RWS returns to growth, currencies still a headwind
The AIM-traded company said its organic constant currency revenue increased 2% in the second half, contrasting with a 2% decline in the first six months of the year.
It said that improvement helped it close the year with revenue in line with the prior year, driven by significant contributions from its regulated industries, and language and content technology divisions, as well as continued momentum in AI-driven products such as TrainAI, Language Weaver, and Evolve.
However, adverse currency movements impacted reported revenue, expected to be £718m, marking a 2% decline over the year.
Despite that, the group still anticipated delivering adjusted profit before tax within market expectations, adjusted for currency effects.
Net debt was reduced to about £14m as of 30 September, down from £39m at the half-year mark, aided by an improvement in receivables.
Looking ahead to the 2025 financial year, RWS projected modest organic revenue growth at constant currency, with increased volumes expected to offset continued price pressures.
However, foreign exchange was likely to remain a headwind, affecting both reported revenue and adjusted profit before tax.
“We have driven significant improvements in performance across the group in the second half,” said chief executive officer Ian El-Mokadem.
“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.”
El-Mokadem said the company’s range of AI-centred solutions were gaining “encouraging” traction, with TrainAI and Language Weaver seeing particularly 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.”
RWS Holdings said it would release its full results for the year ended 30 September on 12 December.
At 0923 GMT, shares in RWS Holdings were down 14.19% at 136.62p.
Reporting by Josh White for Sharecast.com.