Final Results

RWS Holdings PLC
11 December 2007



For immediate release                                           11 December 2007


                                RWS Holdings plc

             Preliminary results for the year ended 30 September 07

RWS Holdings plc, Europe's leading provider of intellectual property support
services (patent translations and technical searches) and technical
translations, today announced its preliminary results for the year ended 30
September 2007.

Financial Highlights:

Sales and profits at record levels, for the fourth successive year since
flotation in 2003

   • Sales increased by 13.3% to £46.2 million (2006: £40.8m)
   • Profit before tax* rose by 22.3% to £11.1million (2006: £9.0m)
   • Profit before tax* margin improved from 22.1% to 23.9% despite
     unfavourable currency movements
   • Basic earnings per share* were up 25.6% to 21.1p (2006: 16.8p)
   • Proposed final dividend of 6.5p gives a total dividend for the year of
     8.65p (2006: 7.2p)
         o  increased by 20% for the third successive year
   • Continued strong cash generation from operations produced net cash at
     year end of £20.4 million (2006: £15.9m)
   • Very weak yen and dollar partially offset by strong year-end performance
     by the euro

   * before goodwill amortization

Operational Highlights:

Strong performances from all parts of the business

   • Further geographic expansion of patent translation activities including
     in Beijing and the USA
   • Acquisition and successful integration of Japanese Language Services
     Limited into our commercial and technical translation operation
   • Information division grew revenues from its patent database, PatBase, by 70%
   • Further significant client wins
   • Continued improvement in staff productivity


Executive Chairman Andrew Brode commented:

'I am pleased to report another year of strong organic growth driven by
continued momentum in the core patent translation market, new client wins and
increased utilisation from existing clients. In addition, Japanese Language
Services Limited which was acquired in June 2007 is trading ahead of our
expectations.

'With a strong financial position, good forward sales visibility and plans in
place to more than compensate for the potential effects of the London Agreement
by organic expansion and selective acquisitions, we are confident that our
chosen strategy will deliver further growth in 2008 and that the dividend will
continue to advance in line with that growth.'

For further information contact:

RWS Holdings plc
Andrew Brode, Executive Chairman     01753 480200

Smithfield
Katie Hunt                           020 7360 4900

Numis
Stuart Skinner / James Serjeant      020 7260 1000



About RWS:

RWS is Europe's leading provider of intellectual property support services
(patent translations and technical searches) to the medical, pharmaceutical,
chemical, aerospace, defence, automotive, electronics and telecoms industries.
RWS also provides specialist technical, legal and financial translation services
for areas of industry outside the patent arena. RWS is based in the UK, with
offices in Europe, New York, Tokyo and Beijing, and is listed on AIM, the London
Stock Exchange regulated market (RWS.L).

Approximately 1,000,000 patent documents are published per annum, 200,000 of
which are published in Europe (Source: European Patent Office) and the
intellectual property market has shown significant growth in recent years, with
patent applications in Europe having doubled over the last ten years.

For further information please visit: www.rws.com



Executive Chairman's Statement

I am delighted to report another year of strong organic growth from RWS. In its
fourth year as a public company it has delivered new record levels for both
sales and profits.

Business Overview

RWS is Europe's leading provider of intellectual property support services and
high level technical, legal and financial translation services. The core
business - patent translation - is probably the largest of its kind in the
world, translating over 50,000 patents and intellectual property related
documents each year. It serves a multinational blue chip client base drawn from
Europe, North America and Japan. Its clients will be active filers of patents in
the medical, pharmaceutical, chemical, aerospace, defence, automotive,
electronics and telecoms sectors, as well as patent agents with similar clients,
and the leading intellectual property organisations. The Group comprises two
divisions, the Translation division providing patent and document translation,
filing and localisation services in the UK, USA, Europe, Japan and China, and
the Information division, which offers a comprehensive range of patent search,
retrieval and monitoring services as well as a recently developed and extremely
comprehensive patent database service accessible by subscribers, known as
PatBase.

Strategy

The Group's strategy is to grow both organically and by selective acquisitions
in the high level technical translation and intellectual property support
services spaces. Organic growth will flow from leveraging RWS' size and
reputation for specialist quality with both existing clients and new major
corporates in a highly fragmented and largely freelance industry.

Results and Financial Review

Sales and profit for the year established new records. Sales grew by 13.3% to
£46.2 million (2006: £40.8m); profit before tax and goodwill amortization rose
by 22.3% to £11.1 million (2006: £9.0m). The effective tax rate was 23.8% (2006:
27.8%). Basic earnings per share before goodwill amortization advanced by 25.6 %
to 21.1p (2006: 16.8p).

This strong performance was achieved despite unfavourable currency movements and
was attributable to our success in both client acquisition and client retention.
In addition, improved productivity, high margins in our growing patent database,
PatBase, and tight control of translation costs, particularly freelance costs,
delivered a strong improvement in our margins, with profit before tax and
goodwill amortization rising from 22.1% to 23.9% of sales revenues.

