REG - RA Intnl Group PLC - Trading Update

Ra InternationalAnnouncement

11/03/2024 08:45

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RNS Number : 3235G  RA International Group PLC  11 March 2024

11 March 2024

RA INTERNATIONAL GROUP PLC

("RA International", "RA" or the "Group")

Trading Update

Resumption of profitability and a positive net cash position

RA International Group PLC (AIM: RAI), a specialist provider of complex and
integrated remote site services to organisations globally, is pleased to
provide a trading update for the 12 months ended 31 December 2023 (the
"Period"). The Group expects to publish its full year results for the Period
in early May 2024.

2023 Financial Highlights (Unaudited, subject to confirmation through the 2023
audit)

During the Period, the Group achieved revenue of approximately USD 58.3m
(2022: USD 62.9m). Despite the reduction in revenue, the Group expects to
report a profit before tax of approximately USD 0.2m (2022: loss of USD
13.0m), making the Period the first profitable financial year since 2020.
EBITDA is expected to be approximately USD 6.3m (2022: loss of USD 4.1m).

Cash at the end of the Period was USD 16.8m (2022: USD 7.5m), with loan notes
of USD 15.8m (2022: USD 14.0m). This marks a return to net cash for the first
year since 2020.

A refinancing exercise was completed during the Period, extending the maturity
of a significant portion of existing notes as well as raising an additional
USD 1.8m. Of the USD 15.8m debt recorded at year end, USD 2.3m is to be repaid
in November 2024, with the remaining USD 13.5m due for repayment in January
2027.

Operational / Financial Highlights

During the Period, RA's primary objective has been to implement a strategic
approach that would promote stability and recovery from the many challenges
that the Group has faced in recent years which have negatively impacted profit
margins. The Group's focus has been directed towards enhancing operational
efficiencies over long term contracts, re-evaluating and renegotiating
material costs that were adversely affected by inflation, while actively
pursuing measures to minimise delays on contract implementation. This combined
with successful renegotiations with shipping companies and enhanced last-mile
logistics performance, positions the Group well to identify sustained market
growth opportunities in the future, underscoring its commitment to long-term
success.

The recent restructuring of the RA Federal Services (RA FS) board, with Mr
David Dacquino appointed as Chair, has led to a significant improvement in
that company's performance, resulting in accelerated growth. The strategic
changes made at the board level have effectively positioned RA FS for success,
as evidenced by the recent awards of strategically important contracts in
Suriname and Thailand with the US Government. This notable achievement not
only demonstrates the strategic expertise of the board, but also showcases
their ability to propel the company towards new levels of success and
increased market share. The Group has also made significant progress in
recovering value from the cancelled Palma Project, with USD 5.2m net
income realised in H2 2023. USD 3.5m of net cash inflows relating to these
profits were received in 2023, with the remaining balance of USD
1.7m being received in January 2024.  The sale of the impaired assets not
only provides significant cash inflows, together with adding to the Company's
net income, but also removes the cost of storage going forward and opens up
opportunities with new clients for additional work.

Outlook for 2024

·    The core focus is to continue to build on the improvements made in
2023. To this effect, the Group is committed to increasing revenue and
improving margins across all service sectors through an enhanced strategic
focus on cost reduction and efficient overhead management.

·    Our 2024 strategy is also focused on country diversification through
new project implementation in Suriname, Thailand and the Maldives. With new RA
FS projects delivering construction and refurbishment work, we will pursue
further IFM work within these locations through the upselling of further
services.

·    Although financial prosperity is a key deliverable, we will not lose
sight of our social impact and environmental vision of developing and offering
ESG solutions to clients as part of our offering.

·    Through the successful sale of assets, we have made significant
advancements within the commercial mining and minerals sector, expanding our
reach to new customers and territories. By effectively upselling our expertise
to potential clients, we aim to increase revenue and solidify our presence in
the marketplace during 2024.

·    The appointment of Mr. Roberto Bruni as Chief Commercial Officer
effective 1st of March 2024 marks a significant enhancement to our
organization's strategic outlook for the coming year. With his expertise, we
are poised to bolster our ability to cultivate a qualified pipeline,
ultimately driving an enhanced conversion ratio and elevating our customer
relationship management practices.

Soraya Narfeldt, CEO of RA International, commented:

"The Group's focus on stability and cash has delivered a strong and profitable
result. The commitment by my colleagues, Board and shareholders has enabled
the Group to regain its footing with a return to profitability and stability.
We remain committed to delivering immediate results and lasting change giving
customers the confidence that we are a company they can rely on who can do the
job well and provide the right kind of support."

 

The information communicated in this announcement is deemed by the Group to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended.

Enquiries:

 RA International Group plc                                            Via Strand Hanson

 Sangita Shah, Chair

 Soraya Narfeldt, Chief Executive Officer

 Strand Hanson Limited (Nominated & Financial Adviser and Broker)      +44 (0) 20 7409 3494

 Ritchie Balmer / James Spinney / David Asquith

About RA International

RA International is a leading provider of services to remote locations. The
Group offers its services through three channels: construction, integrated
facilities management and supply chain, and services two main client groups:
humanitarian and aid agencies and western government organisations focusing on
overseas projects. It has a strong customer base, largely comprising UN
agencies, UK and US government departments and global corporations.

 

The Group 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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