RWS Holdings (AIM:RWS) shares fell 13.5% to 88.88p after investors took profits despite the language technology group reporting stronger first-half growth and maintaining its full-year outlook.
The shares had risen about 21% since the start of the year before Thursday's results.
RWS reported revenue of £360.3 million for the six months to 31 March, up 5% from a year earlier, while adjusted profit before tax increased 33% to £24 million.
The company said organic constant currency revenue growth accelerated to around 7%, helped by an exceptional performance from its TrainAI business, which supports the development of artificial intelligence models. AI-related products and services accounted for 32% of group revenue, up from 26% a year ago.
Adjusted earnings per share rose 34% to 4.9p, while adjusted EBITDA increased 20% to £45.7 million.
The owner of translation platform Language Weaver said it had secured new clients across all three divisions, as well as recently acquiring AI-enabled intellectual property management business Obviously for £40 million.
Despite the strong headline growth, investors appeared unconvinced, with some elements in the results that may have added to this. The interim dividend was reduced to 1.75p from 2.45p following a rebasing of last year's final payout.
Management reiterated guidance for mid-single-digit organic revenue growth, improving profitability and strong cash generation for the full year, saying trading in the second half had started well and remained in line with expectations.
