RWS Holdings PLC – Results for the year ended 30 September 2019

RWS Holdings PLC – Results for the year ended 30 September 2019

RWS Holdings plc ("RWS", "the Group"), one of the world's leading language, intellectual property support services and localization providers, today announces its final results for the year ended 30 September 2019.

 

Financial highlights

 

Strong growth and increased margins drove results ahead of consensus market forecasts

 

2019

2018

Change

Revenue

£355.7m

£306.0m

+16%

Adjusted operating profit[1]

£78.4m

£66.3m

+18%

Adjusted profit before tax1

£74.2m

£61.8m

+20%

Reported profit before tax

£57.7m

£39.7m

+45%

Adjusted earnings per share1

21.3p

17.4p

+22%

Basic earnings per share

16.5p

10.4p

+59%

Dividend

Proposed final

7.0p

6.0p

+17%

Total for year

8.75p

7.5p

+17%

Net Debt1

£36.8m

£65.1m

-43%

 

 

Highlights

 

·     Growth in sales and profits across all three main divisions

·     Language Solutions' acquisition of Alpha Translations Canada Inc., a specialist legal translations provider

·     Opening of new Moravia head office in Brno, Czech Republic

 

RWS Moravia

·     Record revenues of £149.9m (2018: £126.9m) and record adjusted operating profit growth of 52% to £25.7m (2018: 11 months, £17.0m). 

·     As a leading provider of technology-enabled localization services, this business has consistently focused on developing, innovating and investing in its services to drive future growth both from existing customers, which include many of the largest technology companies, and from an increasing cadre of new clients.

 

RWS IP Services

·     Strong growth in revenues, up 12% to £125.2m (2018: £111.9m) driven by Eurofile and Worldfile divisions.

·     Excellent performance in Asia Pacific, a key area of focus for growth in future years.

·     Investment across departments to enable more efficient management of increasing volumes of business.

·     Adjusted operating profit increased to £36.1m (2018 £34.4m).

 

RWS Life Sciences 

·     Highest divisional growth in revenues at 25%, advancing to £65.5m (2018: £52.3m), driven by growth in linguistic validation services and the transfer of Moravia Life Science clients effective 1 October.

·     Adjusted operating profit increased to £20.3m (2018: £14.5m).

 

Outlook

 

·        Underlying performance in the first two months has been in line with the Board's expectations, but the sharp increase in the GBP/USD exchange rate is clearly unhelpful.

·        Excellent pipeline of new clients in IP Services.

·        With all of the Group's integration plans now executed, we are well positioned to convert a wide range of sales opportunities across our full suite of services and technology platforms.

 

 

Andrew Brode, Chairman of RWS, commented:

 

"This has been another remarkable year for the Group, delivering our 16th year of unbroken growth in revenues, profits and dividends since flotation in November 2003.

 

"We were delighted that RWS was named Company of the Year at the recent AIM Awards and that our three main divisions delivered record performances. We also strengthened our specialist legal and financial translation offering through the acquisition of Alpha Translations Canada Inc.

 

 "The Group has now consolidated its position as one of the world's leading providers of language services and is taking advantage of the many opportunities provided by our extensive service offerings, broadened client base, expanded global presence and the demand for our specialist intellectual property, life sciences and localization services.  Our strong balance sheet also ensures that we remain well positioned in the pursuit of further acquisition opportunities.

 

"We look forward with confidence to achieving further progress in 2020."

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