Falling Revenue Challenges RWS Holdings in Fiscal 2023

by webmaster

Shares of RWS Holdings, a language and intellectual-property support services provider, dropped by 21.5% in early trade as the company announced a decline in revenue during fiscal 2023. Although there was a slight improvement in the second half of the year, the challenging environment impacted overall performance.

Decreased Revenue and Organic Growth

RWS Holdings reported a 2% decrease in revenue for the year ending on September 30, or a 6% decline on an organic constant-currency basis. The second-half revenue showed a 5% decrease on an organic constant-currency basis, compared to a fall of 7% in the first half. However, there were signs of improved trends across the services units.

Progress Towards Medium-Term Strategy

Despite the challenging macroeconomic environment affecting several end markets, Chief Executive Officer Ian El-Mokadem expressed optimism about the progress made with their medium-term strategy. This progress includes growth initiatives, pricing strategies, transformation programs, and portfolio expansion. These efforts have helped mitigate some of the effects of reduced activity in certain markets.

Ensuring Cost Base Alignment

To align with current levels of activity, the board has taken necessary actions to match the cost base accordingly. El-Mokadem is confident that levels will recover in due course.

Revenue and Profit Forecasts

RWS Holdings has provided a revenue forecast range of £738.1 million to £757.4 million ($897.5 million to $920.9 million), with a consensus of approximately £748.8 million. The adjusted pretax profit forecast ranges from £116.5 million to £129.0 million, with a consensus of around £125.8 million.

Financial Position

As of September 30, the company had net cash of £23 million.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >
Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Related Articles

Leave a Comment

− 1 = 7