StockMarketWire.com - Language services group RWS posted a 7% fall in first-half profit, partly owing to acquisition costs, though its underlying performance improved and it hiked its dividend.

Pre-tax profit for the six months through March decreased to £24.0 million, down from £25.8 million year-on-year.

Revenue jumped 92% to £326.4 million, boosted by the acquisition of SDL, and adjusted pre-tax profit rose 53% to £50.5 million. Underlying revenue grew 3% on an organic constant currency basis.

RWS declared an interim dividend of 2p per share, up 14% year-on-year.

The company said the SDL integration was progressing well, with total cost synergies of at least £33 million now identified, ahead of the £15 million originally stated.

RWS said its trading performance since the first-half period end had been 'good', in line with its expectations for the full year.

'It has been a transformational six months for the group, with the acquisition of SDL positioning us as the global leader in language services and technology,' chief executive Andrew Brode said.

'Against the backdrop of a global pandemic, the integration has progressed rapidly, and to schedule, with a strong management team in place to complete the integration plans.'

'The second half has started well, with a recovery in our core markets, particularly in the US where our former life science business continues to show strong growth, leaving the group well placed to deliver in line with our expectations for the full year.'


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