Trading Statement

RNS Number : 0264C

RWS Holdings PLC

13 October 2015

 

For immediate release                                                                                              13 October 2015

RWS Holdings plc

Year End Trading Statement

Revenue and profit expected to be ahead of market expectations

RWS Holdings plc (RWS), the world's leading provider of intellectual property support services (patent translations, international patent filing solutions and searches) and commercial translations, today provides an update on trading for the year ended 30 September 2015, ahead of the announcement of its final results, which is expected on 8 December 2015.

Trading & Financial Update

Following a flat sales performance in the first six months on a constant currency basis, with reported sales of £45.4m (H1 2014: £46.9m), RWS has enjoyed a significant recovery in the second six months with sales up almost 10% sequentially to £49.7m (H2 2014: £46.7m).  Sales for the full year of £95.1 million will, therefore, be above market expectations representing an increase of 2% over 2014 (£93.6m) or a 5% increase on a constant currency basis.

This performance reflects further organic growth across the Group with good results from the core patent translation activities, which benefitted from the conversion to sales of clients won in earlier periods, and a spike in patent applications arising from the 2011 America Invents Act; from growth in the subscriptions for the high margin PatBase database (+8%); and from a return to growth in inovia (+5%).  Adjusted profit before tax (before amortisation of intangibles and share option costs) is estimated to be approximately £22.5 million, again ahead of both market expectations and the prior year.

The RWS balance sheet shows further strength with shareholder funds in excess of £85 million and net cash of approximately £30 million.  The directors anticipate that this strong balance sheet will underpin the Group's acquisition strategy and its progressive dividend policy, with the final dividend payable to shareholders in February 2016.

Andrew Brode, Chairman commented on outlook:

"We are delighted by the Group's improved performance in the second half of the year, enabling us to report sales and profits ahead of expectations.

"We expect the current financial year to benefit from increasing sales from previous client wins, a healthy pipeline of new client opportunities and further benefits accruing from the full integration of inovia, which has now been completed.

"We are seeing an active pipeline of acquisition opportunities and therefore expect to use our strong balance sheet to good effect in the new financial year."

For further information contact:

RWS Holdings plc

Andrew Brode, Chairman                                                                                              01753 480200

MHP

Katie Hunt / Simon Hockridge                                                                                      020 3128 8100

Numis

Stuart Skinner / Kevin Cruickshank (Nominated Adviser)                                                020 7260 1000

James Serjeant (Corporate Broker)

 

About RWS:

RWS is the world's leading provider of patent translations and one of the leading players in the provision of intellectual property support services and high level technical, medical, commercial, legal and financial translation services.  Specialist divisions provide for the diverse needs of a blue-chip multinational client base from Europe, North America and Asia in the aerospace, automotive, chemical, defence, electronics, financial, insurance, legal, medical, pharmaceutical and telecommunications industries.  RWS is based in the UK, with offices in Europe, New York, Tokyo, Beijing and Sydney, 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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