Year End Trading Statement

RNS Number : 2642Q

RWS Holdings PLC

11 October 2013

 



For immediate release                                                                                              11 October 2013

RWS Holdings plc

Year End Trading Statement

RWS Holdings plc ("RWS, "the Group"), Europe's leading provider of intellectual property support services (patent translations and filing, as well as patent searches) and commercial translations, today provides an update on trading for the year ended 30 September 2013 ahead of the announcement of its final results, which is expected on 9 December 2013.

On a constant currency basis, RWS will achieve at least a 10.4% increase in revenues to approximately £76.0 million (2012: £68.8 million), in line with expectations. This strong performance primarily reflects further organic growth in the core patent translations business, together with a full year's transfer of patent translations generated from the inovia network.  There have been strong sales performances from our overseas operations as well as our commercial translation divisions, while PatBase subscription revenues advanced by a further 11 %. Reported revenues are expected to be up by 11% to £76.1 million (2012: £68.8 million). As a result of increased margins and before several IFRS accounting adjustments, it is now anticipated that the Group will achieve adjusted profit before tax of £20.9 million, which would be ahead of current market expectations.

RWS' strategy is focused upon organic growth, complemented by the deployment of its significant cash resources for selective acquisitions.  We announced on 17 September 2013 the acquisition of the remaining two thirds of the share capital of inovia Holdings Pty Limited (inovia), a leading provider of web-based international patent filing solutions.  inovia adds a substantial, complementary and highly scaleable service to our existing intellectual property support services portfolio.  In the year ended 30 June 2013, inovia achieved gross revenues of US$26.5 million including translation work transferred to RWS, an increase of 37% over 2012, with much enhanced momentum in its final quarter.  In RWS' 2012/13 financial year, inovia was its largest customer, thus underlining the strategic significance of the acquisition.  inovia will be consolidated into the Group's accounts from
17 September 2013, with the Group therefore benefitting from a whole year's revenues in 2013/14.

Looking forward, RWS has hedged its estimated net Euro exposure to 30 September 2014 at an average rate of 87 pence per Euro, but remains unhedged with regard to US$ net exposure.

The RWS balance sheet shows further strength, with shareholder funds expected to exceed £71.0 million and net cash of £16.0 million, after two acquisitions totalling £17.0 million.  The directors anticipate that this strong balance sheet will allow an increase in the final dividend for shareholders at least in line with market consensus, and payable in February 2014.

Executive Chairman Andrew Brode commented:

"We are delighted that RWS has made further significant progress in all parts of its business in 2013, and has successfully completed the acquisitions of Pharmaquest and inovia.

We have a good pipeline of new client wins and prospects, and can look forward to the benefits of the full consolidation of our acquisitions.  These developments leave the Group well positioned to make further positive progress as we enter a new financial year."

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For further information contact:

RWS Holdings plc

Andrew Brode, Executive Chairman                                                                               01753 480200

MHP

Katie Hunt/Simon Hockridge                                                                                        020 3128 8794

Numis

Stuart Skinner (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).

Over 2,000,000 patent applications are filed globally per annum.  Applications filed in Europe have more than doubled in the last ten years to 258,000 applications in 2012 (source: European Patent Office), a 5.24% increase from 2011.  Applications from Asia have also seen continued significant growth.

For further information please visit: www.rws.com

 

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