RWS Holdings ends year with profit ahead of forecasts

The AIM-traded firm said that performance for the 12 months ended 30 September reflected a stronger-than-expected margin, driven by both an improved margin mix and the early stages of operational efficiencies from the integration of SDL into the group.

It said it remained highly cash-generative, resulting in a movement from net debt excluding lease liabilities of £15.1m at the end of the 2020 financial year, to net cash of about £45m as at 30 September if this year, after acquisition costs and the costs of delivering synergies following the acquisition of SDL.

Net debt, including lease liabilities, was expected to be around £3m.

“The group has delivered strong results, with a robust revenue performance combined with a stronger than anticipated margin, following the acquisition of SDL,” said chief executive officer Ian El-Mokadem.

“Following a good few months in the business, it is clear to me that I have joined RWS in a strong position, with an excellent team in place to drive the business forward and build on its leadership of its growing, fragmented markets, alongside a healthy cash position to support the group's strategy.

“We look forward to providing an update, in a capital markets day in the first quarter of next year, on our plans to continue to build upon the group's strong position and track record.”

RWS said it would provide a further update with its full year results on 14 December.

At 0926 BST, shares in RWS Holdings were up 4.03% at 632.5p.