RWS Holdings PLC (LON:RWS), the language translation services provider, said it traded in line with expectations in the fiscal year just ended.
Group revenue for the year to the end of September is expected to be little changed from the previous year’s £356mln and within the range of analysts’ expectations.
Adjusted profit before tax is also expected to be in line with market expectations, despite the disruption caused by the coronavirus (COVID-19) pandemic.
In fact, as reported at the time of its interim results announcement in June, the group experienced increased demand for services within its Life Sciences and Moravia divisions, as its teams helped with the clinical trials for new COVID-19 vaccines, translated training material for COVID-19 related antibody testing devices and provided additional services to the group's technology customers.
This boost was offset by the continued impact of COVID-19 which has led to delays in customers coming on board with RWS’s Intellectual Property (IP) services division. In addition, some clients, particularly within the automotive and aerospace sectors, have required less translation work.
The group ended the financial year with net debt of around £15mln, versus net debt a year earlier of £37mln.
"The group has delivered a resilient performance, reflecting its diversified revenue streams across its three specialised divisions, with stronger levels of activity in Life Sciences and Moravia mitigating headwinds in IP Services,” said Andrew Brode, the chairman of RWS.
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"Whilst we are not reinstating financial guidance at this stage, due to ongoing market uncertainty, the group has a strong platform from which to continue to deliver resilient performance and to integrate the SDL acquisition effectively. The group's focus on Life Sciences and technology customers, who are thought to be likely beneficiaries in a post COVID-19 world, and the importance to our customers of managing their research and development investments through a strong global patent strategy, puts RWS in a strong position,” Brode claimed.