In the last edition of MoneyWeek (page 38) there is reference to this stock and the fact that a Fund manager has 2.84% of his funds in it. So far, what little I can glean of it indicates a setback at some point in the past BUT the prospects of a brighter future and this does NOT seem to be reflected in the price. Title od the stock is somewhat confusing in that it changed its name and the old title told you exactly what they did but the new one reflects nothing.Comments from all you wise old birds out there, please.

RPS Group: Investec revises target price from 275p to 310p keeping a buy recommendation.

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27th Jan 2016
StockMarketWire.com
RPS GROUP said despite the turmoil in the oil and gas sector, its accounts indicate trading results for 2015 were within the range of market views.

This reflects the strength RPS derives from its diverse activities.

It said 2015 was characterised by a significant reduction in investment by our oil and gas clients.

Even after major cost reductions, the contribution from the company's Energy business reduced substantially.

After a period of modest recovery in the first half of the year, the oil price declined 40% in the second half. In consequence, market conditions deteriorated further in the final months of the year.

"Our other businesses, with the benefit of a number of high quality acquisitions, grew their profit in 2015," the company said in a statement.

"The repositioning of our AAP business away from the resources sector progressed well. Similar repositioning in BNE:NorthAmerica is at an earlier stage, but has started to work effectively. Our BNE:Europe business is taking good advantage of its improving markets.

"The oil price continued to fall sharply in the early weeks of 2016. With the likelihood of further significant reduction in investment by our clients, we have decided to reduce again the capacity of the Energy business.

"We are, as part of the audit process, reviewing the value of intangible assets held on the balance sheet in relation to acquisitions in the oil and gas sector.

"It currently seems likely this will result in a non cash impairment charge of up to about £20 million, which will be accounted for in the 2015 results. This reflects current market conditions, but does not affect the strong position of our Energy business in this long term market.

"In the current environment the risk of suffering bad debts, in respect of a small number of oil and gas clients, has increased.

"We are, therefore, reviewing the debtor exposure in the Energy business and may need to provide for doubtful debts up to about £7 million. Any charge needed would also be taken in respect of the 2015 results.

"Our operating cash flow and conversion of profit into cash in 2015 was, once again, strong. The ability of RPS to continue to generate good cash flow is testament to the robust nature of our business."