Profits tumble as RWS refocuses on AI
By Abigail Townsend
Date: Thursday 11 Dec 2025
(Sharecast News) - RWS Holdings posted a slump in profits on Thursday, weighed down by weaker margins and foreign exchange headwinds, as it pivoted to become a pure-play artificial intelligence company.
Revenues at the language services specialist fell 4% to £690.1m, or by 0.7% on an organic constant currency (OCC) basis, in the year to 30 September.
Adjusted pre-tax profits tumbled 43% to £60.4m, largely in line with expectations.
The AIM-listed firm attributed the slide to weaker revenues, lower gross margins and forex headwinds.
The pre-tax loss was £99.7m, against a pre-tax profit of £60.7m a year previously, following a non-cash impairment of £88m.
RWS is refocusing to become a technology-led AI solutions partner for global enterprises.
Ben Faes, who took over as chief executive in January, called it a "pivotal year".
He continued: "We have unified our engineering power under a new chief product and technology officer, and executed our first major brand re-positioning in two decades, to better reflect our proposition today and for the future.
"By placing technology at the core, we are now addressing the full AI value chain.
"Our financial performance in the year reflected the challenges we face as our markets continue to evolve, and it also validated our conviction that we can and must lead the shift in our industry."
Looking to the current year, RWS said trading had so far been "encouraging".
It is currently forecasting OCC revenue growth in the low single digits for 2026, with growth then accelerating over the medium term.
As at 1030 GMT, the shares had put on 4% at 80.32p.
Berenberg, which has a 'buy' rating on the stock, said: "We think the group's new model - which clarifies its value add proposition and use of technology - and easier-to-understand proposition should offer upside from a starting point of just 5.6x 2026 P/E of our updated forecasts."
RWS also announced on Thursday that chair Julie Southern and senior independent director David Clayton had resigned.
Southern, who has held the role for two years, said: "RWS now has an exciting AI-led strategy in place, led by a new technology-focused chief executive and supported by a strengthened board.
"With these firm foundations in place it is a good time to hand over the reins as RWS embarks on its next chapter."
Andrew Brode will become interim chair while the search for her successor is undertaken.
Southern, Clayton and chief financial officer Candida Davies - who announced her resignation in October - will all leave at the end of this year.
Berenberg is RWS's joint broker.
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