According to a recent article in Slator, RWS Group’s market capitalization is now beyond the $1bn mark (in part, thanks to the slightly stronger pound Sterling). This comes on the back of an April 12, 2017 update on the first half of our financial year, which ended March 31, 2017. Shares have surged, pushing the company to the highest margins we’ve ever seen.
In its trading statement, RWS noted revenue growth by 33.6% to “not less than” GBP 76m in the 6-month reporting period compared to the same time in 2015/16. This includes the first full half year contribution by CTi and a six-week contribution by recently acquired LUZ.
Profits were up strongly with pre-tax profits climbing over 36% to GBP 19m from GBP 13.9m from last year. This was due to “significantly enhanced sales and gross margins” contributing to the result.
The IP side of the business also strongly contributed to the growth with our PatBase patent subscription service showing a modest, yet high margin increase, up more than 20%. This suggests a continued growth in global patent filings driven by a Chinese application boom.