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Bettesworth Construction
acquisitions

RSK Acquisitions Boost Turnover, but Finance Costs Weigh on FY26 Results

RSK’s FY26 revenue grew 10.3% to £2.47bn, but £112m in reported interest and similar expenses contributed to a £93m pre-tax loss.

By Bettesworth Construction Team 3 min read
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RSK Group reported FY26 revenue of £2.47 billion, up 10.3%, after a year of organic growth and acquisitions. Operating profit rose to £18.1 million, but Construction Enquirer reported £112 million in interest and similar expenses and a £93 million loss before tax. The figures show why higher turnover and operating profit did not translate into a pre-tax profit.

What did RSK report for FY26?

RSK’s financial year ran from 7 April 2025 to 5 April 2026. In its 5 October 2026 announcement, the group reported revenue of £2.47 billion, a 10.3% increase year over year. Net fee income—a separate measure, not another name for revenue—rose 20.2% to £1.33 billion. RSK’s results announcement describes the performance as reflecting both organic growth and acquired contributions.

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Measure FY26 result Year-over-year change
Revenue £2.47 billion +10.3%
Net fee income £1.33 billion +20.2%
EBITDA £152.1 million +24.2%
Adjusted EBITDA £225.7 million +32.1%
Operating profit £18.1 million Not stated in the cited announcement
Cash generated from operations £117.2 million Not stated in the cited announcement

These measures describe different parts of the business. Revenue is the reported sales measure; net fee income is distinct. EBITDA and adjusted EBITDA are also separate figures, and should not be treated as interchangeable. Cash generated from operations measures cash generation, not profit.

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How much did acquisitions add to turnover?

RSK said it completed ten strategic acquisitions in FY26 and invested more than £172 million to expand its capabilities and geographic reach. It also credited organic growth. The announcement does not quantify how much of the 10.3% revenue increase came from acquisitions, so the full rise should not be attributed to deal activity.

The company describes itself as a global environmental and engineering group. At year-end, it comprised more than 200 businesses, operated in over 40 countries and employed more than 17,000 people. Water was its largest sector, generating £982.5 million of revenue, according to the company announcement.

Why was RSK still loss-making before tax?

Operating profit and pre-tax profit are different measures. Operating profit reflects profit from operations before financing expenses and other items below that line. Construction Enquirer reported that RSK had £112 million of interest and similar expenses in FY26—substantially more than the £18.1 million operating profit reported by RSK—and recorded a £93 million pre-tax loss. The trade publication said the financing expense outweighed trading profit. Construction Enquirer’s report also put the prior-year pre-tax loss at £125 million, so the reported loss narrowed.

The same report put net debt at £965 million, compared with £734 million previously. RSK separately reported £117.2 million in cash generated from operations. Cash generation and net debt can move differently: cash generated over a period is not the same as the year-end debt balance, and the figures alone do not establish what caused the increase in net debt.

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The available figures do not state loan maturity dates, covenant headroom, borrowing rates or the components of the £112 million expense. They do not, by themselves, establish a near-term solvency or refinancing outlook.

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What is RSK changing, and what are its FY27 priorities?

RSK said it reduced its trading divisions from nine to six. The revised structure is intended to support collaboration and cross-selling while preserving operational autonomy in individual businesses. The company’s announcement sets out these priorities for FY27:

  • Deliver above-market organic growth.
  • Improve margins and cash conversion.
  • Make acquisitions in a disciplined way.
  • Gain more benefit from the group’s scale.

These are stated priorities, not guaranteed outcomes. CFO Andrew Markwick said FY26 growth was driven by “solid organic growth and continued execution of strategic acquisitions,” and that operational discipline and commercial focus led to improved margins. CEO Alan Ryder described the year as one of progress, pointing to growth, cashflow and investment in capabilities, systems and technologies. Both statements appeared in RSK’s 5 October 2026 announcement.

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