Rws Share Discussion Threads

[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?

[phillis] 23/3/2022 08:50

Money for old rope

[bulltradept] 23/3/2022 08:41

Seems a bit over done...

[indiestu] 23/3/2022 08:39

Oh, I see, trading update, stinker.....

[elsa7878] 23/3/2022 08:36

FY 2022 Outlook

The Group started the current financial year well, has seen the strong performance from our Regulated Industries division continue and is achieving accelerated growth in our Language and Content Technology division. SaaS revenues are building faster than anticipated. We are seeing further weakness in IP Services' performance as a result of the recent update from the European Patent Office, which allows clients to delay the granting of patent applications in order to benefit from protection under the Unitary Patent, which is expected to come in to effect in the second half of CY 2022. We expect revenue growth from Language Services to be slightly moderated, maintaining the growth seen in FY 2021, as a direct result of reducing our expectations for translations into Russian.

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 expectations(2) (prior to the contribution from the acquisition of Fonto, which was announced today).

[indiestu] 23/3/2022 08:34

How can a 1.5 billion company lose 25% of its valuation in 30 mins on news of a tiny acquisition. I am baffled.

[jurgenklopp] 23/3/2022 08:33

Brutal reaction to trading update.

[orange1] 08/3/2022 09:05

A bit of non-RNS news from yesterday:

RWS, the world’s leading provider of technology-enabled language, content management and intellectual property services, has been selected by STARLUX Airlines to power the next phase of its global expansion strategy. The Taiwan-based airline company has recently expanded from three to 12 destinations.

STARLUX Airlines needed a content management system that could provide customers with an intuitive, self-service digital experience in their own language. Selecting Tridion, an intelligent content platform, will enable the company to easily offer local-language experiences across any digital channel for future routes and services.

“Our home-grown content management system wasn’t able to support our business objectives,” explains Lucas Chuang, CIO of STARLUX Airlines. “We needed to provide customers with an intuitive, self-service digital experience in their own language – something that just wasn’t possible with our current CMS without a great deal of development work.”

Alongside managing website content, Tridion will also enable STARLUX to centrally manage and translate the inflight entertainment programme list and related content.

“STARLUX Airlines has big ambitions, and needs to move quickly in order to capitalize on the market opportunity,” says Thomas Labarthe, President of Language Services and Technology at RWS. “We’re delighted to play such a central role in the company’s journey, and look forward to working closely with the team over the coming months and years to help them realize their global ambitions.

RWS’s Professional Services team managed the entire project, from designing STARLUX Airlines' technical architecture, to implementing the platform and integrating with third-party systems. Tridion is an intelligent content platform that enables organizations to create, manage and deliver multilingual digital content to customers, employees and partners. Some of the world’s largest brands and airline companies rely on Tridion to deliver multilingual digital experiences across any channel.