RWS Holdings' FY revenues set to meet expectations

Intellectual property localisation services firm RWS Holdings said on Tuesday that both full-year revenues and adjusted pre-tax earnings were projected to be in line with expectations.

RWS expects full-year revenues to be no less than £355.0m, within the range of market expectations and in line with the £355.7m recorded last year, while adjusted pre-tax profits were also said to be in line with market expectations.

The AIM-listed firm highlighted that it had experienced increased demand for services within both its Life Sciences and Moravia divisions, as its teams helped with clinical trials for new Covid-19 vaccines, translated training material for Covid-19 related antibody testing devices and provided additional services to technology customers.

However, RWS added that much of this was offset by the continued impact of Covid-19, which delayed the onboarding of new clients within IP Services and led to some clients, particularly within the automotive and aerospace sectors, requiring less translation work.

Net debt sat at £38.0m on an IFRS 16 basis when including £23.0m of lease obligations, only a slight increase on the £37.0m reported a year earlier.

Chairman Andrew Brode said: "The group has delivered a resilient performance, reflecting its diversified revenue streams across its three specialised divisions.

"Whilst we are not reinstating financial guidance at this stage, due to ongoing market uncertainty, the group has a strong platform from which to continue to deliver resilient performance and to integrate the SDL acquisition effectively."

As of 0915 BST, RWS shares were down 3.97% at 580.0p.