TIDMRAI
RNS Number : 6244I
RA International Group PLC
15 December 2020
This announcement contains inside information
RA INTERNATIONAL GROUP PLC
("RA International" or the "Company")
Trading Update
Appointment of NOMAD and Sole Broker
RA International Group PLC (AIM: RAI), a specialist provider of
complex and integrated remote site services to Humanitarian,
Governmental and Commercial organisations globally, provides an
update on current trading and announces it has appointed Canaccord
Genuity Limited as NOMAD and sole Broker to the Company with
immediate effect. Additionally, RA International management will
host an online investor update and Q&A session on Thursday, 17
December 2020 at 1pm GMT. Further details for this event and how to
register are set out below.
Trading Update
The Company expects to report revenue for the second half of
2020 of at least USD 28.0m and gross profit margin at least
consistent with the 29.1% reported for the first half of the year.
This reflects positive contract momentum during the period
supporting a growing order book into 2021. A breakdown in revenue
by service channel is set out below:
Integrated Facilities Management revenue for the second half is
expected to be broadly consistent with H1'20 where the Company
reported record IFM revenue for a six-month period of USD 15.9m.
IFM revenue constitutes the majority of the Company's order book
and continues to show resilience with minimal disruption despite
the global impact of COVID-19.
Construction revenue, as previously highlighted, has been the
area whereby COVID-19 has had the largest financial impact on the
business, primarily as a result of projects being suspended earlier
in the year. These suspended contracts have all subsequently
restarted and we continue to deliver this work, however, as
highlighted in September, the delays have led to a significant
deferral of revenue to 2021. We expect to report revenue for the
second half of 2020 of at least USD 7.0m, compared with first half
revenue of USD 10.7m.
Supply Chain Services revenue has held up well in the second
half of 2020. As previously highlighted, Supply Chain Services
revenue in H1'20 included USD 2.7m of contracts relating to the
provision of COVID-19 related PPE. We expect to report revenue for
the second half of 2020 of at least USD 5.0m, compared with first
half revenue of USD 6.1m, adjusted for the above-mentioned
benefit.
The current order book of USD 187m highlights the positive
contract momentum which has been a feature of 2020, particularly in
the second half of the year. In terms of recent new contract wins,
of particular note is a three-year IFM contract award in East
Africa with a value of USD 5.4m.
Soraya Narfeldt, CEO of RA International, commented: " We exit
2020 encouraged by our financial performance during the year, our
contract momentum and growing order book. Reported revenue for the
second half of 2020 will be lower than the first half, which we
expected in an environment where the COVID-19 pandemic has
continued to present varied challenges for us and our customers.
Looking ahead, we expect COVID-19 uncertainty to continue to
influence customer decision-making, and this may affect the timing
of commencement of new projects.
However, the risks associated with potential delays are
increasingly offset by our growing order book, providing a stronger
contractual baseline for the business year over year. This combined
with the nature of our bid activity gives us confidence in our
growth prospects going forward. We are growing with our customers,
with clients recognising our global reach, and we are bidding on
large, high value contracts, including a number of potentially
significant bids in the commercial sector, a key growth area for us
which is building real momentum."
Online Investor Presentation
RA International management will host an online investor update
and Q&A session on Thursday, 17 December 2020 at 1pm GMT.
Anyone wishing to participate should register with PI World
at:
https://bit.ly/RAI_Investor_update_webinar_piworld
A replay will be available subsequently on the Company
website.
Enquiries:
RA International Group PLC Via Bamburgh
Soraya Narfeldt, Chief Executive Officer Capital
Lars Narfeldt, Chief Operating Officer
Andrew Bolter, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser
and Broker)
Bobbie Hilliam +44 (0)207 523
Alex Aylen 8000
Bamburgh Capital Limited (Financial PR & +44 (0)191 249
Investor Relations) 7442
Murdo Montgomery investors@raints.com
About RA International
RA International is a leading provider of services to remote
locations in Africa and the Middle East. The Company offers its
services through three channels: construction, integrated
facilities management and supply chain, and services three main
client groups: humanitarian and aid agencies, governments and
commercial customers, predominantly in the oil and gas and mining
sectors. It has a strong customer base, largely comprising UN
agencies, western governments and global corporations.
The Company provides comprehensive, flexible, mission critical
support to its clients enabling them to focus on the delivery of
their respective businesses and services. Focusing on integrity and
values alongside making on-going investment in its people,
locations and operations has over time created a reliable and
trusted brand within its sector.
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