RWS trading in line despite economic uncertainty

22nd Feb 2023 11:00

(Sharecast News) - RWS said in an update on Wednesday that despite economic uncertainty and conflict in eastern Europe, it produced cash-generative, profitable growth in 2022, in line with market expectations.

The AIM-traded firm, which was holding its annual general meeting, said it had maintained its unbroken record of dividend growth, and made progress on the actions and investments it outlined at its capital markets day in March last year.

It said it was continuing to focus on delivering its medium-term strategy, despite macroeconomic challenges.

The investments outlined last March were said to be progressing well, with the successful completion of the first transformation programme in early 2023 involving a move to a single Microsoft collaboration platform across the group.

RWS said its full-year outlook remained in line with market expectations, underpinned by several new client wins and strong retention amongst existing clients.

However, the board warned that certain projects were now expected to start in the second half of the year.

The group's intellectual property services had been impacted by the Unitary Patent (UP), but the directors said trading remained on track for the year, despite a short delay to the UP's implementation, now expected to come into operation in June.

"We remain pleased with the progress of our investments in technology where the depth of experience we have in developing and training AI engines is of increasing importance to our industry and to our clients," chairman Andrew Brode told shareholders.

"The forthcoming launch of our enhanced AI data services offering will further position the group well to capitalise on the growth of AI solutions as highlighted at our capital markets day last year.

"Our unique capabilities, diverse client base, geographical spread and end-market exposure, combined with our strong cash generation and balance sheet, underpin our resilience, our confidence in the opportunities provided by the multiple growth drivers across our markets, and our ability to make attractive acquisitions."

At 1112 GMT, shares in RWS Holdings were down 1.8% at 360.6p.

Reporting by Josh White for Sharecast.com.