Rws Share Discussion Threads

[jg88721] 10/3/2017 19:28

but I'm already here, Phillis

[phillis] 10/3/2017 09:36

jg
well better to keep the nutters away dont you think?

[jg88721] 10/3/2017 09:29

agreed Phillis. I've held for over a decade too, and plan to hold for another one! For an outstanding company, never ceases to amaze that this is such a quiet board!

[phillis] 10/3/2017 09:24

this is a wonderful stock and i have been a fan for over a decade
looking forward to a trading update in early April
last comment from the AGM RNS

"As a result, profits for the first quarter were comfortably ahead of management's expectations"

The share price is a bit flat following the placement activity so a good time for some top up

IHT free in an ISA to boot

[jeffian] 15/2/2017 19:45

And Telegraph's Questor too.

[alphabeta4] 15/2/2017 18:46

Tipped in The Times today - 'strong track record on growth and acquisitions'.

[jg88721] 15/2/2017 18:17

thanks for posting Andrew

[essential] 15/2/2017 09:14

Bought into these last night- technically looking very strong

[phillis] 15/2/2017 08:22

OK with me too Andrew

[alter ego] 14/2/2017 22:30

Well, there we have it from the horses mouth (apologies to AB who I have met and has only two legs). Whatever advantages a full listing might appear to confer, it's clear to me that one of the attractions of companies like RWS is that management and shareholders interests are perfectly aligned when it comes to IHT.

[alphabeta4] 14/2/2017 17:36

Hi jg and alter ego, thanks for your replies. Seems a shame if they don't fully list, perhaps a bit of downside from having a significant holder who in theory should be working in all shareholder interests albeit I would gather lots are happy with how well their investment has done here and will be keen to keep management on board. It would hopefully expand the amount of information we get too. Hey ho.

[brode2] 14/2/2017 17:26

I confirm that I and more than 20% of our other shareholders are very interested in IHT/BPR relief, so a move to the Full List is highly unlikely in the near term.We like being a Top 10 Aim listed company.

[martinthebrave] 14/2/2017 14:28

Stockopedia's Graham Neary likes the results -

RWS Holdings (LON:RWS)

Share price: 354p (+4.5%)
No. shares: 215.8m
Market cap: £764m

Acquisition and Placing

AGM Statement

A strong statement to open today's news:

"Since [30 September 2016], the Group has traded strongly with underlying growth bolstered by favourable currency movements. We are achieving meaningful new client wins in both of our core activities, intellectual property and Life Sciences and increased levels of business from a number of our established clients. As a result, profits for the first quarter were comfortably ahead of management's expectations.

I must admit that I haven't studied this company before, but it sounds quite interesting:

RWS Group is internationally renowned for providing high-quality translation, intellectual property and language support services, which we deliver through our in-house translators, searchers and technical experts.

Excuse my ramblings, but shouldn't IP translation and search be secular growth industries in today's economy? RWS has had 13 successive years of growth in sales & profits - is that a mark of their individual brilliance as a company, or is it mostly to do with growth trends in their markets? I'd be curious to learn more.

Anyway, today's $82.5 million acquisition is for the life sciences division:

The Acquisition strengthens the Group's leading position in global Life Sciences both in the US and Europe, building upon and complementing the October 2015 acquisition of Corporate Translations Inc. ("CTi") and creating a full service offering. It also enhances the platform for expansion into Asia, building on the existing Chinese and Japanese presence of other RWS divisions.

The Acquisition also brings strong cross-selling opportunities through enhanced exposure to the important West Coast patent market and potentially bringing new clients to the wider Group. It also provides diversification to the Group (including currency) and further visibility across the value chain.

It's good to see a combination of funding sources being used: the placing, cash and a bank term loan, with most of it coming the placing (worth $50 million at GBPUSD = 1.25).

The Value Rank is not a big fan of this stock, at a PE ratio of 27x. Without going into it in any more detail, it wouldn't surprise me if this stock was in fact decent value here - specialist, niche services with huge growth momentum behind them are often worth paying up for.

[alter ego] 14/2/2017 13:44

regarding a full listing, I doubt this is likely. From memory, I believe Andrew Brode has 2(?) daughters and clearly it is in his interest and theirs that his shareholding should be passed on without being subject to IHT. As an AIM stock, it would be exempt whereas a full listing would not. Just my opinion but family firms are often kept on AIM for this reason. In fact, LTHM was once a fully listed company but some years ago moved to AIM. It's no coincidence that the family have a large shareholding IMO.

[jg88721] 14/2/2017 12:55

Hi Alpha
yes, I give mgmt benefit of doubt too. Luz was formed in 1994, now has revenue of $29m, so clearly a growing business. Profits growing too - I'd like to understand why the jump last year, I'm sure RWS insiders know (presumably due to business growth - but is some part of it one-off in nature, what prospects for sustained growth at that rate, or something more moderate)?.

I'm just disappointed we weren't offered more detail on the financials. I trust bd and mgmt - I have owned since 2009, and never sold. I just don't why there is understand such limited disclosure on the new acquisition - would be nice to try and understand it a bit more!

[alphabeta4] 14/2/2017 12:34

P.P.S. Rather than trawling back through all the RNS statements does anyone know offhand the company's intentions with regards to a full listing? At just over £3.50 and with the extra shares to go into issue I make the market cap just over £800m against FTSE 250 auto entry standing at £772m as of the end of January.

(FTSE ranking tab)

[alphabeta4] 14/2/2017 12:14

Me too - at £3.43 at the open (had a busy morning on other shares but I won't go off topic!) FWIW I see at £3.37 was a decent amount off the high and the placing has been conducted at virtually no discount suggesting institutions are keen to top up at these prices.

Accepting there may be some debate on how to value the business I see it as buying something circa a sixth of the size of the group for only an extra 5.6% shares in issue so that's 10% there and a 'comfortably ahead statement' which I take as running 5%? ahead of forecasts but for only one quarter so around 1.25% plus any rerating on annual expectations.

So I saw that as a minimum of 11-12% to go for short term giving a £3.78 price (based on the previous £3.38 close) or just over £4 if you take into account the previous high and also hopefully some cross selling / growth in the new acquisition.

P.S. Interesting take jg on the previous profit numbers for the acquisition. I personally saw the acquisition as a growing business and hence more of a positive than if the last few years figures had been largely similar. I would hope management have done their homework on whether these are sustainable so I am prepared to give them benefit of the doubt given their track record.

[broadwood] 14/2/2017 09:18

Just bought a few.

[jeffian] 14/2/2017 08:56

Would be nice if they offered a Rights Issue rather than a Placing so shareholders could increase their holdings, although I can understand that a Placing offers security and simplicity. Onwards and upwards (I hope).

[jg88721] 14/2/2017 07:47

not a lot, from a quick look, on their website, but did find this impressive looking client list:

hxxp://www.luz.com/about/client-list/

[insideryou] 18/1/2017 13:59

Nice 10% fall on the back of nothing. Burns was in and out no doubt.

[microscope] 17/1/2017 15:06

Lovely statement from Brode's other interest, LTG this morning, which i mentioned here recently. All time high. They did a deal with RWS recently too. At risk of being filtered... Just sayin' ;)

[martinthebrave] 02/1/2017 19:11

abarclay - 12 threads you have just ramped up AUR on. Kindly desist - filtered

[abarclay] 02/1/2017 18:36

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