RWS Group Concludes a Milestone Year

RWS Group Concludes a Milestone Year

RWS Holdings, the world’s leading provider of IP services, commercial translations and linguistic validation, announced its final results for the year ending 30 September 2016.

Financial Highlights delivered record revenues and profits ahead of market expectations: 

  • Sales increased by 28% to £122m (2015: £95.2)
  • Adjusted operating profit was up 40% to £32m (2015: £22.9m)
  • Adjusted profit before tax rose by 35% to £30.6m (2015: £22.7m)
  • Reported profit before tax was up 21% to £25.1m (2015: £20.7m)

Operational Highlights continued organic progress and investment in acquisition for future growth:

  • Acquisition of CTi, the world’s leading translation company focusing exclusively on life sciences translation and linguistic validation:
    • Excellent 11 month contribution from CTi, with sales of US$30.5m
    • Integration of Group’s life science activities complete
  • Good performance from core patent translation activities:
    • Enhanced gross margins
    • New client wins
    • Excellent progress in China
    • PatBase revenues advanced by 7%
    • Currency tailwinds post EU referendum bringing useful gains
    • IP support services accounted for 70%, and life sciences 20% of Group revenues
    • Overall Group gross margin improved by 339bp

Current Trading and Outlook:

  • Group performance in the first two months of the new financial year has been very strong, with underlying growth aided by favorable currency movements
  • The Group remains focused on developing sales opportunities across the world from its expanded geographical presence, service range and technology offerings
  • Net estimated Euro trading exposure hedged at an average rate of 1 Euro = 83p to 30 September 2016

Andrew Brode, Chairman of RWS, commented, “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. 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.”

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