The Group's financial base has gone from strength to strength. Shareholders'
funds have advanced to £27.1 million, including net cash of £20.4 million. Free
cash flow increased to £7.5 million and capital expenditure was, as usual,
modest at £224,000. The excellent growth in the overall business required
further working capital of £1.8 million. The acquisition of Japanese Language
Services absorbed a further £1.1 million, but even after tax and dividend
payments net cash advanced by £4.5 million year on year.

Dividend

The Board recommends a final dividend of 6.5p per share, which, together with
the interim payment, will result in a total dividend payout for the year of
8.65p per share, yet again a 20% increase over 2006.

The proposed total dividend is more than twice covered by after tax profits.
Subject to shareholder approval at the Annual General Meeting, the final
dividend will be paid on 22 February 2008 to all shareholders on the register at
25 January 2008.

Acquisitions

Japanese Language Services Limited, which was acquired in June 2007, has been
seamlessly integrated into our Translation division and early results are ahead
of our expectations with complete client retention and good levels of business.
We continue to review acquisition opportunities which will be pursued
selectively where they have demonstrable growth prospects and enhance
shareholder value.

Patent Translation Market

The European Patent Office 2006 annual report confirmed further underlying
growth in patent applications filed, which provides the macro driver for RWS'
continued expansion in its core patent translations activity.

Operating Review

Translations

Patent translations form the core of the Group's business and account for almost
80% of revenues. Client retention and acquisition combined with further growth
in the numbers of patents granted worldwide ensured that our core business
continued to perform ahead of plan. Our largest client regained its leading
position after a temporary shortfall in 2006 and the majority of our larger
customers increased their utilisation of our services. The RWS offering has long
been regarded as a high quality, convenient and cost-effective solution for
those clients with significant patent volumes requiring comprehensive
geographical intellectual property protection.

We have increased our sales effort, especially in the USA where we now employ
three business development managers primarily covering the East and West coasts.
The translation work they obtain is undertaken in the UK, Japan and China.

In Japan, having occupied enhanced office space in 2007, sales advanced in yen
terms but were held back when expressed in sterling. Our Beijing office is now
fully operational and attracting interest from European and North American
corporates.

The commercial and technical translation activities now include Eclipse, which
was acquired in 2005, and Japanese Language Services, which was acquired in
2007, and account for 14% of sales. These activities have achieved excellent
results in a highly competitive environment. We continue to seek to protect our
margins via preferred supplier or approved contractor status, handling larger,
more difficult assignments.

Information

Whilst the Information division only accounts for 7% of group sales, it has
traditionally enjoyed far superior margins to the rest of the business. This
continues to be the case as it attempts to exploit its market leading position
in the provision of patent search, patent watch and document services. Sales of
these services advanced only modestly.

However, this division was responsible for the development of an extremely
comprehensive and searcher-friendly patent database (PatBase). We are exploiting
this subscription-based service in partnership with an intellectual property
software company and it has delivered in excess of 70% growth in 2007, with the
outstanding margins often associated with subscription services.

Principal Risks

The Directors believe that the principal risks to the business would arise from
errors in the provision of the Group's services, in a mismatch between
currencies (i.e. sales are predominantly in euros, whilst costs are mainly
incurred in sterling) and in regulatory changes to patent translation
requirements in Europe.

As regards service provision, RWS has long been ISO-certified and has exhaustive
procedures in place to minimise the risk of error. In addition, the Group
carries comprehensive professional indemnity insurance.

The currency risks can normally be addressed via hedging operations. During the
financial year ended 30 September 2007, we entered into limited euro/sterling
hedging arrangements which have been extended to March 2008. However, the Group
believes the recent strength of the euro will continue and has no immediate
plans for additional hedges.

At the time RWS floated on AIM in November 2003, two regulatory initiatives were
highlighted as potential threats to our patent translation activities. The first
- a European Community Patent - was decisively rejected in 2005. The second -
the London Agreement - has now been ratified by sufficient member states for it
to be implemented in the near future. On 1 October 2007, it was announced that
we anticipated that the London Agreement would come into effect in the Spring of
2008, that it was a voluntary arrangement, and that the estimated reduction in
profit before tax would be of the order of £1 million in the financial year
ending 30 September 2008 and £2 million in a full year. We emphasised that our
core patent translation activities (into English, primarily for use at the US
Patent Office) were unaffected by the London Agreement; the potential loss of
work comprises the into European language translations performed by freelances.

People

RWS is a quintessential 'people' business. The efforts of my Board colleagues
and all of our staff throughout the world have been fundamental to the delivery
of another set of excellent results and the enhancement of our reputation across
our customer base.

Outlook

As has previously been experienced, our markets remain strong in the face of
more challenging economic conditions. We are, therefore, encouraged by our
future prospects which are underpinned by the pressing need for corporates to
protect intellectual property throughout the economic cycle.

With a strong financial position, good forward sales visibility and plans in
place to more than compensate for the potential effects of the London Agreement
by organic expansion and selective acquisitions, we are confident that our
chosen strategy will deliver further growth in 2008 and that the dividend will
continue to advance in line with that growth.


