RWS Holdings, a provider of language and intellectual-property support services, experienced a 21.5% dip in its shares on Wednesday. The company's shares fell by 51.20 pence to 186.80 pence at 03:46 ET (07:46 GMT) following a reported fiscal 2023 revenue decrease. However, the firm noted improving trends across its service units in the second half of the year.
The company reported a 2% annual revenue decrease, or a 6% decrease on an organic constant-currency basis. The decline was less severe in the second half of the year with a 5% fall. Despite these challenges, CEO Ian El-Mokadem expressed confidence in the firm's future recovery.
El-Mokadem referenced RWS's medium-term strategy, transformation programs, and portfolio expansion as mitigating factors against the challenging macroeconomic environment and reduced market activity. He further confirmed alignment of the cost base with current activity levels.
Looking forward, RWS's revenue forecast ranges from £738.1 million to £757.4 million, with a consensus of £748.8 million. The company also provided an adjusted pretax profit forecast of £116.5 million to £129.0 million, with a consensus of £125.8 million, and reported a net cash position of £23 million.
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