RWS predicts record year as language service sales surge
RWS Holdings unveiled a surge in full-year revenues and profits on Tuesday, and said it was on track to deliver another record year, following the “transformational” acquisition of Czech translation service Moravia.
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AIM-listed RWS, which provides intellectual property and language services, said revenues for the year to 30 September were £306m, an 87% hike on last year, while reported pre-tax profits were ahead 17% at £39.7m.
Net debt expanded by 222% to £65.1m.
Looking ahead, RWS said it was made “a very good start” to the current year, “with a strong performance in the first two months underscoring our expectations of delivering another record year”.
RWS called the acquisition of Moravia, which completed in November 2017, “transformational”.
“The Moravia team delivered a very strong second half and we look forward to further growth from this business,” said Andrew Brode, RWS chairman. “The group is now one of the world’s leading providers of language services, with a strong platform for taking advantage of the multiple opportunities afforded by our enhanced service offering, extended a global presence and growing markets.”
He also hinted at further deals, noting that RWS was “well positioned” to take advantage of further acquisitions opportunities “as they arise”.
Analysts at Berenberg, which has a ‘buy’ recommendation on the stock, said: “RWS has a clear strategy to achieve international growth organically and via acquisitions, and then to cross-sell its services,” adding that it believed Moravia “will significantly improve the scale and service offering of the combined group”.
Shares in RWS, which listed on AIM in 2001 as Health Media, became RWS in 2003 and hit an all-time high in September this year, rose more than 4% in afternoon trading to 490.5p.