TIDMRWS
RNS Number : 3963E
RWS Holdings PLC
18 October 2018
For immediate release
18 October 2018
RWS Holdings plc
Year End Trading Statement
An outstanding year, consolidating our leading position in
global language services
RWS Holdings plc ("RWS", "the Group"), the world's leading
provider of intellectual property (IP) support services (patent
translations, international patent filing solutions and searches)
and a leading provider of life sciences, localization and
commercial language services, today provides an update on trading
for the year ended 30 September 2018, ahead of the announcement of
its full year results on 11 December 2018.
Trading and Financial Update
RWS has enjoyed by far its best year ever and the Board expects
Group revenues to be not less than GBP305 million, compared to
GBP164 million in 2017, an increase of over 85%. This significant
growth has been driven primarily by the acquisition of Moravia, in
November 2017, together with solid performances across the Group's
activities, and a favourable recovery in currency in the second
half.
Adjusted profit before tax (before amortization of intangibles,
exceptional acquisition and related restructuring costs) is also
expected to have grown strongly and to be slightly ahead of market
expectations, reflecting improved margin in our IP support services
business as well as a markedly improved second half performance at
Moravia.
The Group announced the acquisition of Moravia on 3 November
2017. Moravia is a leading provider of technology-enabled
localization services to the largest technology companies in the
world, which are primarily located on the West Coast of the United
States. While the first half of the financial year saw lower
volumes from a small number of clients, and adverse currency
movements, Moravia has delivered excellent second half results and
we are delighted with its performance.
Moravia has enhanced RWS's global presence with its operations
in the Czech Republic, the United States, China, Argentina, Japan
and Ireland, whilst at the same time helping to position the Group
as a leading global player in the provision of language
services.
The world has experienced considerable volatility in currency
markets in recent years, 2018 being no exception. The strategic
shift in the Group's focus towards the United States, whilst
reporting in sterling, has changed currency exposure so that RWS is
now broadly neutral in its currency pairs except GBP/USD. With the
Group's largest net revenues in USD, partially offset by the
Group's debt denominated in USD, we expect to hedge approximately
60% of our USD exposure for 2019.
The Group continues to enjoy excellent cash generation and has
made good progress in reducing net debt to below GBP66 million at
30 September 2018, after the GBP242.3 million acquisition of
Moravia, which was funded by existing cash resources, an
increase in debt facilities and net proceeds of GBP181.9 million
from an equity placing. The Board anticipates that strong cash
generation will continue to fund the Group's acquisition strategy
and its progressive dividend policy.
Andrew Brode, Chairman of RWS, commented on outlook:
"This has been a transformational year for RWS, underpinned by a
strong financial performance. We have successfully completed the
integration of our two life sciences acquisitions, and acquired and
assimilated Moravia, establishing the Group as a leading global
language services provider."
"With market leading divisions in IP support services, life
sciences and localization, we believe that we are optimally
positioned to drive further international expansion.
"Whilst we are focused upon organic growth and excellent
cross-selling opportunities from our recent acquisitions, merger
activity in the translation industry has accelerated markedly,
offering interesting possibilities. We continue to review selective
potential acquisitions which would extend our capabilities,
technology platforms or geographical presence in the IP support
services and specialist translation spaces.
"There is increasing momentum across the business which
underpins our confidence in delivering further significant progress
in the new financial year."
For further information, contact:
RWS Holdings plc
Andrew Brode, Chairman
01753 480200
Richard Thompson, Chief Executive Officer
MHP
Katie Hunt / Simon Hockridge 0203 128 8794
Numis
Stuart Skinner / Kevin Cruickshank (Nominated Adviser) 0207 260
1000
Michael Burke (Corporate Broker)
About RWS:
RWS is the world's leading provider of patent translations, one
of the leading players in the provision of IP support services, a
market leader in life sciences translations and linguistic
validation, as well as a high-level specialist language services
provider in other technical areas, providing for the diverse needs
of a blue-chip multinational client base spanning Europe, North
America and Asia.
RWS is based in the UK, with offices in Europe, the United
States, China, Japan and Australia, and is listed on AIM, the
London Stock Exchange regulated market (RWS.L).
For further information, please visit: www.rws.com
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END
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