RSK smashes £1bn turnover barrier, but interest costs lead to deeper losses
Cheshire sustainable solutions group, RSK, has smashed the £1bn turnover barrier, but suffered an increase in pre-tax losses, its latest figures show.
Based in Helsby, RSK comprises more than 200 companies around the world.
During its 2023 fiscal year, it saw revenues soar from £796m to £1.2bn, reflecting its highly-acquisitive operating model – in the reporting period it added 34 new businesses to its portfolio.
However, it also saw its pre-tax losses increase from £42.7m to £8o.6m, largely as a result of interest costs.
EBITDA improved from £59.4m to £83.4m in 2022, while cash generated from operations increased to £75.4m, from £31.9m.
RSK finished 2023 with £103.6m of cash in the bank.
Founder and chief executive, Alan Ryder, said: “As we reflect on the reporting period, I am immensely proud of all that we have achieved.
“RSK has become a global leader in the delivery of sustainable solutions, and as we continue to grow, we will further strengthen this position, working with our clients to tackle some of the most pressing global issues.
“Last year, we shared our 2030 global growth strategy to showcase how we would transform the business into a global sustainability leader delivering over £5bn revenue annually, and we haven’t wasted any time progressing this plan and delivering on our strategic aims.
“We have successfully capitalised on strong market tailwinds, achieving high levels of top line organic growth linked to our existing businesses.
“With the ongoing support of Ares, our senior debt partner, we have continued to deploy our committed financing facilities, surpassing our inorganic growth targets (new acquisitions) for the year. Crucially, we have remained focused on our people, our clients and the planet.”
He added: “We have continued to invest heavily in the business and, as a result, recorded a pre-tax loss of £80.6m for the period, which was expected and in line with our business plan.
“As the board is focused on the long term success of the group, rather than short term gains, we’re satisfied with these results. When you build a business with a significant amount of debt, then – as a result of interest costs – you should not be surprised to see such an outcome.
“A key factor of business stability in a growing organisation is the strength of our balance sheet and cash position – we have plenty of cash in the bank, and maintain positive bank balances in the order of £100m at all times – so while we are a fast growing business, we are also a strong, healthy and resilient one.”
RSK Group chief financial officer, Abigail Draper, said: “While there has been some degree of uncertainty in the global economy, RSK is well placed to weather the impact of recession through the diversity of its service lines and the countries in which it operates. We continue to review the market sectors in which we operate and are satisfied that we are aligned with those sectors least likely to be impacted by global economic downturn.”
