RWS HOLDINGS PLC reports Full Year Results

2025-12-11 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On December 11, 2025, RWS Holdings plc announced its financial results for the year ended September 30, 2025. The company reported a total revenue of £690.1 million, marking a 4% decrease from £718.2 million in the previous year. The organic constant currency (OCC) revenue remained largely flat, reflecting resilience amidst market disruptions and strategic transformations. The decline in revenue was attributed to a 10% drop in OCC revenue from Regulated Industries, which was partially offset by a 3% growth in Language Services driven by advancements in AI services, particularly in the APAC region.

Adjusted profit before tax (PBT) fell significantly to £60.4 million from £106.7 million, representing a 43% decrease year-on-year. The reported loss before tax was £99.7 million, a stark contrast to the profit of £60.0 million recorded in FY2024, primarily due to a non-cash goodwill impairment of £88.0 million and exceptional restructuring costs. Adjusted basic earnings per share (EPS) also saw a decline, dropping 44% to 12.1 pence from 21.6 pence in the previous year, while basic loss per share was reported at 27.0 pence, a decrease of 39.8 pence compared to the prior year.

In terms of dividends, RWS proposed a final dividend of 4.6 pence per share, down 54% from 10.0 pence in FY2024. This brings the total dividend for the year to 7.05 pence per share, a reduction of 43% from 12.45 pence in the previous year. The Board indicated that this rebased dividend aligns shareholder returns more closely with sustainable profit performance and supports the company’s transition to a technology-led, AI-driven growth strategy.

Operationally, RWS reported an operational free cash flow of £80.1 million, a substantial increase of 45% from £55.1 million in FY2024, demonstrating improved working capital management and tighter capital expenditure discipline. However, net debt rose to £25.4 million from £12.9 million, reflecting the payment of dividends and the receipt of proceeds from the disposal of PatBase.

Looking ahead, RWS Holdings provided guidance for FY2026, expecting low single-digit OCC revenue growth, moderate margin expansion, and continued strong free cash flow conversion. The company aims to accelerate its OCC revenue growth in the medium term while ensuring a gradual improvement in profitability. The Board remains committed to a progressive dividend policy following the rebasing of the dividend.

In summary, RWS Holdings plc’s FY2025 results reflect significant challenges, including a decline in revenue and profit, but also highlight a strategic pivot towards AI solutions and operational efficiencies. The company is positioned to leverage its technology and expertise in the evolving market landscape as it enters FY2026.

Original Announcement

Title: Final Results
Date: 2025-12-11
Source: London Stock Exchange