By Najat Kantouar
Shares of RWS Holdings fell 21.5% in early trade after the company said that revenue fell during fiscal 2023 amid a challenging environment, although improved slightly in the second half year.
Shares at 0746 GMT were down 51.20 pence at 186.80 pence.
The language and intellectual-property support services provider said that revenue fell 2% over the year ended Sept. 30, or 6% on an organic constant-currency basis. Second-half revenue fell 5% on an organic constant-currency basis and from a fall of 7% in the first half on improving trends across the services units, RWS said.
“We have continued to make positive progress with our medium-term strategy in the second half of the year, including our growth initiatives, pricing, transformation programs and expanding our portfolio. This progress has helped to mitigate some of the effects of a challenging macroeconomic environment which has resulted in reduced activity in a number of our end markets,” Chief Executive Officer Ian El-Mokadem said.
He added that the board has taken action to ensure that the cost base matches current levels of activity, and that he is confident that levels will recover in due course.
The company has provided a revenue forecast range of 738.1 million pounds to 757.4 million pounds ($897.5 million to $920.9 million) with a consensus of GBP748.8 million.
Adjusted pretax profit forecast is GBP116.5 million to GBP129.0 million with a consensus of GBP125.8 million.
The company had net cash of GBP23 million at Sep. 30.
Write to Najat Kantouar at [email protected]
Read the full article here