RWS Holdings returned to growth in its latest year, with profit up around 9%, as demand for its AI training-data services offset continued pressure on its traditional translation business.
The immediate reaction in RWS shares on Tuesday was fairly lacklustre, reflecting a strong run in the stock already this year.
The language and AI services company said organic revenue rose about 3% to 30 September, a turnaround after a decline the year before, with revenue of about £700m. Adjusted pre-tax profit rose about 9%, with an improved margin, and cash generation was strong.
Growth was led by its “Generate” division, with TrainAI, its business providing data to train artificial intelligence models, benefiting from demand from developers of frontier AI systems.
Its “Transform” translation and localisation business fell mid-single-digit, though RWS pointed to encouraging early sales of a new AI-powered product and recognition as a leader in its field. Its “Protect” intellectual property business grew, helped by its recent move into brand protection.
RWS said it was making progress on its strategy, including the imminent completion of its acquisition of Acolad, which will expand its reach in Europe, and the launch of new technology.