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(Alliance News) - RWS Holdings PLC on Tuesday said annual revenue jumped but pretax profit fell, partially due to costs associated with its most significant acquisition to date.
The Buckinghamshire, England-based company recorded a pretax profit of GBP55.0 million in the year ended September 30, down 6.3% from GBP58.7 million reported the year before.
This is due to higher costs related to the amortisation of acquired intangibles.
These more than doubled in the year to GBP34.4 million from GBP15.3 million the year prior.
Acquisition costs more than doubled as well, to GBP11.2 million, from GBP4.1 million.
Furthermore, share-based payments also increased 27% to GBP1.4 million from GBP1.1 million and the cost of exceptional items in the period totalled GBP14.1 million, up 80% from GBP7.8 million the year prior.
Revenue of the technology-enabled language provider amounted to GBP694.5 million in the year, almost doubled from GBP355.8m recorded the year before.
RWS explained with a strong performance from its Regulated Industries division and "stabilised" revenue from its IP Services division.
The company also added that SDL PLC, the "most substantial" acquisition in its history, contributed to revenue for 11 months of the year.
RWS proposed a final dividend of 8.50 pence, increased 17% from 7.25p paid the year before.
The total dividend for the year will therefore amount to 10.50p, up 17% year-on-year from 9.00p.
Going forward, the company will focus on capitalising on its expanded scale, footprint and capabilities to drive sustainable organic growth from an efficient cost base.
"The group has delivered a strong set of results against the background of the Covid-19 pandemic and integrating SDL," Chief Executive Ian El-Mokadem commented.
He added: Current trading is in line with our full-year expectations and I am confident that we are now in a stronger position than ever."
Shares were down 4.7% at 600.50 pence each on Tuesday afternoon in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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