RWS Holdings plc (AIM:RWS) – steady as she goes and cash building
The world's leading provider of patent translations, searches and international patent filing solutions has announced half year results for the six months ended 31 March 2015 broadly in line with expectations. The Group’s main business, patent translation, translates well over 70,000 patents and intellectual property related documents each year largely for blue chip multinational clients active in patent filing in the medical, pharmaceutical, chemical, aerospace, defence, automotive and telecoms industries.
Reported sales for the period of £45.4m (H1 2014: £46.9m) were marginally down on the prior year although on a constant currency basis were flat at £46.9m (H1 2014: £46.9m). Adjusted profit before tax was flat at £10.8m (H1 2014: £10.8m) and adjusted earnings per share up 3% at 3.9p (H1 2014: 3.8p) – note the 5 for 1 share split. Operating margins of 20.1% were broadly in line with the prior period at 20.67% and the balance sheet remains rock solid. The interim dividend was increased 5% to 1.03p. Operating profit of £9.1m resulted in an operating cash inflow…