RWS Holdings (AIM:RWS)shares fell, losing 12% to 90.4p, after half-year results showing adjusted profit before tax rose 33% to £24m.
Revenue grew c.5% and organic constant‑currency (OCC) revenue rose c.7% year‑on‑year, AI-related products and services increased to 32% of Group revenue (HY25: 26%).
Operational free cash flow conversion was 67% (HY25: 92%), net debt was a modest c.£33m after a £17m final dividend, £7m of capex and £11m of exceptional items, and the Board declared an interim dividend of 1.75p (HY25: 2.45p).
"This performance reflects the initial positive effects of our new operating model and the important milestones achieved across our three strategic growth pillars," said Ben Faes, Chief Executive Officer.
Generate delivered strong double‑digit OCC revenue growth led by an exceptional TrainAI performance, Transform's OCC revenue declined as planned while being pivoted to technology‑first offerings, and Protect delivered good OCC growth driven by Renewals and Q2 momentum.
The group launched Language Weaver Pro with Cohere, acquired Obviously in early May (an AI‑enabled platform for IP and brand management) and secured two AI patents.
RWS said it continues to trade in line with expectations for the full year, expects mid‑single‑digit OCC revenue growth, improving profitability and continued strong free cash flow conversion, and flagged a c.£2m adverse FX PBT impact after hedging plus an expected £1m in‑year impact from Obviously with contributions expected in FY27.
An analyst presentation takes place today at 09:30 BST and a recording will be made available on the Group's website.
