Turnover rose 30%, from £36.2m to £47.2m.

Dr Alan Hearne, chief executive, said that despite the downturn in the economy and some slowdown in commercial property, RPS?s clients had continued to seek planning permission for developments.

''What we are doing is at the front end of the pipeline. People tend to carry on getting the permission to develop land because you don?t know when the window of opportunity will close. The commercial property market will have to get a lot worse than it is now for that to change,'' he said.

Mr Hearne added that RPS also carried out work for the public sector, which was a large holder of land.

RPS also benefited from acquisitions. It has spent up to £43.6m - £39.1m in cash and £4.5m in new RPS shares - acquiring eight companies since the group raised a £40m war-chest in April 2001. Of the cash amounts, £17m is deferred consideration.

Gary Young, finance director, said that of the 31 per cent increase in first half operating profits before goodwill amortisation, from £5.95m to £7.8m, 16 percentage points related to acquired companies, with the remainder coming from organic growth.

Mr Hearne said RPS?s markets were fragmented and there was room for further acquisitions, particularly in the Dutch market, and in its planning, nuclear business and water businesses.

Mr Young said that, at June 30, RPS had cash of £22.9m plus an £8m acquisition facility - as yet unused.

An interim dividend of 0.76p (0.66p) is payable from earnings per share of 2.52p (2.17p).

Comment

 *  Spending on environmental issues is no longer discretionary. This, combined with demand for infrastructure, and continued complexity in the planning process, should help RPS offset any further slowdown in the economy, and put it in good stead for a recovery. Richard Rae, at ABN Amro, forecasts full-year profits before goodwill amortisation and exceptional items of £17.8m. The shares have fallen from more than 150p a year ago to yesterday?s 118p, putting RPS on a forward p/e of 16.5. Existing investors who bought for the long term should not bail out now, but the rating looks a bit expensive for potential shareholders.

Financial Times