RWS Holdings (AIM:RWS) told investors it expects adjusted pre-tax profit for the year ended 30 September to come in around 9% ahead of the prior year, in line with market expectations, as the AI solutions group returned to growth after a decline in FY25.
The London-listed company, which provides language services, content management and intellectual property solutions to pharmaceutical, life sciences and technology clients, said organic constant-currency revenue grew about 3% in the year, reversing a 0.7% decline in FY25.
Reported revenue is expected to be around £700m, up around 2% on the prior year, which itself had fallen 4%. Adjusted pre-tax profit margin is expected at about 9.4%, up from 8.8% in FY25, even after absorbing a £1m loss from the newly acquired Obviously Group.
Net debt stood at about £38m at the end of September, up from £32.5m at the end of March, after RWS paid the £16.5m initial cash consideration for Obviously Group; the company described cash conversion as strong and ahead of expectations.
All three of RWS's segments delivered revenue in line with expectations. The 'Generate' division posted double-digit organic constant-currency growth, led by a strong first half for its TrainAI business and sustained demand from frontier AI model developers.
Whilst 'Transform' saw a mid-single-digit organic constant-currency revenue decline as the division continues its planned pivot to AI-led technology, though RWS pointed to encouraging early revenues from its new Language Weaver Pro platform, built with Cohere and launched in March. And, 'Protect' delivered mid-single-digit organic constant-currency growth, helped by new customer wins and the completed integration of Obviously Group, the IP and brand-protection platform RWS acquired for up to £40m in May.
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"I am pleased with the progress that the group has made in FY26. We returned to growth, grew profit and operating margin, and generated strong cash," said chief executive Ben Faes.
RWS also confirmed it has received French regulatory and Works Council clearance for its agreed acquisition of Acogroup, the parent company of Acolad, and expects to complete the deal within the next two weeks; the company said the acquisition would widen its European reach and enterprise client base across all three segments.
Patrick De Smedt joined the board as chair on 8 October, following his appointment's announcement on 17 September, with the board thanking Andrew Brode for his leadership as interim chairman over the past nine months.
RWS will publish full results for the year on 15 December.