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RWS Holdings - interim results suggest more to go for
Posted 03/06/11
RWS Holdings, the patent translations and technical search group, has announced excellent half year results for the six months ended 31 March 2011.
Sales for the period were up 10.5% to £32.4m or 11.6% on a constant currency basis
Profit before tax ( before amortization of intangibles) was up 21.6% to £8.2m and resulting adjusted diluted earnings per share up 21.7% to 14.0p. The interim dividend was also increased 15.9% to 3.65p.
The Group remains cash rich with net cash at period end £20.0m (2010: £23.8M), after the £12.8m purchase and fit out of new premises.
EBIT margins rose over 2.5% to 25.1%, helped by growth in higher margin Information division and Chinese growth. Prospective margins will benefit from the head office move into new freehold premises (completed Jan-11) with the annualised rental saving of £0.5m.
The final outturn for the year is now at the top-end of forecast range of profit before tax of £15.6m-£15.8m). Current estimates are for full year September 2011 earnings per share of 26.58p suggesting a current year multiple of 16.1x.
The global environment also appears to have improved materially. In April 2011, the European Patent Office published figures showing 235,000 European patent applications were filed in 2010, a record in its 34 year history and an 11% increase over 2009. Later in May 2011, the World Intellectual Property Organisation reported that 164,300 international patent applications were filed under its Patent Cooperation Treaty (PCT) in 2010, an increase of 5.7% over 2009.
The shares moved to all time highs on the back of the results and with heaps of cash in the bank, improving margins and a supportive market there appears to be a lot more to go for. A 3.5% dividend yield offers further attraction.
This entry was posted 11 months, 3 weeks ago and was filed under RWS Group.
