A creditable, if unspectacular, half-year result from RWS Holdings prompted broker Numis to upgrade its recommendation from to buy, while a 10 per cent hike in the dividend provided yet more good news for shareholders. RWS - a provider of specialist patent translation services - continues to make solid progress in its key markets, but global economic trends - particularly the deteriorating situation within the eurozone - makes us more cautious.
Despite facing "ongoing uncertainty in the wider economy" RWS boosted first-half revenues a modest 4 per cent, citing a notable contribution from the company's medical translations business, although this was partially offset by the weak performance of its Berlin operations. However, higher administrative expenses fed through to a modest fall in profits. Comparative first-half earnings were also slightly skewed due to the net effects of financing and foreign exchange translations; a net charge of £51,000 was made in the current half-year against a £304,000 credit to earnings in 2011.