RWS Holdings PLC (AIM:RWS) saw its shares drop 12% to 251.3p on Tuesday morning after the language translation specialist warned on profits.
Adjusted profit before tax for the year to end-September 2023 is expected to be at the lower end of market expectations, it said, reflecting a 6.8% decline in organic sales in the first half.
“Softer” activity levels and slower decision-making from some clients was blamed. Offsetting this was favourable currency movements and actions to reduce costs, though adjusted pre-tax profit for the first half is still expected to fall by 11% to roughly £54mln.
The “market context has become significantly more challenging in the last 12 months”, said RWS chief executive Ian El-Mokadem