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RWS Holdings expects record full year performance after strong first half

RWS said it remains "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"

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"We have had an excellent first half," said chairman Andrew Brode

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."

Quick facts: RWS Holdings

Price: 665 GBX

AIM:RWS
Market: AIM
Market Cap: £1.83 billion
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