RWS Holdings PLC (LON:RWS) said it expects another record year after a robust first half, driven by a strong performance at its Moravia translation services unit and life sciences business.
Adjusted pre-tax profit in the first half ended March 31, is expected to be at least £35.5mln, a 24% increase on the previous year, on record revenue of £172.3mln, up 23% on a year ago or 10% on a like-for-like basis.
Moravia – the Czech translation service provider it acquired in November 2017 – revenue gained 10% on a like-for-like basis and margins improved on the back of higher demand for localisation services from technology clients, favourable exchange rates and overhead cost reduction.
READ: RWS jumps following final dividend hike as Moravia acquisition boosts earnings
Life sciences like-for-like revenue increased 6%, led by growth in the specialist linguistic validation offering.
The intellectual property services division delivered a 14% like-for-like gain in revenue, supported by growth in European patent filing.
Net debt reduced to £63.9mln at the end of March from £82.8mln last September on strong cash generation after the US$6mln acquisition of Alpha Translations Canada Inc. in January and a final dividend payment of £16.4mln.
"We have had an excellent first half with double-digit underlying revenue growth from our two largest divisions,” said chairman Andrew Brode.
He added: "We remain focused on organic growth and the excellent cross-selling opportunities that are on offer through our enhanced service offering, while continuing to review selective potential acquisitions.
"Following a strong first half, we are confident of achieving another record year."