE - news) division has seen increasing investment by its clients in oil and gas E&P (exploration and production) and "good" levels of demand, with the current high oil price doing its bit to help.

However, RPS highlighted that its Built and Natural Environment unit is experiencing difficult trading conditions.

In Built and Natural Environment, results continue to run ahead of last year, but the company acknowledged a "change in client sentiment in the second half in respect of investment in the infrastructure necessary to deliver energy and mining projects."

This meant that the company experienced lower levels of Asian demand for resources, escalating project costs and a trimming of growth in the economy.

Meanwhile, while European results are up year-on-year, the company saw a reduction in spend from some of its UK water company clients, as well as a reduction in client commissioning the in the private development sector. "There have only been limited signs of recovery since."

Chairman Brook Land said: "RPS remains in a strong position financially and operationally. Our strategy of developing our activities in energy and energy infrastructure markets, which have been less affected by economic uncertainty, continues to be successful. As a result, the group remains on course to meet market expectations for the full year." 

Shares were down 3.53% at 229.8p in early trading on Wednesday.