Rws Share Discussion Threads

[value viper] 23/3/2022 13:49

Hadn't realised FD owned no shares before today !!Slightly mixed feelings on that

[alter ego] 23/3/2022 13:40

Ian El-Mokadem CEO purchased 10k shares today along with Desmond Glass CFO who also bought 10k shares.

Perhaps they think the market has over-reacted

[keyno] 23/3/2022 12:33

The Russian/Ukraine war won't last for ever - probably not much longer I believe - and then the Russian state will cease to be the global pariah that it sort of is now.

I say "sort of" because not all countries are treating them as pariahs. The global money machine will quickly resume its onward grind to fully include Russia again when peace breaks out - particularly if Putin goes, which I believe he will soon - though the EU patent issue is bound to affect RWS, as they state. However, that's hardly come as a surprise to them. Fall has to be overdone. I also topped up today - for better or worse.

[microscope] 23/3/2022 12:21

TBurns understandable that it's raw if you know someone going through the pain, but I'm not seeing stalling organic growth, slowing in pace of growth maybe but not stalling. This morning's acquisition, while small in the bigger picture, appears to have some nice numbers.At this price they seem more than fairly valued though the situation in Ukraine and Russia is sure to have an impact.The concern would be if other parts of the world started following the EU lead on patent translations. But I haven't seen any sign of that. EU changes already factored in imho.Looks tempting now.

[essentialinvestor] 23/3/2022 12:17

So until this morning he held zero shares!.

[alter ego] 23/3/2022 12:10

Christopher Lewey Group Corporate Development Director has purchased 10k shares at 347p today.

[redartbmud] 23/3/2022 11:42

jeff

Sorry about the typos, not concentrating after a tiring day yesterday.

I agree that the patent issue may be a big problem for them. Tt must be easy business to acquire and once experienced staff are in place there is a template to work to and a lot of repetition, for legal reasons.

Looking at year on year organic growth, they add so many layers of new business that it is difficult to strip out the historic numbers to any degree of accuracy. Comparisons are only good year on year, and not reliable historically. That may not be strictly necessary, if the business is growing in a compliant market.

Each new acquisition brings additional revenue and profit and as long as that is earnings enhancing then it is fine. They also bring with them their own baggage and company ways of management and operation. We assume a seamless fit and little integration problems. Having a multi-site sprawling empire can cause difficulties and maintaining more headcount increases the fixed and semi-fixed cost base. Again, as long as they are employed up to capacity then their contribution should be more tha acceptable. There must be an element of duplication in admin that is dealt with somewhwre along the line, and that should enhance profitability. How many accounts staff, personnel and general admin are duplicated across the group? On the other hand it can be counter productive for the central team to keep their eyes on all of the balls in play.

Just working through some of my thoughts that are a little under researched.
In August 2020 I dropped a load at £6.6432 and reduced the running cost of my holding to 4.0451p (yes pence) per share. I am not therefore inclined to spend excessive amounts of time researching things to death, but I am reluctant to go gung ho into adding on a big dip that has been initiated by the latest company update.

[phillis] 23/3/2022 11:36

I am with you Jeff
Topped a few myself

It seems to be well explained, Lets say £135m (lower than consensus) for adjusted PBT, £5m lower than consensus - hardly a disaster

"The Group expects to deliver good growth and margin progression on the prior year, with a second half weighting to the results. Performance for the year is expected to be within, albeit at the lower end of, the range of current market expectations2 (prior to the contribution from the acquisition of Fonto, which was announced today).

The latest Company-compiled view of analysts' expectations for FY 2022 gives a range of £744.8m-£770.7m for revenue, with a consensus of £761.2m, and a range of £131.5m-£144.8m for adjusted profit before tax, with a consensus of £140.0m.

Whats the panic
MMs taking advantage of you all

[jeffian] 23/3/2022 11:07

Well I've just re-read the statement and I'm not sure it says "organic growth has stalled and (y)our business model to grow further is based upon acquisition alone". In fact, organic growth is mentioned quite a lot.

