8th Apr 2020 12:19
(Alliance News) - RWS Holdings PLC on Wednesday withdrew its guidance for financial 2020 and said that it had a "less favourable trading performance" in the second quarter due to project deferrals and lower volumes due to disruption caused by Covid-19 pandemic.
These impacts in the second quarter saw RWS recording sales of GBP169.2 million in the first half ended March 31, down 1.8% on GBP172.3 million a year ago, the company added.
RWS provides language translation, localization and intellectual property support solutions. It has temporarily closed all its offices globally in line with government orders, with the exception to China, where four offices have reopened.
In recent days, RWS has seen increased demand for services within both its Life Science and Moravia divisions. These are in relation to clinical trials for new Covid-19 vaccines and translation of training material for Covid-19-related antibody testing devices.
However, the company has seen a fall in demand from customers more directly exposed to the pandemic, particularly in the travel sector.
RWS therefore expects revenue for second half of financial 2020 to be held back by the virus pandemic as some customers curtail marketing-related localization expenditure and as a result of a lengthening of the on-boarding of new customers.
Chair Andrew Brode said: "Notwithstanding the near-term challenges presented by Covid-19, the excellent new business wins in the first half of the year, further good progress in China, and the group's strong financial position give the group firm foundations for the long-term success of the business."
RWS said it has cash reserves of GBP29 million and a recently amended USD200 million banking facility, of which USD80 million has been drawn.
Shares in RWS were down 6.1% at 476.00 pence each in London on Wednesday.
By Tapan Panchal; [email protected]
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