RWS Holdings PLC

Latest Results (21.01.2026):

RWS Holdings PLC — first half (H1) of 2025 (six months ended 31 March 2025): the Group reported H1 2025 revenue of £344.3m (down 2% vs H1 2024) and an adjusted profit before tax of £18.0m, while reporting a loss before tax of £12.7m. Management says OCC (constant‑currency) revenue grew modestly and has unveiled a new Generate/Transform/Protect growth strategy focused on AI, product and SaaS to accelerate medium‑term growth.

Headline financials

Revenue £344.3m (‑2% YoY); adjusted EBITDA £38.1m (‑41% YoY); adjusted PBT £18.0m (‑61% YoY); reported (loss)/PBT £(12.7)m; adjusted basic EPS 3.6p; basic (loss)/EPS (3.1)p. Interim dividend maintained at 2.45p.

Margins and drivers

Gross margin fell to 43.3% (H1 FY24: 45.7%). Adjusted PBT margin dropped to 5.2% from 13.0% a year earlier. Management attributes the decline to mix changes (TrainAI ramp‑up and APAC growth), weaker performance in Regulated Industries, pricing pressure in Language Services and £22m of non‑trading impacts (FX, higher amortisation, PatBase sale and increased expensed tech investment).

Divisional performance

Three of four divisions delivered OCC growth: Language Services (reported £158.4m; OCC +4% driven by TrainAI and APAC), L&CT (reported £71.2m; OCC +6%, SaaS licence mix rising to 43%), IP Services (reported £49.1m; OCC +1% despite PatBase divestment), Regulated Industries declined (reported £65.6m; OCC down c.7–9%).

Cash, debt and liquidity

Cash £69.5m, borrowings £96.5m, net debt £27.0m (modest). Cash conversion strong in the period at 171% (skewed by working capital improvement). RCF headroom US$93.5m (US$126.5m drawn of US$220m facility). FY25 capex and investments continue, including £10.3m intangible additions in H1.

Outlook and guidance

Management expects continued modest organic growth in H2 to deliver low single‑digit OCC growth for FY25 and reiterates adjusted PBT guidance of £60m–£70m for FY25 (assumes H2 GBP/USD 1.33).

Strategy and corporate actions

RWS has launched a new growth strategy to become a technology‑first content solutions partner, reorganising into three business units: Generate (content tech & TrainAI), Transform (localisation & language tech) and Protect (IP Services). The Group acquired the IP of Papercup (AI dubbing) and appointed a new Chief Product & Technology Officer to drive product and AI integration.

Operational and quality metrics

High client retention: 94% repeat services revenue and record NPS of +51 (12 months to 31 March 2025). 84% of localisation volume now managed by the LXD production platform, with ~60% machine‑translated first via Language Weaver.

Profitability headwinds and actions

Management cites near‑term margin pressure from mix and delivery model changes but plans efficiency gains through automation, tighter cost control, reorganised go‑to‑market and a shift toward more predictable SaaS/subscription revenues to drive margin accretion in the medium term.

People and scale

Headcount (FTE) rose to 9,403 (HY24: 7,814) reflecting TrainAI resourcing; voluntary attrition improved to 10.5% (rolling 12 months).