RWS Holdings has recorded a 43% drop in its profit before tax in the year to 30 September, totalling £60.3m.

The technology-enabled language services provider said the figure fell in line with its guidance and reflected the impact of lower top-line revenue, lower gross margins and foreign exchange headwinds.

It stated that it had delivered a significant improvement half-on-half, through decisive overhead cost reduction in H2.

In this period, RWS reported £690.1m in revenue, which is a 4% year-on-year decline. However, 28% of its group revenue came from AI-related products and services, up from 25% in the previous year.

RWS said that its strategy is focused on maximising value creation and complements a high-performance culture. In this period, it has launched its new operating model, which is organised around three strategic segments, Generate, Transform and Protect.

Chief executive officer at RWS, Ben Faes, said the last financial year was "pivotal" for the firm, as it looks to provide "seamless operation for global enterprises".

He added: "Our new strategy is a recalibration of our value proposition. By placing technology at the core, we are now addressing the full AI value chain - exemplified by our acquisition of the IP of Papercup, which fast-tracks our capabilities in AI-generated dubbing and synthetic media.

"Our financial performance in the year reflected the challenges we face as our markets continue to evolve and it also validated our conviction that we can and must lead the shift in our industry. We have responded with decisive action, delivering material cost reductions in the second half and drawing us towards a leaner, faster operating model fit for a technology-led company."

In its outlook, RWS said that its trading in the current financial year has been encouraging, and it has maintained the positive cost control momentum seen in the second half of FY25.

The firm expects to deliver low-single-digit organic constant currency revenue in the current financial year, and anticipates this to accelerate in the medium term.

RWS added that in setting its new strategy, the group continues to evolve its portfolio to ensure that it is prepared for future opportunities, with "greater focus, adding assets or streamlining where necessary to accelerate development".

Faes concluded: "With our proprietary technology and data, specialised expertise, integrated AI lifecycle solutions, and proven track record in transforming mission-critical content, RWS is uniquely positioned to grow on the back of AI advancements as the natural trusted partner for enterprises navigating the AI revolution. As we enter FY26, we do so with a scalable technology stack, a clear strategy and the energy to define the future of global understanding."

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