REG - RWS Holdings PLC - Trading Statement

RWS HoldingsAnnouncement

29/10/2024 07:00

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RNS Number : 9489J  RWS Holdings PLC  29 October 2024

For immediate
release
               29 October 2024

 

RWS Holdings plc

Year End Trading Statement and Notice of Results

 

A return to growth in the second half, driven by encouraging performance

in AI-led solutions

 

RWS Holdings plc ("RWS" or "the Group"), a unique world-leading provider of
technology-enabled language, content and intellectual property services, today
provides an update on trading for the year ended 30 September 2024 ("FY24")
ahead of the announcement of its full year results on 12 December 2024.

FY24 Performance

The Group returned to growth in the second half, with organic constant
currency ("OCC")¹ revenue up 2% compared with -2% in H1, bringing the full
year in line with the prior year. This has been supported by meaningful
improvements in H2 in both Regulated Industries and Language & Content
Technology, as anticipated in the half year report. We saw continued progress
with our AI-led products and services, particularly in relation to TrainAI,
Language Weaver and Evolve. Both Language Services and IP Services continued
their growth path and delivered encouraging growth for the full year.

Reflecting adverse currency movements, FY24 reported revenues are expected to
be £718m, a decline of 2% compared with the prior year. The Group expects to
deliver adjusted PBT within the range of market expectations² before
adjusting for these currency movements.³

The Group had modest net debt⁴ of c.£14m at the end of September 2024 (31
March 2024: £39m net debt), supported by an improvement in receivables since
the mid-year.

For FY25 we expect to deliver modest organic revenue growth at constant
currency, with growth in volumes offsetting ongoing price pressure. We expect
foreign exchange to continue to be a headwind to reported revenue and adjusted
PBT.

Notice of Full Year Results

RWS will provide a further update with its full year results on 12 December
2024. To register your interest in attending the results presentation, please
email RWS@mhpgroup.com (mailto:RWS@mhpgroup.com) .

 

Ian El-Mokadem, CEO of RWS, commented:

"We have driven significant improvements in performance across the Group in
the second half. Language Services and IP Services returned to organic growth,
on a constant currency basis, for the full year.

"Whilst our market has been more challenging than anticipated when we set out
our medium-term strategy in 2022, it is clear that ongoing investments in our
growth initiatives and the efficiency actions we have made in line with that
strategy have enabled a more resilient performance.

"Our range of AI-centred solutions are gaining encouraging traction, with
TrainAI and Language Weaver in particular seeing strong growth. These
solutions, combined with our investment in sales effectiveness and our
continued focus on efficiency, enabled by our unique LXD platform, mean we are
well placed to emerge from the current market transition in a position of
strength."

 

Notes:

¹ Adjusted to reflect a like-for-like comparison between reporting periods
and assumes constant currency across both reporting periods.

² The latest Group-compiled view of analysts' expectations are available here
- consensus (https://www.rws.com/about/investors/analyst-consensus/) .

³ Reflecting exchange rate movements, primarily during the last two months of
FY24, the currency headwind impact on market consensus is estimated to be
c.£5m on reported revenue and c.£3m on adjusted PBT.

⁴ Net cash/net debt comprises cash and cash equivalents less loans but
before deducting lease liabilities.

 

For further information, please contact:

 RWS Holdings plc

 Ian El-Mokadem, Chief Executive Officer     01753 480200

 Candida Davies, Chief Financial Officer

 MHP (Financial PR advisor)                 rws@mhpgroup.com (mailto:RWS@mhpgroup.com)

 Katie Hunt / Eleni Menikou                 020 3128 8100

                                            07884 494112
 Deutsche Numis (Nomad & Joint Broker)

 Stuart Skinner / William Wickham           020 7260 1000

 Berenberg (Joint Broker)

 Ben Wright / Toby Flaux / Milo Bonser      020 3207 7800

About RWS:

RWS Holdings plc is a unique, world-leading provider of technology-enabled
language, content and intellectual property services. Through content
transformation and multilingual data analysis, our combination of AI-enabled
technology and human expertise helps our clients to grow by ensuring they are
understood anywhere, in any language.

Our purpose is unlocking global understanding. By combining cultural
understanding, client understanding and technical understanding, our services
and technology assist our clients to acquire and retain customers, deliver
engaging user experiences, maintain compliance and gain actionable insights
into their data and content.

Over the past 20 years we've been evolving our own AI solutions as well as
helping clients to explore, build and use multilingual AI applications. With
40+ AI-related patents and more than 100 peer-reviewed papers, we have the
experience and expertise to support clients on their AI journey.

We work with over 80% of the world's top 100 brands, more than three-quarters
of Fortune's 20 'Most Admired Companies' and almost all of the top
pharmaceutical companies, investment banks, law firms and patent filers. Our
client base spans Europe, Asia Pacific, Africa and North and South America.
Our 65+ global locations across five continents service clients in the
automotive, chemical, financial, legal, medical, pharmaceutical, technology
and telecommunications sectors.

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
(https://protect.checkpoint.com/v2/___http:/www.rws.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpmNjJiOGZiNzE4ODc2Y2QyMGJlNzgyOGYzOGRmYzNiYjo2OjczYzc6OWI2MmQ4YmYxNGM5ZmI4OTcwN2Q1YjQyM2M2MTFmMWIwNDZkM2NkYzFmMjgxY2M5MzRjNTQxY2M3MTEyN2VjMTpwOlQ6Tg)
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