Soraya Narfeldt, CEO of RA International, commented:
“The Company is delivering on its strategy of geographical expansion and securing larger and longer term contracts. We have seen a significant increase in the bid pipeline since admission to trading on AIM in June, and we expect this to translate into contracts in the second half of this year and beyond.
“We are now focusing on larger contracts, and being a publicly quoted company will enhance our status and competitive position. We are grateful to the support shown by shareholders since June and look forward to the next phase of RA International’s development.”
RA International Group PLC (LON: RAI), a leading provider of services to remote locations in Africa and the Middle East, today announced its interim results in respect of the six months ended 30 June 2018.
· Admission to trading on AIM on 29 June 2018 raising gross proceeds of £18.8m (approximately US$24.7m)
· Half yearly revenue of US$ 23.9 m and EBITDA(1) of US$ 7.4m
· During the period, total contracts awarded of approximately US$ 33m including a 5-year contract with UNICEF providing, accommodation, catering, cleaning services and offices for their staff
· Net cash of US$ 28.0m at 30 June 2018
· Acquired RA SB Ltd., a provider of remote site services in Sudan, in line with strategy of further geographical expansion in Africa
· Commenced a US$ 5.2m construction and services project in Oman for the UK MOD. Besides supporting the Company’s geographical diversification efforts, the successful mobilisation of this contract demonstrates RA International’s ability to support UK Government agencies worldwide
(1) EBITDA is earnings before interest, tax, depreciation and the deduction of exceptional items detailed within the Condensed Consolidated Income Statement.
POST PERIOD HIGHLIGHTS
· Company now debt free with US$ 0.6m of term loans settled in H1 18 and remaining US$ 1.3m settled by 31 August 2018
· Contracted revenue backlog of US$ 114m at 31 August 2018 with US$ 63m of contracts awarded since 1 January 2018
· The average term of ongoing contracts is 2.2 years or 4.2 years when weighted by contract value
· Five-year contract of US$ 30m awarded by the United Nations Support Office in Somalia, in line with the Company’s focus on securing larger and longer-term contracts supporting key customers
· Regional project Management Office established and opened in Nairobi, Kenya, to provide technical project support leading to future project efficiencies around Africa