RWS Holdings delivers record full-year revenue

Intellectual property support services provider RWS Holdings posted its final results for the year to 30 September on Tuesday, reporting record revenues and profits ahead of market expectations.

The AIM-traded firm said sales increased by 28% to £122.0m, with adjusted operating profit up 40% to £32.0m.

Adjusted profit before tax rose by 35% to £30.6m.

The board said those figures reflected 10% underlying profit growth, 2% positive exchange rate movements and 23% from CTi's contribution since acquisition net of associated loan interest costs.

Reported profit before tax was up 21% to £25.1m, and adjusted earnings per share were 10.9p, an increase of 35%.

RWS’ final dividend of 4.45p was up from 3.85p, with the total dividend increasing by 15% to 5.6p, continuing an unbroken series of dividend increases since flotation in 2003.

Net debt at year end was £1.5m, swinging from £30.6m net cash a year ago, after the £47.1m acquisition in October 2015.

Looking at current trading, the RWS board said group performance in the first two months of the new financial year had been “very strong”, with underlying growth aided by favourable currency movements.

It said it remained focused on developing sales opportunities across the world from its expanded geographical presence, service range and technology offerings.

Net estimated euro trading exposure was hedged at an average rate of €1 to 83p to 30 September 2017.

“RWS has delivered exceptional results against a low-growth world economic environment and the first year of our ownership of CTi has fulfilled all of our expectations,” said RWS chairman Andrew Brode/

“The board remains highly encouraged by the group's opportunities to continue to grow significantly and profitably across its now broader portfolio of market leading businesses, particularly as it looks to build on its position in life sciences in the USA.

“The group's strong cash generation and healthy balance sheet leave us well positioned to pursue that growth through acquisitions and organic investment, whilst also maintaining our progressive dividend policy.”