18th Apr 2019 08:44
LONDON (Alliance News) - RWS Holdings PLC on Thursday said it is on track to deliver another record year following double-digit growth in earnings in the first half.
The language and intellectual property support services provider said it has performed strongly during the six months to the end of March, achieving record revenue of GBP172.3 million, up 23% compared to GBP139.6 million reported a year earlier.
On an underlying like-for-like basis, revenue increased by 10%.
Adjusted pretax profit, before amortization of intangibles and exceptional acquisition costs, is expected to be not less than GBP35.5 million, RWS said, a 24% increase over the prior year's GBP28.6 million.
This growth has been driven by stronger results from RWS Moravia and an improved performance at RWS Life Sciences, the company explained.
The margin improvement at RWS Moravia reflects the growth in demand for higher value localization services from several of its top technology clients, favourable exchange rates and overhead cost reduction. In the first half, RWS Moravia's revenue was up by 10% on a like-for-like basis and excluding the impact of foreign exchange.
Meanwhile, RWS noted its Life Sciences unit also had a good first half, as revenue advanced by 6% year-on-year, with revenue from its specialist and high-value linguistic validation product up 26%.
In RWS IP Services, revenue climbed by 13% in the first half, with RWS' European patent filing offering performing particularly well, the company noted.
The PCT translation business had a good first half, whilst the company's operations in China and Japan saw continued strong growth.
"We have had an excellent first half with double-digit underlying revenue growth from our two largest divisions," highlighted Chair Andrew Brode.
"We remain focused on organic growth and the excellent cross-selling opportunities that are on offer through our enhanced service offering, while continuing to review selective potential acquisitions," continued Brode. "Following a strong first half, we are confident of achieving another record year."
RWS shares were trading 9.8% higher on Thursday at 595.00 pence each.
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