RWS confirms some 'limited' exposure to Silicon Valley Bank

RWS Holdings clarified its exposure to the US-based Silicon Valley Bank (SVB) on Monday, which was taken over by federal regulators on Friday in America’s second-largest bank collapse.

The AIM-traded firm said its $220m revolving credit facility is provided by a syndicate of eight global banks, of which Silicon Valley Bank UK is part, having committed 10% of the facility.

RWS has $26m drawn down currently, with SVB's share of the current draw down being $2.7m.

The company also said it has a small cash position held within SVB in the US, which is currently expected to be fully protected under the Federal Deposit Insurance Corporation (FDIC) scheme, which has a coverage limit of $0.25m.

SVB UK, meanwhile, holds a portion of RWS's forward currency contracts, which the company said it was working through to minimise its limited exposure to the contracts.

“RWS therefore believes that it has limited exposure to SVB,” the board said in its statement.

“It reiterates the outlook provided in its recent statement, and continues to expect to deliver 2023 adjusted profit before tax in line with market expectations.

“The group remains well placed to continue to deliver on its strategy with the additional benefit of a strong balance sheet, having had net cash of £71.9m as at 30 September.”

At 0955 GMT, shares in RWS Holdings were down 2.05% at 333.8p.

Reporting by Josh White for Sharecast.com.