RWS Holdings (AIM:RWS) tumbled 15% as it cautioned sales would be flat in the current twelve months marking two years of static revenues.
In a trading update, the language translation specialist said underlying second-half revenues improved by 2% to reverse a similar decline in the first six months and make the outcome for the year to September 30 flat.
Regulated Industries and Language & Content Technology led the recovery, said the statement, while AI-based products and services, TrainAI, Language Weaver and Evolve all made progress.
Both Language Services and IP Services also showed 'encouraging growth' said the statement.
Even so, RWS still expects to report annual revenues of £718m, 2% lower than the previous year due to adverse currency movements while adjusted profits will be within guidance but before currency movements, which will hit the total by £3 million.
For this year, 2024-25, RWS is forecasting 'modest organic revenue growth' at constant currency, with growth in volumes offsetting ongoing price pressure.
“We expect foreign exchange to continue to be a headwind to reported revenue and adjusted profits,” added the statement.
Net debt was £14 million at the end of September 2024, a £25 million improvement over the past six months helped by better cash collection.
Ian El-Mokadem, chief executive, said the market had been more challenging than expected but added that RWS had “driven significant improvements in performance” across the group in the second half.
Language Services and IP Services had returned to organic growth, on a constant currency basis, for the full year while "Our range of AI-centred solutions are gaining encouraging traction, with TrainAI and Language Weaver, in particular, seeing strong growth”.
The shares were changing hands for 135.38p, down 23.82p.