Trading Statement

RNS Number : 5614Q

RWS Holdings PLC

15 April 2009

 



                                                                                                                                                   15 April 2009

RWS Holdings plc

Trading Update

RWS Holdings plc ('RWS' or 'the Company'), Europe's leading provider of intellectual property support services (patent translations and technical searches) and technical translations, today provides an update on trading for the six months ending 31 March 2009 ahead of the announcement of its interim results on 2 June 2009.

RWS has continued to focus on high quality translations and other IP related activities where it profits from its acknowledged market leadership. The core translations business has made further good progress, whilst the information division's high-margin patent database subscription service - PatBase - goes from strength to strength.

In line with RWS's stated strategy to complement organic growth by deploying the Group's substantial cash resources for selective acquisitions, we announced, on 4 March, the acquisition of CommuniCare Limited, a London-based provider of high quality translations for the medical and pharmaceutical industries and life sciences companies. We are confident at this early stage that this acquisition will be earnings enhancing in the current financial year.

As announced on 20 February, HMRC has agreed the Group's tax return for 2004, and in particular a claim for capital losses. The release of a £4.4 million tax provision will be taken through the profit and loss account and result in an exceptional increase in earnings per share for 2009.

Both revenue and profit for the six months ended 31 March benefited from a strong euro and are expected to be ahead of management's expectations. The highly favourable currency trends will result in profit before tax being significantly ahead of expectations and the prior year.

The Group enjoys a strong financial position with shareholder funds in excess of £43 million and net cash of £24 million. We continue to actively seek further selective acquisitions capable of enhancing shareholder value, especially given the poor return currently available on cash deposits.

Andrew Brode, Executive Chairman, commented:

' RWS has performed well in the half year. This is despite challenging recessionary conditions which have impacted a number of our clients, and having absorbed the full impact of the London Agreement. If sterling remains relatively weak, we expect to exceed our revenue and profit expectations for the full year.'

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For further information, please contact:

RWS Holdings plc

Andrew Brode, Executive Chairman                                                       Tel: [phone]

Smithfield

Reg Hoare / Rebecca Whitehead                                                           Tel: [phone]

Numis Securities Limited as Nominated Adviser

Stuart Skinner                                                                                           Tel: [phone]

Numis Securities Limited as Broker

James Serjeant                                                                                         Tel: [phone]

About RWS:

RWS is Europe's leading provider of intellectual property support services (patent translations and technical searches) to the medical, pharmaceutical, chemical, aerospace, defence, automotive and telecoms industries. RWS is based in the UK with offices in Europe, New York, Tokyo and Beijing and is listed on AIM, the London Stock Exchange regulated market (RWS.L).

For further information please visit: www.rws.com

 

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