RWS investors welcome new strategy to accelerate growth

(Sharecast News) - Half-year results from RWS were well received by the market on Tuesday as the corporate content solutions group unveiled a new growth strategy under its new boss. Financial figures for the six months to 31 March were already flagged in a trading update in April, while full-year guidance was unchanged, so the 5% jump in the share price was likely due to chief executive Ben Faes's new strategy to accelerate growth.

Faes, who joined in January, said that the business needs to "fundamentally change the way it operates", and develop a "culture of clear ownership and accountability across the group".

As part of these changes, RWS is launching a new, simplified go-to-market positioning with regional sales teams and a tech-first proposition, supported by the recent appointment of a new chief product and technology officer. The company also said it will drive efficiency through automation and AI, along with strong cost control.

The company is also re-organising into three business units: Generate (content tech and TrainAI); Transform (localisation businesses); and Protect (IP services).

"Having helped to shape the strategy and the establishment of these programmes, our executive team is highly energised about the new direction we are taking the business in," Faes said.

"I am confident that this new growth strategy will allow RWS to become the content solution partner of choice, able to deliver accelerated and profitable growth and acquire additional capabilities through focused M&A."

Half-year results showed a 2% fall in revenues to £344m, along with a 61% slump in adjusted pre-tax profit to £18m, mainly due to one-off costs. Organic constant currency revenue growth however was 1.4%, while client retention remained high at 94%.

RWS said it continues to target a full-year adjusted pre-tax profit of £60m-70m, as previously guided, along with single-digit organic revenue growth.

The stock was up 5.2% at 89.65p by 0952 BST.