RWS AR 23 Final Single pages - Flipbook - Page 22
Chief Executive O昀케cer's Review (continued)
IP Services
Successfully managed the impact
of the Unitary Patent and improved sales
e昀昀ectiveness, giving strong foundation
for FY24
The IP Services division represented 14% of Group
revenues in the year (FY22: 14%). Revenues of £104.8m
were 2.2% lower year on year on a reported basis
(FY22: £107.2m) and 4% lower on an organic constant
currency basis. Following the introduction of the Unitary
Patent ("UP") by the European Patent O昀케ce, the division
delivered 2% organic constant currency growth in Q4.
While revenues in FY23 were slightly down on the prior
year, mostly due to the delayed introduction of the UP
until 1 June, this was partially o昀昀set by strong growth in
World昀椀le revenue, particularly in the 昀椀rst half of the year
and a rebounding of Euro昀椀le revenues during Q4.
We were encouraged by strong progress in one of our
declared growth initiatives, penetrating the Patent
Attorneys market, and we anticipate being able to build
on several signi昀椀cant wins in FY24.
Our Japan and China operations delivered mixed results
during FY23, with growth in the latter underpinned by
a number of renewals with large Chinese corporates.
This was o昀昀set by weakness in our Japan operations
stemming from patent grant delays with a major client.
The IP Research division experienced tougher trading
during the year, mostly due to a signi昀椀cant reduction
in work with a key client, however, we saw several new
business wins in the last quarter that we anticipate to
ramp up into FY24.
We strengthened the division's management team and
we have developed a clear roadmap for expansion into
patent maintenance activities. Additionally, investment
has been put into initiating our Leading for Growth
programme, building on our account management
success and appointing regional heads of sales, aimed at
driving consistent sales leadership coaching and metrics
across the division and the acquisition of a number of
global new logo clients.
The division's adjusted operating pro昀椀t 3 was £27.7m
(FY22: £30.1m) on a reported basis, re昀氀ecting the
reduction in top-line revenues together with planned
investments in our business to position us for future
growth, partially o昀昀set by tight cost control.
3 Adjusted operating pro昀椀t is stated before amortisation and impairment of acquired intangibles,
acquisition costs, share-based payments expense and exceptional items. See Note 4
22
RWS Holdings plc — Annual Report 2023
STRATEGIC REPORT
