UK's RWS Holdings H1 revenue rises 5% led by TrainAI
UK's RWS Holdings H1 revenue rises 5% led by TrainAI
Overview
UK AI solutions provider's H1 revenue up 5% yr/yr, led by strong TrainAI performance
Adjusted basic EPS for H1 rose 34% yr/yr; adjusted PBT up 33%
Company cut interim dividend to 1.75p after previously announced rebasing
Outlook
RWS expects mid-single-digit revenue growth on OCC basis for full yr
Company sees c.£2m FX headwind to full-yr profit before tax
Obviously acquisition expected to have £1m in-year impact, contributions from FY27
Result Drivers
TRAINAI PERFORMANCE - Exceptional revenue growth in the Generate segment was driven by TrainAI, which benefited from an additional programme with an existing client and initial revenues from a new global technology client
EFFICIENCY PROGRAMME - Improved profitability was supported by ongoing efficiency initiatives, including process rationalisation, scaling of offshore delivery centres and automation of workflows
PROTECT SEGMENT GROWTH - The Protect segment saw good revenue growth, underpinned by a strong performance in the Renewals business and new client wins, especially in APAC
Company press release: ID:nRSK8446Ha
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Pretax Profit |
| -GBP 9.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for RWS Holdings PLC is GBp159.00, about 54.8% above its June 10 closing price of GBp102.70
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)