RWS AR 23 Final Single pages - Flipbook - Page 42
Chief Financial O昀케cer's Review (continued)
FINANCE COSTS
EARNINGS PER SHARE AND DIVIDEND
Net 昀椀nance costs were £4.0m (2022: £3.1m), with the
year- on-year increase due primarily to an increase of
£1.2m in interest payable on external debt, re昀氀ecting
higher interest rates and increased borrowings. The
Group has a US$220m Revolving Credit Facility ("RCF")
maturing on 3 August 2026, with an option to extend
maturity to 3 August 2027. This gives us further 昀氀exibility
as we continue to grow the business and seek selective
acquisitions to enhance the Group's capabilities and
geographic reach.
Basic earnings per share for the 昀椀nancial year decreased
from 16.1p to (7.1)p, a decrease of 144%, while adjusted
basic earnings per share decreased from 26.6p to 23.3p,
representing a decrease of 12%, which re昀氀ects the after
tax impact of signi昀椀cant adjusting items this 昀椀nancial
year including the cost reduction and transformation
programmes. The weighted average number of ordinary
shares in issue for basic and adjusted basic earnings
decreased from 389.4m to 388.2m, principally due to the
proportionate impact of the ordinary shares repurchased
through the share repurchase programme.
PROFIT BEFORE TAX
A 昀椀nal dividend for the 昀椀nancial year ended 30 September
2023 of 9.8 pence per share has been proposed,
equivalent to £36.8m, while an interim dividend of 2.4
pence per share, equivalent to £9.3m, was paid during
the 昀椀nancial period. A 昀椀nal dividend for the year ended
30 September 2022 of 9.5 pence per share, equivalent to
£37.0m, was paid in this 昀椀nancial period.
The Group reported a loss before tax of £10.9m (2022:
pro昀椀t of £83.2m), the decline having been driven by
impairment charges, lower revenues and client activity,
together with increases in exceptional charges related
to the Group's cost reduction initiative. These have been
partially o昀昀set by foreign exchange gains of £13.0m
from our Group hedging programme and the release of
management bonuses during the period.
ADJUSTED PROFIT BEFORE TAX
Adjusted pro昀椀t before tax ("Adjusted PBT") is stated
before amortisation and impairment of acquired
intangibles, share-based payment expense, acquisition
costs and exceptional items (see reconciliation on
page 164). The Group uses adjusted results as a key
performance indicator, as the Directors believe that
these provide a more consistent and meaningful
measure of the Group’s underlying performance
across 昀椀nancial periods. The Adjusted PBT of £120.1m
(Adjusted PBT margin: 16.4%) recorded in the period has
decreased from £135.7m (Adjusted PBT margin: 18.1%) in
the prior year.
TAX CHARGE
The Group’s tax charge for the year was £16.8m (2022:
£20.5m). The adjusted tax charge for the period was
£29.6m (2022: £32.1m) representing an e昀昀ective
adjusted tax rate of 24.6% compared with 23.7% in the
prior 昀椀nancial year. The rise in the e昀昀ective rate largely
re昀氀ects the increase in the UK tax rate from 19% to 25%
in April 2023 and to a lesser extent tax rates in overseas
countries which are higher than the UK tax rate.
42
RWS Holdings plc — Annual Report 2023
STRATEGIC REPORT
The proposed total dividend for the year of 12.2 pence
per share represents a 4% increase on the total dividend
relative to the prior 昀椀nancial period of 11.75 pence per
share.
BALANCE SHEET AND WORKING CAPITAL
Net assets at 30 September 2023 decreased by £154.4m
to £987.3m. The main drivers of this decrease was the
impairment of goodwill of £62.4m and decreasing foreign
currency denominated net assets by £60.3m, mainly due
to the weakening US Dollar.
Current assets at 30 September 2023 of £290.2m have
decreased by £35.7m on the prior 昀椀nancial year. This
includes a decrease in trade and other receivables of
£8.2m and in cash and cash equivalents balances of
£25.0m to £76.2m.
Current liabilities have also decreased to £182.6m at 30
September 2023, a decrease of £21.0m, primarily due
to a decrease in trade and other payables balances of
£15.8m. Non-current liabilities have increased by £14.9m,
re昀氀ecting a net increase in loan balances under our RCF
of £23.3m and an increase in provisions of £4.8m, partly
o昀昀set by a decrease in lease liabilities of £11.3m, trade and
other payables of £1.2m and deferred tax of £0.7m.
