RWS AR 23 Final Single pages - Flipbook - Page 40
Chief Financial O昀케cer's Review
The Group has made signi昀椀cant progress during
2023 with management initiatives to improve
e昀케ciency and maintain pro昀椀tability. The Group has
added to its technology portfolio with the acquisition
of Propylon, managed to maintain strong cash
generation during the period despite a continuing
challenging market environment and initiated its
昀椀rst share repurchase programme. The Group’s
transformation programme sets a strong platform for
further progress in 2024 and beyond.
During 2023 total revenue declined by 2%, adjusted operating pro昀椀t
by 11%, and adjusted pro昀椀t before tax by 11%. Despite the challenging
macroeconomic environment, our key growth levers, such as Linguistic
Validation, eLearning and TrainAI have performed well and we continue
to invest behind these levers to drive future growth. We are also investing
to transform our back o昀케ce e昀케ciency to better leverage scale. We are
encouraged by the ongoing opportunities for e昀케ciency gains through the
use of AI and our cost-reduction programmes which aim to mitigate the
impact of cost in昀氀ation. The Group continued to enhance its portfolio with
the acquisition of Propylon Holdings Limited, whose content management
system is used by governments, standards bodies, legal publishers and
regulated 昀椀rms.
The Group continues to be highly cash generative, with cash generated
from operations of £107.5m during the period, notwithstanding
acquisitions and costs associated with restructuring and integration.
Net cash excluding lease liabilities declined in the period from £71.9m to
£23.6m re昀氀ecting the consideration paid for acquisitions of £31.5m and a
further £19.4m paid for the share repurchase programme.
Re昀氀ecting the macro challenges in the last year and the higher cost of
capital through increasing market interest rates, an impairment charge of
£62.4m has been recognised in the period relating to goodwill in respect
of the Group's Language and Content Technology division.
Candida Davies
40
RWS Holdings plc — Annual Report 2023
STRATEGIC REPORT
