RA International Group PLC Trading Update (7929B)
February 16 2022 - 2:00AM
UK Regulatory
TIDMRAI
RNS Number : 7929B
RA International Group PLC
16 February 2022
This announcement contains inside information
RA INTERNATIONAL GROUP PLC
("RA International", the "Group" or the "Company")
Pre-Close Trading Update
RA International Group PLC (AIM: RAI), a specialist provider of
complex and integrated remote site services to Humanitarian,
Governmental and Commercial organisations globally, provides a
pre-close trading update for the 12-month period to 31 December
2021.
The Company expects to report revenue for the year to December
2021 of approximately USD 54m and an Underlying EBITDA of
approximately USD 7m. While revenue is in line with management
expectations, reduced revenue in comparison with the prior year
impacted gross margin. Gross margin in the period was also impacted
by the general inefficiencies of operating under COVID-19,
including travel restrictions, quarantine requirements and supply
chain delays. G&A costs increased by USD 2m in the year,
reflecting the full year impact of investment undertaken in 2020 to
support anticipated growth.
The Company order book as at 31 December 2021 was USD 100m,
reflecting revenue drawdown in the period and ongoing delays
connected to new contract wins and tenders. These projects remain
in the pipeline, and we remain confident of awards, however
timelines are beyond our control.
The Group closed the year with cash on the balance sheet of USD
9m, resulting in a modest net debt position of USD 1m. This
reflects an additional USD 4m tranche of debt raised under the
Medium-Term Note programme and elevated levels of
Mozambique-related inventory which have not yet unwound due to
delays in commencing alternative projects.
Soraya Narfeldt, CEO of RA International, commented :
"This has been a frustrating period, with client and COVID-19
related operating constraints continuing to cause inefficiencies
and exceptional delays in executing projects, in tender issues,
awards and in project mobilisations. This has impacted our
profitability for the last six months of 2021 and also stalled our
order book momentum. However, the underlying business has remained
profitable through this disruption and our solid balance sheet
supports our forward looking requirements.
As a management team we are not going to react passively waiting
for these headwinds to abate. We have reflected on our strong track
record supporting blue-chip customers in the Humanitarian and
Government sectors relative to the emerging opportunity we have in
the Commercial sector. Over the last two years or so, through the
pandemic and other events, we have seen particular risks and delays
with new business activity in the Commercial sector. As a result,
going forward, we will be more selective in the projects we look to
undertake in this sector, and it will be less of a focus of our
business development activities.
Our confidence in our core business supporting our Humanitarian
and Government clients remains high. We are particularly encouraged
about the opportunity we have in the Government space, where we are
building a specialist capability with respect to supporting US
government activity overseas, including with our partner Cherokee
Nation. We are also looking to prioritise work with UK government
departments including the MoD and the FCDO as well as other
international government agencies. Overall, we expect Government
clients to become an increasingly important part of our business
over time, decreasing the risk profile of our clients and
diversifying geographically into markets to mitigate operational
risks. We will align our resources with these high quality clients
alongside our continued focus on securing high quality IFM
contracts.
We will update shareholders more fully with respect to our
strategic focus and outlook when we report our 2021 audited
results, which we expect to announce in late April 2022."
Enquiries:
RA International Group PLC Via Bamburgh Capital
Soraya Narfeldt, Chief Executive Officer
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. 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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