11th Oct 2013 06:51
LONDON (Alliance News) - RWS Holdings PLC Friday said its full-year adjusted pretax profit is expected to come in above market expectations after revenues were buoyed by strong demand for patent translations.
The intellectual property support services and commercial translations company said it expects to report an adjusted pretax profit of GBP20.9 million for the year to September 30, after revenues rose 11% to GBP76.1 million, from GBP68.8 million, and margins also increased.
"This strong performance primarily reflects further organic growth in the core patent translations business, together with a full year's transfer of patent translations generated from the inovia network," the company said in a statement.
"There have been strong sales performances from our overseas operations as well as our commercial translation divisions, while PatBase subscription revenues advanced by a further 11%," it added.
RWS Holdings said it has hedged its estimated net Euro exposure at an average rate of 87 pence per Euro for the current financial year, but remains unhedged to dollar net exposure.
Its cash balance at the end of the last year stood at GBP16 million, with shareholders funds expected to exceed GBP71 million. That will allow it raise its final dividend in line with market expectations, it said.
"We have a good pipeline of new client wins and prospects, and can look forward to the benefits of the full consolidation of our acquisitions. These developments leave the Group well positioned to make further positive progress as we enter a new financial year," Chairman Andrew Brode said in a statement.
It expects to release its full-year results December 9.
By Steve McGrath; [email protected]; @SteveMcGrath1
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