RWS puts in good first half performance
Language services and technology company RWS reported good first half performance on Thursday, despite foreign exchange headwinds, with revenue in line with its own expectations.
The AIM-traded firm said it expected to report full-year adjusted profit before tax in line with market expectations.
It said the integration of SDL was progressing “well”, with total cost synergies of at least £32m now identified - significantly ahead of the £15m it originally stated.
RWS said it would continue to identify further cost-saving synergies as it progressed the integration through the year, and would provide updates on the expected impact on profit.
A number of work streams were underway to further the integration and improve the group's operational structure, the board said.
It noted that the acquisition of SDL made RWS the world’s largest provider of language services and language technology.
The rationale for the SDL transaction was validated by the integration work undertaken to date, the directors claimed.
“The successful and rapid integration of RWS and SDL remains the group's top priority in the near term and I would like to thank colleagues across the business who are working tirelessly to progress this complicated project whilst continuing to deliver a first-class service to our customers, grow our business and work in a challenging environment,” said chairman Andrew Brode.
“Trading in the first half has been encouraging despite having been impacted significantly by adverse foreign exchange rates.
“Notwithstanding foreign exchange pressures, the future for the group is bright.”
Brode said the markets in which the company operated were growing, adding that it saw opportunities for organic growth in all four divisions, while it drove synergies across the expanded group.
“The cash generative nature of our business model and strength of our balance sheet enables the group to continue to look for selective acquisition opportunities in specific sectors and geographies.
“We are making continued efforts to ensure the wellbeing of our teams whilst providing an excellent service to our customers and focusing on the ongoing integration work.
“We, therefore, look forward to a successful second half.”
RWS said it would announce its results for the six months ended 31 March on 8 June.
At 1338 BST, shares in RWS Group were up 0.88% at 688p.
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