(Alliance News) - RWS Holdings PLC on Tuesday reported a robust first-half performance - with revenue surging after its acquisition of SDL PLC - but said Chief Executive Richard Thompson will stepping down from his role.
Shares in the Buckinghamshire, England-based language support services firm were 1.2% lower in London on Tuesday morning at 636.00 pence each.
Thompson will step down to "pursue other interests" and will be replaced by Ian El-Mokadem.
"Following an extensive external succession process, which identified a number of high-calibre candidates with the necessary blend of skills and expertise to lead an ambitious, international group, the board is pleased to announce that Ian El-Mokadem will become the group's CEO, after commencing employment on July 19," the company explained.
RWS said El-Mokadem has held senior management roles in "large and international services businesses", most recently as CEO of ship management and marine support services firm V Group. He was previously CEO of materials testing and calibration services provider Exova Group. Prior to Exova, he was managing director for UK & Ireland at caterer Compass Group PLC. He also currently sits on the board of outsourcing firm Serco Group PLC.
Turning to its results, RWS recorded pretax profit of GBP24.0 million in the six months to March 31, down 7.0% from GBP25.8 million.
Revenue surged 92% to GBP326.4 million from GBP169.7 million the year before. The revenue growth was attributed to the firm's SDL PLC acquisition in November last year.
RWS Language Services sales jumped 84%, while Regulated Industries sales more than doubled, but IP Services sales slipped 2%. RWS also noted the creation of a new unit: Language & Content Technology, which recorded revenue of GBP48.3 million in the five months to March 31.
Administrative expenses rose to GBP120.8 million from GBP39.6 million.
Chair Andrew Brode said: "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. 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."
RWS has declared an interim dividend of 2.0 pence, up 14% year on year from 1.75p the year before.
"Alongside the successful acquisition RWS has delivered a good performance in the first half of the year despite headwinds including currency movements and the impact of Covid-19, which held back demand from certain customers," Brode continued.
He added: "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."
RWS noted its performance since the first half ended has been "good" and in line with internal expectations.
By Paul McGowan; paulmcgowan@alliancenews.com
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RWS Holdings (RWS)