29th Oct 2024 11:52
(Alliance News) - RWS Holdings PLC on Tuesday said that it expects to deliver modest growth in the year ahead, despite seeing a decline in financial 2024.
RWS Holdings is a technology-enabled provider of language services such as translations. Its shares were down 18% at 131.87 pence each in London on Tuesday around midday.
For the year ended September 30, the firm expects to report an annual revenue decline, despite returning to organic constant currency growth of 2% in the second half. In the first-half, it fell 2%.
Reported revenue is expected to be GBP718 million, while adjusted profit before tax is expected to be "within the range of market expectations" at GBP112.8 million, which would represent a decline from GBP120.1 million.
At September 30, RWS Holdings had net debt of around GBP14 million, compared to GBP39 million at March 31.
For financial 2025, the firm expects to deliver modest organic revenue growth at constant currency, with growth in volumes offsetting ongoing price pressure.
"Whilst our market has been more challenging than anticipated when we set out our medium-term strategy in 2022, it is clear that ongoing investments in our growth initiatives and the efficiency actions we have made in line with that strategy have enabled a more resilient performance," said Chief Executive Officer Ian El-Mokadem.
"Our range of AI-centred solutions are gaining encouraging traction, with TrainAI and Language Weaver in particular seeing strong growth. These solutions, combined with our investment in sales effectiveness and our continued focus on efficiency, enabled by our unique LXD platform, mean we are well placed to emerge from the current market transition in a position of strength."
By Holly Beveridge, Alliance News senior reporter
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