total rent paid in 2007 was £5.7m.

Growth and Funding
RPS operates in markets which are generally attractive and expanding with good long-term prospects, but fast changing.We need, therefore, to keep our products and services and how we market and deliver them under continuous review.The Board believes that the long-term health and growth of the Group will be best secured by ensuring that RPS is, and is perceived by clients and staff to be, a market leader in each of our business areas. Our corporate strategy is designed to achieve this.

Our financial growth objectives focus on profit rather than revenue. Whilst it is tempting to remain in products and markets where margins are falling in order to maintain revenue, we do not adopt this approach. Instead we endeavour to find ways of delivering service in more attractive ways to clients or if this is not possible scale back or end our involvement in unattractive markets and develop and invest in new, more attractive, areas.

The Board is committed to achieving year on year profit and earnings growth for the Group, but does not set specific targets for this.We are endeavouring to deliver long-term shareholder value and have, therefore, to balance annual earnings growth with investment in both our existing clients, staff and products and the development of our product offering and capability.

The acquisition strategy RPS has pursued

over the last decade has brought considerable benefit to shareholders, clients and staff.The companies acquired have enabled us to build strong positions in a number of markets and, for example, to create a new business in the energy sector. This, in turn, enables us to offer a broader, higher quality service to our clients and attractive employment to staff and potential recruits.The financial performance of the companies which have been acquired has increased the Group’s growth.The Board sees the maintenance of this element of the strategy as being of importance to the continued growth of RPS and is prepared to consider more significant acquisitions, as well as making acquisitions outside the countries in which we currently operate. At the year end the Group had net borrowings of £32.6 million (Note 26). RPS normally generates sufficient free cash to fund its working capital and capital expenditure requirements. Additional cash resources are, therefore, only needed in order to pursue the Group’s acquisition strategy. From time to time, the Board therefore secures funds by means of arranging debt finance or equity placings.

The Board believes the Group’s current bank facilities, which have recently been increased to £100 million, will enable it to maintain its strategy throughout 2008, although it is possible that a larger acquisition could necessitate additional debt or equity finance.

Dividend Policy
For a number of years our dividend has

grown at an average annual compound rate of about 15%. Our ability to maintain this level of growth will depend upon both the scale of earnings growth as well as the nature and scale of future acquisitions and how that investment is funded.The final dividend will normally be greater than the interim payment. Dividends paid and proposed are detailed on page 62.

Shareholder Value
The Board manages the Group in order to achieve good levels of growth in shareholder value on a consistent longterm basis.The Board, however, recognises that this can only be achieved by providing a competitive service which adds value to our clients’ organisations and offering an attractive working environment and career prospects to our staff. Striking this balance whilst also respecting our responsibility to society at large, is the main task facing the Board.

That the Group has continued to grow over such a long period confirms we are operating in an attractive sector and implementing a good strategy successfully.

Corporate Governance
RPS has had a strong system of governance in place throughout its corporate life. In recent years we have formalised this in response to the various codes and guidelines that have emerged. The various policies relevant to this are set out fully on pages 48 to 59.The Board believes that its long-term shareholders understand that RPS operates the highest governance standards.