LONDON (ShareCast) - (Sharecast News) - Shares in tech group RWS dropped by a fifth on Wednesday morning after the company cited "reduced activity" in a number of markets as it missed revenue expectations for the year to 30 September.
The AIM-listed company, which provides tech-enabled language, content and intellectual property services, said in a trading update ahead of its full-year results that annual revenues would be down 2%, which implies a figure of £734m.

Current market expectations for revenue range from £738m to £757m, according to Shore Capital, which placed its rating on the stock under review following Wednesday's update.

Adjusted pre-tax profit, however, is expected to be within the range of analysts' forecasts of £116.5m to £129m.

The stock was down 23% at 184p by 0854 BST.

Chief executive Ian El-Mokadem cited a "challenging macroeconomic environment which has resulted in reduced activity in a number of our end markets".

Nevertheless, he said: "While we have taken action to ensure that our cost base matches current levels of activity, we remain confident that activity levels will recover in due course."

Commenting on the update, Shore Capital analyst Katie Cousins was "disappointed with slow financial progress and macro headwinds". Cousins added: "Given the weaker performance, and despite management cost incentives, we would expect to see a negative impact on FY24F profits too as well as on our outer year growth trajectory."

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