Trading Update & Directorate Changes

RNS Number : 9870P

RWS Holdings PLC

12 October 2011

 



RWS GROUP

For immediate release                                                                                              12 October 2011

RWS Holdings plc

 Year End Trading Statement and Board Changes

RWS Holdings plc (RWS), Europe's leading provider of intellectual property support services (patent translations and searches) and technical translations, today provides an update on trading for the year ended 30 September 2011 ahead of the announcement of the preliminary results, which is expected on 14 December 2011.

Against a challenging economic and market background, which shows few signs of improving, Group trading has continued in line with our expectations.  RWS will achieve at least an 8% increase in revenues to approximately £65 million, reflecting good organic growth in the core patent translations business as well as excellent results in medical translations, a turnround in Germany and strong growth in China.  Profits are expected to be in line with market expectations, and substantially ahead of 2010.

RWS' long stated strategy is focused upon organic growth complemented by the deployment of its significant cash resources for selective acquisitions, providing they can be demonstrated to enhance shareholder value.  In line with this strategy, on 11 October we announced the acquisition of inovia, a  leading provider of web-based international patent filing solutions, which adds a highly complementary and scaleable service to our existing patent search and translation offering.

Looking forward, RWS has hedged its estimated Euro trading exposure to October 2012 at an average rate of 87 pence per Euro, a similar rate to 2010-11, and its budgeted US$ exposure has been hedged for the whole of 2011-12 at $1.59 per £.

The already robust RWS balance sheet has continued to strengthen, with shareholder funds in excess of £58 million and net cash of £25 million before the inovia transaction.  This significant cash resource is a key element in acquisition negotiations given the continuing reluctance of banks to lend.  The Directors anticipate that the strong cash balance will underpin the ability to increase the final dividend for shareholders in line with market consensus, and payable in February 2012.

Board Changes

RWS announces that it will appoint Reinhard Ottway as Group Chief Executive with effect from 1 January 2012. This appointment will follow the retirement for personal reasons, of Liz Lucas who has been with RWS for 34 years and Chief Executive of its Translation activities for 19 years. Liz has accepted an invitation to become a Non Executive Director of RWS and will represent RWS on the board of inovia Holdings Pty Limited, the acquisition of which was announced on 11 October 2011.

Reinhard joined RWS in 1993, initially to develop the Group's business in Germany. Since 2001 he has been a key member of the executive team as Business Development Director, and has played a pivotal role in the expansion of our business in Europe, America and Asia, including the establishment of RWS in China. Reinhard has been invited to all RWS board meetings since flotation in 2003 and will now join the Board in his own right.

Reinhard will be supported by a newly created Executive Board comprising six senior managers and covering all aspects of the Group's operations, with many years of managerial experience within RWS. They have already begun to assume their new responsibilities.

Andrew Brode, Executive Chairman, commented:

"The Board, employees and shareholders would like to thank Liz for her inspirational leadership of the Group's translation activities and its development to become the widely respected market leader.  She leaves behind her executive responsibilities with the business in excellent shape and a strong management team to succeed her. We are delighted that she will be remaining on the Board as a non-executive and are certain that she will provide clear benefits, as well as continuity, to the Group as we move forward.

"We look forward with confidence to Reinhard and the Group's experienced management team effecting a smooth transition and continuing to build upon the Group's progress thus far."

- ends -

For further information contact:

RWS Holdings plc

Andrew Brode, Executive Chairman                                                                               01753 480200

MHP

Katie Hunt/Simon Hockridge                                                                                        020 3128 8100

Numis

Stuart Skinner (Nominated Adviser)                                                                              020 7260 1000

James Serjeant (Corporate Broker)

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, electronics and telecoms industries.  RWS also provides specialist technical, legal and financial translation services for areas of industry outside the patent arena.  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).

Approximately 1,000,000 patent documents are published per annum, 200,000 of which are published in Europe (Source: European Patent Office) and the intellectual property market has shown significant growth in recent years, with patent applications in Europe having doubled over the last ten years.

For further information please visit: www.rws.com

 

END

 

 

MSCDKDDDPBDDOKD