One thing that may have spooked the market is the reference to the unified European Patent which in the past has had a big influence on the RWS share price. Obviously, the need to translate all patents into every EU language has been a big element of RWS business and they have been working hard to decrease their reliance on it by globalising.

[bulltradept] 23/3/2022 10:59

Everything growth like in AIM has lost well over 40 - 50% of its value from about Nov last year. Sector rotation is really smashing everything.

[tburns] 23/3/2022 10:52

If organic growth has stalled and your business model to grow further is based upon acquisition alone then you have a problem. That is where I think RWS are at now and I expect this to be closer to 330p than 350p before the day is out

[jeffian] 23/3/2022 10:49

"The difficukty that I have is the fact that tyey acquire so many businesses.
The company throws off cash like confetti at a wedding, but uses a chunk annually to buy more Revenue and Earnings. It is impossible to track organic growth because the base changes so often."

I'm struggling to see the problem with that. It's the ones that don't "throw off cash like confetti" that I would worry about! Growth-by-acquisition is a perfectly valid strategy, particularly if part of a 'virtuous circle' whereby new acquisitions are self-funded by additional cash generated. I also hold Diploma which follows a very similar path.

Although fully-loaded with RWS shares already, I have taken the opportunity to add more this morning.

[inkey28] 23/3/2022 10:45

Oh well, got this one completely wrong. Bough in a couple of months ago thinking we had hit the bottom technically. Had a small top up at £3.48,average down a bit. Guess am holding for a good while now just to break even.

[keyno] 23/3/2022 09:56

OK. Thanks.

[tburns] 23/3/2022 09:51

I am aware of someone who is going through this process

[elsa7878] 23/3/2022 09:50

Forecast PE now around 13 - 14.

Post-tax profit approx £100 million / 390 million shares.

[keyno] 23/3/2022 09:48

What is your source please tburns?

[tburns] 23/3/2022 09:43

RWS are laying off a whole host of peeps at their Head Office in Chalfont St Peter as their business model has changed and patents no longer need to be translated into lots of languages as part of revised EU law. Also, all staff who buy into the shareoption scheme have been told that when their next option expires on the 1st April 22, they cannot sell their shares right away due to the conflict in Ukraine and Russia!! They have to apply for a phtsical paper certificate, this is buying RWS time for some reason I suspect but don't know why. Either way they are weak now

[redartbmud] 23/3/2022 09:37

Indie

Growth stocks have been dirty words in the markets for a few weeks.
It doesn't take much to trash the ones that are considered to be underperformers going forward.
As a general comment - if world trade suffers from the disruption caused by Russia, in Ukraine, maybe thay are anticipating a much lower demand for commercial translation across languages

RWS may underparform for a couple of years or more.

[indiestu] 23/3/2022 09:11

Could this be construed as a profit warning? If growth is in question then the current high rating must be appropriately adjusted.

[redartbmud] 23/3/2022 09:08

The difficukty that I have is the fact that tyey acquire so many businesses.
The company throws off cash like confetti at a wedding, but uses a chunk annually to buy more Revenue and Earnings. It is impossible to track organic growth because the base changes so often.
They have put out their forecast targets for 2022-24 and 2024-26.
The scribblers have reacted with red pens.

[sharpedge7] 23/3/2022 09:06

Don’t know if these figs are right but HL showing a PE of 5 and a yield of over 3%. Anyone know if correct?

[redartbmud] 23/3/2022 09:02

Capital Markets Day presentation at 2.00pm
I am trying to sign up at present.
They have asked if I am an existing shareholder, that is as far as it has proceeded.
I answered yes, of course.

[phillis] 23/3/2022 08:57

How about “ a bargain at these prices”

[indiestu] 23/3/2022 08:54

What do you mean money for old rope? Do you mean RWS is old rope? Therefore overpriced?