RWS Holdings recorded a 5% increase in revenue for the first half of its fiscal year, the company said, with growth concentrated in its Generate segment where demand for its TrainAI offering has been particularly strong.
Adjusted basic earnings per share for the half rose 34% year-on-year, while adjusted profit before tax improved by 33%, reflecting both top-line expansion and continued cost-efficiency work.
The Generate division delivered pronounced revenue gains, the company said, as TrainAI both won an additional program with an existing customer and started to produce initial revenues from a new global technology client. These developments were singled out by management as key contributors to the segment's performance.
RWS's Protect segment also experienced healthy revenue growth. That improvement was underpinned by robust activity in the Renewals business and by new client wins, particularly in the Asia-Pacific region, according to the company.
RWS attributed part of the improvement in profitability to a set of ongoing efficiency initiatives. Those measures include process rationalization, scaling delivery through offshore centres, and automation of workflows, which the company said helped margins in the reporting period.
In line with a previously announced rebasing, management reduced the interim dividend to 1.75 pence per share.
Looking ahead, RWS expects full-year organic revenue growth in the mid-single-digit range on a constant currency basis. The company also warned of an approximate £2 million foreign exchange headwind to full-year profit before tax.
RWS noted that its Obviously acquisition is expected to have a £1 million impact during the current year, with net contributions from that acquisition anticipated to begin in fiscal year 2027.
Summary
RWS reported a 5% year-on-year revenue increase for H1, driven by TrainAI-related growth in its Generate segment and solid performance in Protect, especially Renewals in the Asia-Pacific market. Adjusted EPS and adjusted profit before tax rose 34% and 33% respectively, while efficiency measures supported improved profitability. Management lowered the interim dividend to 1.75 pence per share and signalled a modest FX headwind and a £1 million near-term impact from the Obviously acquisition.
- Financials: Revenue +5% y/y; adjusted basic EPS +34%; adjusted profit before tax +33%.
- Growth drivers: Generate segment led by TrainAI; Protect supported by Renewals and Asia-Pacific client wins.
- Outlook and headwinds: Mid-single-digit organic constant currency revenue growth expected for the full year; ~£2m FX headwind to full-year PBT; Obviously acquisition to impact current year by £1m with contributions from 2027.