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Business & education services

RWS Holdings looking for acquisitions as cash builds up

Pre-tax profits rose to £86.3mln (£57.4mln) with adjusted profits 17% higher

RWS Holdings (AIM:RWS) has said it will look for more acquisitions as the current market uncertainty shakes up the language and translation market.

The company saw its revenues for the full-year to September 2022 rise by 8% to £749mln though these were affected by the Ukraine invasion on its Russia-focused translation operation. Pre-tax profits rose to £86.3mln (2021: £57.4mln) with adjusted profits 17% higher,

In the results statement, Ian El-Mokadem, RWS chief executive, said: "Against a backdrop of wider global economic uncertainty, RWS has delivered robust, cash generative, profitable growth in line with market expectations, [and] continued its unbroken record of dividend growth.

“We believe that the current environment presents an opportunity for us to strengthen our leadership in our markets, as a well-funded business of unique scale, sector diversification, footprint and capabilities.

“In parallel, the group's strong cash generation and balance sheet mean that we retain the ability and appetite to make strategically compelling acquisitions.“

RWS upped its dividend by 12% to 11.75p and closed the year with net cash of £71.9mln.

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