RA International Group PLC – Results

RA International Group PLC (AIM: RAI), a leading provider of services to remote locations in Africa and the Middle East, is pleased to announce its results for the year ended 31 December 2018. 

	2018 USD’000	2017 USD’000	Change
		Restated¹
Revenue	54,805	51,215	+7%
Underlying profit²	13,252	12,471	+6%
Profit (after exceptional items)	9,954	12,471	(20%)
Normalised EPS (cents)³	8.4	8.9
Basic EPS (cents)	6.3	8.9
Net Cash (end of period)4	27,804	5,602

Financial highlights

• Admission to AIM on 29 June 2018 raised gross proceeds of £18.8m (approximately USD 24.7m)
• Full year revenue increased 7% to USD 54.8m (2017: USD 51.2m)
• Underlying profit increased by 6% to USD 13.3m (2017: USD 12.5m) on margin of 24% (2017: 24%)
• Profit decreased to USD10.0m (2017: 12.4m) as a result of USD 3.3m in exceptional items being charged in the period, primarily relating to the IPO
• Cash of USD 27.8m (2017: USD 5.6m) and no debt as at 31 December 2018
• Proposed final full year maiden dividend of 1.0p per share

Operational highlights

• Strong progress across all strategic objectives
• Significant contracts awarded in the year:
  –  USD 19.9m contract with UNICEF to provide accommodation and office services, recently uplifted to USD 22.8m
  –  USD 30.4m contract with United Nations Support Office in Somalia to construct power infrastructure
  –  USD 9.1m contract with URS Group, a subsidiary of AECOM, to construct a runway
  –  USD 5.6m contract with a large US company to provide support services in Central Africa
  –  USD 5.6m contract with UK MOD for construction and IFM services in Oman
• Contracted revenue backlog of USD 119m (2017: USD 112m) at year end and awaiting award notification on a number of large bids
• Average contract term of 4.4 years (2017: 4.0 years) when weighted by contract value
• Significantly expanded operations; entering Mali, Oman, and Sudan and executing projects in 9 countries during the year (2017: 6)
• Increased the capacity and capability of our management and administrative teams through adding a number of senior hires
• Established a group Project Management Office in Nairobi in readiness for future growth and to support multiple large-scale projects
• The credibility gained from the Admission to AIM has led to invitations to bid for opportunities which were previously unavailable to us, both from existing and new customers

Post year end highlights and Outlook

• Significantly expanded operating footprint in Mozambique through the purchase of a 49% interest in Royal Food Solutions S.A and the acquisition of land to develop a large camp facility
• Signed a Master Service Agreement with IAP Worldwide Services to provide global supply chain services. The first order is for USD 8.5m and relates to sub-Saharan Africa
• Awarded a number of new contracts and contract extensions; contracted revenue backlog is now USD 130m, providing a sound platform for growth
• 2019 revenue expected to grow by approximately 10%
• Several large bids with humanitarian and commercial organisations are in progress, some of which are transformational in nature. Due to longer sales cycles, the Company is not currently anticipating significant revenue generation from these projects in 2019

Soraya Narfeldt, Chief Executive Officer, commented:

“2018 was a year of progress for the Group as we secured the additional funding required to achieve our strategic objectives and take our business to the next stage of growth. We are proud to have achieved a successful listing on AIM and look forward to creating value for our shareholders in the next phase of the business’s development.

“The progress delivered during the year was underpinned by our focus on diversifying our geographic presence, strengthening our customer base and broadening the mix of services we offer our clients. As a result, we have been awarded significant contracts during the period, and are now well positioned to take on larger bids.

The Board believes that the prospects for RA are as strong as ever and remains confident that the Group’s momentum will continue throughout 2019 and we look forward to another year of progress.”

Notes to summary table of financial results:

¹Comparative financial information has been restated following adoption of IFRS 15. ²Underlying profit represents profit before non-reoccurring exceptional items and unrealised FX charges. ³Normalised earning per share represents basic earnings per share excluding exceptional items and unrealised FX charges. 4Net cash represents the end of period cash balance less term loans and notes outstanding.