Trading Statement

RNS Number : 9281J

RWS Holdings PLC

09 April 2010

 



                                                                                                                                     9 April 2010

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 2010 ahead of the announcement of its interim results on 2 June 2010.

RWS has continued to focus on organic growth in its high quality translations and IP support services activities.  Market leadership, especially in patent translations, has provided a resilient base for expansion underpinned by a number of significant client wins. Our technical translations teams, especially in Germany, have experienced severe trading conditions.  The information division's patent database subscription service - PatBase - has continued to build upon its success in 2009.

RWS remains committed to its strategy of complementing organic growth via deployment of the Group's substantial cash resources for selective acquisitions.  Whilst the flow of potential deals has been acceptable, vendors' price expectations remain unattractive in the current economic climate.

RWS expects to exchange contracts in April in respect of the purchase of its new headquarters.  Occupation is expected in late Summer after an extensive fit-out exercise.  The total net capital outlay will be of the order of £12.5 million, and the purchase will enable the consolidation of four separate locations into single premises, with cash savings and improved operational efficiencies.

Revenue for the six months ended 31 March is in line with management expectations.  Profits have been impacted by the reduced volatility in currency markets when compared with last year when the Euro was exceptionally strong.  Additionally, interest income in the first half of the year  will be markedly lower than in the  prior year as a result of the current low interest environment.  RWS has hedged its US$ exposure at $1.65 per £ until September 2010; its Euro exposure has been hedged at rates between 87 pence and 91 pence per Euro until 31 December 2010.

The Board expects that revenues and profits for the year ended 30 September 2010, given present currency levels, will be in line with market expectations.  The Group enjoys a strong financial position with shareholder funds in excess of £49 million and net cash of £24 million as at 31 March.  The progressive dividend policy is expected to continue.

Andrew Brode, Executive Chairman, commented:

"RWS is performing well, particularly in its core business.  This is commendable given the lingering recessionary conditions which have impacted many important clients.  Provided sterling remains at current levels, we expect to meet market expectations for the full year."

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For further information, please contact:

RWS Holdings plc

Andrew Brode, Executive Chairman                                                                        Tel: [phone]

Smithfield

Debbie Potts / 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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