RWS Holdings expects annual sales to beat expectations

13th Oct 2015 08:59

(ShareCast News) - Shares in RWS Holdings jumped over 18% early on Tuesday, after the intellectual property services provider said it expects annual sales to be above market expectations.In a trading update, the London-listed group revealed it expects full-year sales to amount to approximately £95.1m, which would represent a 2% year-on-year increase and a 5% hike on a constant currency basis.The group said it has enjoyed a sharp recovery in the second half of the year, with sales rising 10% year-on-year to £49.7m, after sales on a constant currency basis were flat in the first six months of the year.Adjusted profit before tax is expected to total £22.5m, which would represent an increase on the previous year and a better-than-expected result."This performance reflects further organic growth across the Group with good results from the core patent translation activities, which benefitted from the conversion to sales of clients won in earlier periods, and a spike in patent applications arising from the 2011 America Invents Act," the group said.The group said its balance sheet has strengthened over the last 12 months, with net cash resources of approximately £30m, while shareholder funds exceeded £85m.RWS added the strong balance sheet will boost its acquisition plans next year.RWS shares were up 17.89% to 163.57p at 0912 BST on Tuesday.