RWS Holdings PLC

Latest Results (08.12.2025):

RWS Holdings PLC — H1 2025 (six months ended 31 March 2025): reported revenue of £344.3m (-2% year‑on‑year) with a reported loss before tax of £12.7m; adjusted profit before tax was £18.0m (down 61%) as the group invests in technology and experiences mix, margin and FX headwinds while unveiling a new growth strategy.

Revenue and operating profit

Reported revenue £344.3m (HY24: £350.3m, -2%); adjusted PBT £18.0m (HY24: £45.6m, -61%); adjusted PBT margin 5.2% (HY24: 13.0%). Adjusted EBITDA was £38.1m (down 41%).

Reported loss, EPS and margins

Reported (loss)/profit before tax: £(12.7)m (HY24: £17.3m). Basic (loss)/earnings per share: (3.1)p (HY24: 3.0p). Adjusted basic EPS: 3.6p (HY24: 9.1p). Gross margin fell to 43.3% (HY24: 45.7%).

Cash, debt and dividend

Cash and equivalents £69.5m; modest net debt £27.0m at 31 March 2025 (FY24: net debt £12.9m) after paying a £37m final dividend. Cash conversion was strong at 171% in H1. Interim dividend maintained at 2.45p (unchanged).

Divisional performance — highlights

Three of four divisions delivered organic constant‑currency (OCC) growth. Language Services revenue £158.4m (OCC +4%) driven by TrainAI and APAC; L&CT revenue £71.2m (OCC +6%) with SaaS licences growing to 43% of licence revenue; IP Services revenue £49.1m (OCC +1%); Regulated Industries down (reported and OCC) due to reduced activity and changes in linguistic validation management.

AI, technology and product traction

AI‑centred products/services represented 26% of Group revenue (H1 FY24: 25%). TrainAI and Language Weaver momentum noted; 84% of localisation volume now managed by the LXD production platform and ~60% of that machine‑translated first. RWS acquired Papercup IP to add prosody‑capable dubbing and integrate multimedia into Trados.

One‑time / non‑trading impacts and investments

Adjusted results were reduced by ~£22m of non‑trading items (FX, increased amortisation, PatBase sale impact) and higher current‑year technology expensing, plus a ~£6m gross profit hit from mix changes; lower capitalisation of R&D also weighed on operating profits.

Strategy and operating changes

New growth strategy announced: reorganise into three business units — Generate (content tech & TrainAI), Transform (localisation & language tech) and Protect (IP Services); focus on regional sales teams, technology‑first propositions, automation/AI for efficiency, and culture/data improvements. Group to operate under the new structure from 1 October 2025.

Outlook and guidance

Group expects continued modest organic growth in H2 and low single‑digit OCC growth for full FY25. Adjusted PBT guidance for FY25 reiterated at £60m–£70m, assuming H2 GBP/USD of 1.33.

Customer and ESG metrics

High client retention with 94% repeat services revenue and record NPS of +51 (12 months to 31 March 2025). SBTi‑approved GHG targets in place; Scope 1–2 emissions down in H1 while Scope 3 rose.