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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 £83.2 million from £55.0 million. On an adjusted basis, pretax profit rose 17% to £135.7 million from £116.4 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 £749.2 million from £694.5 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 £2.1 million in acquisition costs, in relation to the purchase of Dutch firm Liones Holding. This compares with £11.2 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 £773.5 million and £795.9 million for the year, and adjusted pretax profit between £126.4 million and £140.7 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
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