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RWS Holdings: cash still flowing nicely and one to follow in 2010
Posted 14/12/09
Europe’s leading provider of intellectual property support services (patent translations and technical searches) and technical translations, announced decent preliminary results for the year ended 30th September 2009in what could be viewed as a fairly turbulent year for the world of patent translation.
Sales increased by 2.2% to £55.3m, profit before tax (before amortization of intangibles and exceptional tax credit ) rose by 3.8% to £14.5m and basic earnings per share were up 5 % to 25.2p.
The final dividend was 8.85p (2008: 7.9p) resulting in a total dividend up by 12% to 11.65p which equates to a yield of approximately 3.7%.
Operating profit of £13.4m resulted in cash generated from operations of £13.6m. Net cash at the financial year end was £24.3m. (2008: £22.1m), after £2.8m of acquisitions and repayment of a £2.4m development loan – you know how we appreciate cash!
Unfortunately, with base rates at all time lows there was a significant reduction in interest income to bolster the numbers.
The Group commented on a solid performance in core patent translations business, after absorbing the effects of a full year of the London Agreement, assisted by sterling weakness.
Trading in the first two months of the new financial year has been in line with expectations with a modest improvement in business climate in key markets.
The results statement draws attention to the the principal risks to the business being; errors in the provision of the Group’s services; in a mismatch between currencies (especially as between the euro and sterling); and in regulatory changes to patent translation requirements in Europe.
Thankfully the Group’s cash pile has been well guarded - if only others had been so prudent!
In our view these were decent results considering what RWS had to battle against over the past 12 months and, most importantly, net cash actually increased.
One to follow in 2010.
This entry was posted 7 months, 2 weeks ago and was filed under RWS Group.
