RSK losses widen as acquisitions hit the half-century

RSK, set up by Alan Ryder in 1989, has now acquired 50 business in the past five years.

The latest to join the RSK Group are RSK Orbital, SkyVision International, The Scan Station and Smith & Kennedy Architects. These are the first acquisitions for RSK in the new financial year that started 5th April.

RSK has also filed its accounts for the year to 5^th April 2020, showing turnover up 34% to £280m and a pre-tax loss of £15.7m (2019: £9.6m). RSK has not made a pre-tax profit since 2016/17 when it started out on this acquisition trail with venture capital backing.

RSK Orbital is an aerial surveillance and photography business based in Cheshire in which RSK already had a stake since 2017. SkyVision International and The Scan Station are subsidiaries of RSK Orbital also in the aerial survey business. SkyVision specialises in monitoring pipelines from the air and was established 25 years ago in conjunction with Barr Air Patrol from Texas. Now fully integrated into the group, the three businesses will retain their existing leadership, workforce and brands, as they join RSK’s geosciences and engineering division under the direction of George Tuckwell.

RSK Orbital managing director Adam Gallacher said: “We already have an excellent relationship with RSK and are excited to build on our success, now that we are part of the group.”

Smith & Kennedy Architects is a 20-strong Dublin architectural practice, set up in the early 1960s. Managing director Joe Kennedy will continue to lead the business as it joins RSK’s European division under the direction of Nigel Board. Smith & Kennedy Architects will work closely with RSK Ireland, RSK’s existing Irish business, led by managing director David O’Hagan.

Alan Ryder, RSK founder and chief executive, said: “The four new businesses, though very different, each fit perfectly into our growing group, widening our offering so we can deliver the greatest value to our clients. With innovation at their core, RSK Orbital, SkyVision International and The Scan Station will be fantastic assets for RSK. Ireland is an important growth area for RSK, so I am also very pleased to welcome Smith & Kennedy Architects into the group.”

Based on its current trajectory and strategy, RSK reckons that by 2025 it will be delivering an annual turnover of £1bn and will employ 10,000 people around the world.  It is backed by £350m of debt finance from venture capital firm Ares Capital Europe.

Latest accounts show an operating profit of £2.9m (down from £5.8m the previous year) but interest repayments of £18.8m more than wiped that out. RSK ended the year with £240.8m of debt, up from £162.6m at the start of the year.

In mitigation, Alan Ryder said: “RSK has invested heavily in the business to create a solid platform for continued growth, incurring significant costs linked to establishing strong financial foundations. This is in line with our planned ongoing expansion by acquisition (through debt financing) together with organic growth.

“Our EBITDA grew by 32% to £26.6m from £20.1m in the previous year. We have a strong balance sheet with a robust cash and borrowing position. Cash generation was good and we closed the year with more cash in the bank than we have ever had before, £33.5m.

“I believe we have never been better placed and I am looking forward to taking the business forward in FY22 and completing further acquisitions as well as seeing significant organic growth in the business.”

RSK acquisitions since April 2016

1. ADAS
2. Dynamic Sampling
3. JB Site Investigations 
4.  Acies
5. KMGP
6. Ian Farmer Associates
7. Cole Jarman
8. Up & Under Group
9. CJ Associates
10. RSKW
11. Central Alliance
12. Non Destructive Testing Services
13. Copeland Wedge Associates
14. Twig
15. CAN
16. PB Drilling
17. BTS Group
18. the TBF Contracting businesses
19. Pellings
20. Dr Tillmanns & Partner
21. Headland Archaeology
22. Drilling Supplies & Hire Services
23. Consents Solutions
24. Biocensus
25. Adverbo
26. RAW Technology
27. Geocore Site Investigations
28. Ecologia Environmental Solutions
29. ATP
30. Silcock Leedham Group
31. Salix, Morrison Falklands
32. Nicholas O’Dwyer
33. Ground Heat
34. PA Group
35. RoC Consulting
36. WRc
37. Cognica
38. Boden & Wasser
39. Amphos 21
40. Pharos Generator Services
41. Pharos Field Engineering Services
42. Binnies (including Black & Veatch Limited, Black & Veatch Hong Kong Limited and Black & Veatch (SEA) Pte Limited in Singapore)
43. CAS
44. EDP
45. CR Civil Engineering
46. Enviresearch
47. RSK Orbital
48. SkyVision International
49. The Scan Station
50. Smith & Kennedy

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