Acquisition-hungry consultancy and construction services group RSK reported deeper pre-tax losses of £132m for the year ending March 2024, compared to a loss of £90m in the previous year.

Despite this RSK’s debt-fuelled expansion drove a 52% increase in revenue, reaching £1.9bn.

Before interest payments on loans totalling £143m, the group returned a small operating profit of £8m improved from a £14m loss in 2023.

Cash generated from operations increased to £95m. This was supported by an increase in borrowings of £284m to fund acquisition projects, which pushed net debt just above £1bn (2023 restated: £739m).

Following the close of the financial year, RSK secured a £500m funding injection from a consortium led by investors Searchlight, Ares and Penta Capital.

Also Ares committed an additional £300m debt facility, bringing total available debt facilities provided by Ares to £1.1bn.

Founder and chief executive Alan Ryder said: “The next financial year will be another year of very significant growth.

“High levels of organic growth will be achieved as we capitalise on the strong market conditions and drive revenue synergies across the group.

“Alongside this, RSK will continue to execute its acquisition strategy, bringing specialised businesses into the Group to further develop our end-to-end sustainable solutions offering in the core markets of water, energy, infrastructure and the built and natural environment.

RSK anticipates that, through both organic and inorganic growth, it will employ over 40,000 individuals and generate revenue exceeding £5bn, with EBITDA projected to surpass £500m by the end of the decade.

Founded in 1989, RSK’s portfolio consists of a diverse array of firms that provide tailored environmental consulting and engineering solutions across the water, energy, construction, and infrastructure sectors.