TIDMRWS
RNS Number : 2600C
RWS Holdings PLC
12 April 2017
For immediate release 12 April 2017
RWS Holdings plc ("the Group")
Half Year Trading Statement
RWS Holdings plc ("RWS", "the Group"), the world's leading
provider of intellectual property support services (patent
translations, international patent filing solutions and searches)
and a leading provider of life sciences and commercial language
services, today provides an update on trading for the half year
ended 31 March 2017 ("the first half"), ahead of the announcement
of its half year results on 20 June 2017.
Trading & Financial Update
RWS has delivered a strong first half performance, such that the
Board expects the Group to achieve record revenues of not less than
GBP76 million for the first half compared to GBP56.9 million in the
first half of 2016, an increase of 33.6%.
Adjusted profit before tax (before amortisation of intangibles,
share option costs and exceptional acquisition costs of Corporate
Translations Inc ("CTi") in 2016 and LUZ, Inc,("LUZ") in 2017) is
expected to be at least GBP19.0 million in the first half of 2017,
a 36.7% increase compared to 2016 (H1 2016: GBP13.9 million),
reflecting significantly enhanced sales and gross margins.
This first half performance was driven by particularly strong
growth in our patent translations and search businesses, including
an exceptionally strong, 20.6%, increase in PatBase's higher margin
subscription-based revenues, together with a full first half
contribution from CTi, a six-week contribution from LUZ, the
recently acquired Life Sciences translation specialist based in San
Francisco, and currency tailwinds. We are also pleased to have
achieved meaningful new client wins in both intellectual property
and Life Sciences as well as increased levels of business from a
number of our established clients.
In February 2017, RWS acquired LUZ, one of the world's largest
specialist Life Science language service providers focused upon
medical devices and regulatory requirements and based in San
Francisco, for a cash consideration of US$82.5m. Luz is highly
complementary, in terms of both its specialism and geographical
presence, to CTi, the Connecticut-based world leading Life Sciences
translation and linguistic validation company, which the Group
acquired in late October 2015. Following these two acquisitions,
RWS has become a leading player in the worldwide Life Sciences
support services sector. LUZ has transitioned smoothly as it has
become part of the Group and is performing in line with our
expectations.
The Group has continued to strengthen its financial position
with shareholder funds expected to be approximately GBP149 million
at 31 March 2017, following the GBP40 million placing arranged as a
part of the LUZ acquisition. As at 31 March 2017, net debt was
approximately GBP33.0 million, well below one times expected EBITDA
for 2017.
Market Update
The World Intellectual Property Organisation (WIPO) recently
published statistics showing a 7.3% increase in the 2016 PCT
filings to 233,000. Applicants from the USA remain the largest
filers under this system, with China delivering the most growth.
The European Patent Office (EPO) also issued statistics for 2016
showing that the total number of European filings increased by 6.2%
to 296,000, again a new record. European filings by Chinese
applicants increased by 25%. Significantly, the EPO reported an
increase of 40% in granted patents, which it attributed to improved
productivity and efficiency.
Andrew Brode, Chairman of RWS, commented on outlook:
"RWS continues to perform extremely well across its service
offerings. We are delighted to have acquired LUZ, in the face of
stiff competition, which provides us with a strong platform from
which to deliver our North American strategy.
"As the premier global supplier of intellectual property support
services and now a major force in Life Sciences we believe we have
an unrivalled position from which we can drive further
expansion.
"Our strong financial and market position leaves us well placed
to attract selected niche acquisition opportunities in our chosen
specialities.
"Overall, we anticipate further progress in the second half of
the year, which will benefit from a full contribution from LUZ, and
beyond."
For further information contact:
RWS Holdings plc
Andrew Brode, Chairman 01753 480200
Richard Thompson, CEO
MHP
Katie Hunt / Simon Hockridge 0203 128 8789
Numis
Stuart Skinner / Kevin Cruickshank (Nominated Adviser) 0207 260
1000
Michael Burke (Corporate Broker)
About RWS:
RWS is the world's leading provider of patent translations and
one of the leading players in the provision of intellectual
property support services and a market leader in Life Sciences
translations and linguistic validation as well as a high level
specialist language service provider in other technical areas,
providing for the diverse needs of a blue-chip multinational client
base from Europe, North America and Asia. RWS is based in the UK,
with offices in Europe, the USA (New York, Connecticut, Colorado,
San Francisco, Boston and Chicago), China, Japan and Australia, and
is listed on AIM, the London Stock Exchange regulated market
(RWS.L).
For further information, please visit: www.rws.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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