Year End Trading Statement & Notice of Results

RNS Number : 1882Q

RWS Holdings PLC

26 October 2021

 

For immediate release  26 October 2021

 RWS Holdings plc

Year End Trading Statement & Notice of Results

A strong performance with profit ahead of expectations

RWS Holdings plc ("RWS", "the Group"), the world's leading provider of technology-enabled language, content management and intellectual property support services, today provides an update on trading for the year ended 30 September 2021, ahead of the announcement of its full year results.

Adjusted profit before tax¹ for the year is expected to be ahead of market consensus², with revenue within the range of market expectations² . This performance reflects a stronger than expected margin driven by both an improved margin mix and the early stages of operational efficiencies from the integration of SDL into the Group.

The Group remains highly cash generative, resulting in a movement from net debt (excluding lease liabilities) of £15.1 million as at 30 September 2020 to net cash of c.£45 million as at 30 September 2021, after acquisition costs and the costs of delivering synergies following the acquisition of SDL.  Net debt, including lease liabilities, is expected to be c.£3 million.

Notice of Full Year Results

RWS will provide a further update with its full year results on 14 December 2021. To register your interest in attending the results presentation, please email [e-mail] .

Ian El-Mokadem, Chief Executive Officer of RWS, commented:

"The Group has delivered strong results, with a robust revenue performance combined with a stronger than anticipated margin, following the acquisition of SDL.  

"Following a good few months in the business, it is clear to me that I have joined RWS in a strong position, with an excellent team in place to drive the business forward and build on its leadership of its growing, fragmented markets, alongside a healthy cash position to support the Group's strategy.

"We look forward to providing an update, in a capital markets day in the first quarter of next year, on our plans to continue to build upon the Group's strong position and track record."

¹       Adjusted profit before tax is stated before amortization of acquired intangibles, acquisition costs, share-based payment expenses, net gain/loss on debt modification and exceptional items.

²   The latest company-compiled view of analysts' expectations for the year ended 30 September 2021 gives a range of £694.0m-£711.3m for revenue, with a consensus of £699.7m, and a range of £109.8m-£113.2m for adjusted profit before tax, with a consensus of £111.6m.

RWS Holdings plc Andrew Brode, Chairman Ian El-Mokadem, Chief Executive Officer Des Glass, Chief Financial Officer

01753 480200

MHP (Financial PR advisor) Katie Hunt / Simon Hockridge

[e-mail]       020 3128 8100

Numis (Nomad & Joint Broker) Stuart Skinner / Kevin Cruickshank / Will Baunton Berenberg (Joint Broker) Ben Wright / Toby Flaux / Alix Mecklenburg-Solodkoff

020 7260 1000      020 3207 7800

About RWS

RWS Holdings plc is the world's leading provider of technology-enabled language, content management and intellectual property services. We help our customers to connect with and bring new ideas to people globally, by communicating business critical content at scale and enabling the protection and realization of their innovations.

Our vision is to help organizations interact effectively with people anywhere in the world, by solving their language, content and market access challenges through our collective global intelligence, deep expertise and smart technology.

Customers include 90 of the globe's top 100 brands, the top 10 pharmaceutical companies and approximately half of the top 20 patent filers worldwide. Our client base spans Europe, Asia Pacific, and North and South America across the technology, pharmaceutical, medical, legal, chemical, automotive, government, and telecommunications sectors, which we serve from offices across five continents.

Founded in 1958, RWS is headquartered in the UK and publicly listed on AIM, the London Stock Exchange regulated market (RWS.L).

For further information, please visit:   www.rws.com .

 

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