RWS eyes further acquisitions as annual profit leaps

(Alliance News) - RWS Holdings PLC on Thursday reported a strong set of annual results, thanks in ...

Alliance News 15 December, 2022 | 11:21AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - RWS Holdings PLC on Thursday reported a strong set of annual results, thanks in large part to its successful integration of professional services firm SDL.

In the year ended September 30, the technology-enabled language services provider said pretax profit jumped 51% to GBP83.2 million from GBP55.0 million. On an adjusted basis, pretax profit rose 17% to GBP135.7 million from GBP116.4 million.

Shares in the Buckinghamshire, England-based firm were up 5.1% to 358.80 pence each.

This was on revenue that rose 8% year-on-year to GBP749.2 million from GBP694.5 million.

The increase was mostly due to an additional month's trading of SDL, a professional services firm that RWS purchased back in November 2020. It also reflects growth in Language Services, "accelerated growth" in Language and Content Technology, and foreign exchange tailwinds.

However, RWS noted "softness" in Regulated Industries and IP Services. Revenue fell by 6% in both segments.

Costs largely remained steady throughout the year. The firm recognised just GBP2.1 million in acquisition costs, in relation to the purchase of Dutch firm Liones Holding. This compares with GBP11.2 million a year before, related to the purchase of SDL.

RWS recommends a final dividend of 9.5p per share, which would bring the total to 11.75p - a 12% increase from the previous year.

Looking ahead, RWS said it is trading in line with market expectations for financial 2023. It cites consensus as revenue between GBP773.5 million and GBP795.9 million for the year, and adjusted pretax profit between GBP126.4 million and GBP140.7 million.

"We believe that the current environment presents an opportunity for us to strengthen our leadership in our markets, as a well-funded business of unique scale, sector diversification, footprint and capabilities," said Chief Executive Officer Ian El-Mokadem.

"In parallel, the group's strong cash generation and balance sheet means that we retain the ability and appetite to make strategically compelling acquisitions."

By Elizabeth Winter, Alliance News senior markets reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2022 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
RWS Holdings PLC 190.20 GBX 1.39 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures