The RWS Holdings plc Board therefore recommends a final dividend of 9.8p per share. Together with the interim dividend of 2.4p per share, this will result in a total dividend of 12.2p for the year, an increase of 4% compared with FY22. Subject to final approval at the AGM, the final dividend will be paid on 23 February to shareholders on the register at 26 January 2024.
Other financial highlights include:
Reported revenue declined by c.2% year-on-year and organic constant currency ("OCC") revenue by c.6%, reflecting reduced client activity in a challenging market environment
As anticipated, OCC revenue decline slowed from c.7% in the first half to c.5% in the second half, with improving trends across their services divisions
Gross margin broadly maintained at 46.3% (FY22: 46.7%), reflecting price recovery of rising costs and efficiency benefits from greater use of LXD, partially offset by some changes in language and client mix
Adjusted profit before tax ("Adjusted PBT") declined 12%, reflecting reduced activity in some end markets, offset by in-year cost savings achieved and the benefits of their foreign exchange hedging programme
Adjusted PBT margin of 16.4%, down from 18.1% in FY22, after investments in growth initiatives and transformation
Macroeconomic challenges and higher cost of capital through increased market interest rates resulted in a non-cash exceptional goodwill impairment charge of £62.4m against our technology division which contributed to a reported loss before tax of £10.9m
Other principal adjusting items, consistent with prior year, included amortisation of acquired intangibles of £38.8m (FY22: £34.4m) and exceptional items relating to restructuring and integration of £22.6m (FY22: £12.5m)
Continued strong underlying cash generation, with 74% cash conversion (lower figure driven primarily by the timing of tax payments and continued investment in R&D and Group transformation programmes)
Net cash of c.£23.6m at 30 September 2023 (FY22: £71.9m), after £46.3m of dividends, £31.5m of acquisition costs, £19.4m of share repurchases and £40.3m of capex
