RSK on path to becoming ‘world’s largest provider of sustainable solutions’

Cheshire sustainable solutions group, RSK, has reported another year of growth.

The Helsby-based group revealed that, for the year to March 31, 2024 total revenue increased to £1.9bn, compared with £1.2bn in the previous year.

Growth was driven by a combination of organic growth and acquisitions.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to £119.5m, up 79% compared with the previous year’s £66.8m figure.

However, pre-tax losses increased from £86,896 in 2023 to £132,009.

Cash generated from operations was strong, increasing to £95.4m compared with £43.7m the previous year.

The group completed 25 acquisitions during the year, strengthening its offering across multiple key sectors, including water, energy, infrastructure and the built and natural environment.

Given the number of acquisitions completed during the year, RSK also reports pro forma figures to demonstrate the true shape of the combined group.

Pro forma last 12 months (LTM) figures are calculated to show the impact assuming all acquired entities had been in the group for the full financial year.

On a pro forma basis, RSK delivered LTM revenue of £2bn (2023: £1.4bn) and LTM EBITDA of £163m (2023: £116.4m) at the end of the financial year.

RSK founder and Chief Executive, Alan Ryder, said: “RSK is a well established global provider of sustainable solutions. We recognise the urgent need for sustainable change and know that this will be achieved through action, not just words.

“We are committed to supporting our clients and societies in navigating these complex challenges while delivering positive impact.”

He added: “Collaboration across disciplines is key in achieving a brighter future. This is why we have brought together pragmatic advice, forward-thinking engineering, cutting-edge innovation, digital solutions and best-in-class delivery services.

“RSK will continue to invest in highly specialised environmental, engineering and design consulting, testing, inspection, certification and compliance (TICC) and environmental solution businesses in our target geographies.

“This approach has led to consistent growth over many years, and we are forecasting this to continue as we capitalise on the strong market conditions and drive revenue synergies across the group.”

In its strategic report, RSK expressed confidence in the market outlook, highlighting the group’s current exposure to attractive end-markets including water, energy, infrastructure and the built and natural environment. Increasing market opportunity, driven by environmental, social and governance regulation and stakeholder pressure for companies and governments to act on the United Nations Sustainable Development Goals continues to positively impact RSK.

With its addressable markets set to continue growing and RSK’s large group of companies focused on driving revenue synergies through cross-selling, the group is well placed for continued success.

Based on the market conditions, RSK’s track record and its current market position, Alan emphasises RSK’s long-term vision: “By doing the right thing and ensuring RSK is a business that people want to be part of, we believe we can become the world’s largest and most trusted provider of sustainable solutions.”

RSK also notes that a strategic investment agreement was completed in September 2024, and is, therefore, not reflected in FY24 financial statements. To deliver its 2030 Global Growth Strategy, which includes organic growth initiatives and the continued execution of the company’s acquisition strategy, the group recognised a need to raise capital and strengthen its balance sheet.

RSK was pleased to secure a £520m preferred equity investment, with £500m from a consortium led by Searchlight Capital Partners, Ares Management funds and Penta Capital and a further £20m from Business Growth Fund.

In addition, Ares, the current provider of senior debt facilities to the group, committed an additional incremental £300m debt facility, bringing the total available debt facilities provided by Ares to £1.4bn.

With committed investors sharing RSK’s vision for the future, this investment provides the capital required to fuel the group’s next stage of growth while also strengthening the balance sheet for the future.

RSK said it continues to embed sustainability at the core of its operations.

In December 2023, it launched a new sustainability strategy, Second Nature, which will guide its sustainability journey to 2030.

Second Nature is built around five core themes of people, value chain, society and the environment, with finance and governance sitting at the heart of Second Nature as the foundation on which RSK will deliver on all other commitments, it said.