Andrew Brode
Executive Chairman
10 December 2007




Group Profit and Loss Account for the year ended 30 September 2007


                                                            2007          2006
                                              Note         £'000         £'000

Turnover                                           3      46,208        40,779

Cost of sales                                            (26,920)      (24,141)
                                                       -----------    ----------

Gross profit                                              19,288        16,638

Administrative expenses
                                                       -----------    ----------
Amortization of goodwill                                    (635)         (631)
Other                                                     (8,995)       (8,082)
                                                       -----------    ----------
                                                          (9,630)       (8,713)
                                                       -----------    ----------

Profit on ordinary activities before interest              9,658         7,925

Net interest                                                 758           483
                                                       -----------    ----------
Profit on ordinary activities before taxation             10,416         8,408

Taxation                                           4      (2,634)       (2,509)
                                                       -----------    ----------
Profit on ordinary activities after taxation               7,782         5,899

Minority interests                                             -             -
                                                       -----------    ----------
Profit for the financial year                              7,782         5,899
                                                       -----------    ----------

Earnings per 5 pence Ordinary share                6       Pence         Pence
Basic earnings per share                                    19.5          15.2
Diluted earnings per share                                  18.5          14.2

All amounts relate to continuing activities.



Group Statement of Total Recognised Gains and Losses for the year ended 30
September 2007


                                                               2007       2006
                                                              £'000      £'000

Profit attributable to shareholders                           7,782      5,899

Exchange adjustments on retranslation of net assets of
subsidiary undertakings                                          15        (67)
                                                          ----------- ----------
Total recognised gains and losses                             7,797      5,832
                                                          ----------- ----------



Group Balance Sheet at 30 September 2007

                                           Note               2007                 2006
                                                   -------- --------  -------- ----------
                                                    £'000    £'000     £'000      £'000
Fixed assets
Intangible assets                                            6,865                6,418
Tangible assets                                                749                  836
                                                            --------           ----------
                                                             7,614                7,254

Current assets
Debtors                                       7    10,675              8,839
Cash at bank                                       22,144             16,139
                                                 ----------          ---------
                                                   32,819             24,978

Creditors: amounts due within one year        8   (13,310)           (10,993)
                                                 ----------          ---------

Net current assets                                          19,509               13,985
                                                          ----------           ---------
Total assets less current liabilities                       27,123               21,239
                                                          ----------           ---------

Capital and reserves
Called up share capital                    9/10              2,016                1,954
Share premium account                        10              2,992                1,977
Share option reserve                         10              1,556                1,873
Capital reserve                              10                474                  157
Reverse acquisition reserve                  10             (8,483)              (8,483)
Profit and loss account                      10             28,558               23,751
                                                          ----------           ---------
Shareholders' funds                          10             27,113               21,229
Minority interests                                              10                   10
                                                          ----------           ---------
Shareholders' funds and minority interests                  27,123               21,239
                                                          ----------           ---------




Statement of Group Cash Flow for the year ended 30 September 2007


                                                         2007             2006
                                               ------- -------- ------- --------
                                               £'000    £'000   £'000    £'000

Net cash inflow from operating activities               8,858            7,967

Returns on investments and servicing of
finance
Interest received                                752              474
Interest paid                                     (7)              (1)
                                               -------          -------
                                                          745              473

Tax paid                                               (1,859)          (2,485)

Capital expenditure and financial
investment
Purchase of tangible assets                     (250)            (208)
Sale of tangible assets                           26                -
                                               -------          -------
                                                         (224)            (208)
                                                       --------         --------
Free cash flow                                          7,520            5,747

Acquisition
Acquisition of subsidiary undertaking         (1,174)               -
Net cash in subsidiary undertaking acquired       44                -
                                               -------          -------
                                                       (1,130)               -

Equity dividends paid                                  (2,990)          (2,395)

Financing
Issue of ordinary shares                                1,077              631

                                                       --------         --------
Increase in cash                                        4,477            3,983
                                                       --------         --------



Notes to the Group Cash Flow Statement


Reconciliation of operating profit to net cash flow from
operating activities                                           2007       2006
                                                              £'000      £'000

Group operating profit                                        9,658      7,925
Depreciation and amortization                                   951        938
Profit on sale of tangible assets                                (5)         -
Debtors increase                                             (1,756)    (1,484)
Creditors increase                                                -        653
Other non-cash movements                                         10        (65)
                                                            --------   ---------
Net cash inflow from operating activities                     8,858      7,967
                                                            --------   ---------

Reconciliation of net cash flow to movement in net funds       2007       2006
                                                              £'000      £'000

Increase in cash in the year                                  4,477      3,983
Net funds at beginning of the year                           15,912     11,929
                                                            --------   ---------
Net funds at end of the year                                 20,389     15,912
                                                            --------   ---------



Analysis of net funds            At 1 Oct              Cash         At 30 Sept
                                     2006              flow               2007
                                    £'000             £'000              £'000

Cash                               16,139             6,005             22,144
Overdrafts                           (227)           (1,528)            (1,755)
                                  ---------       -----------         ----------
                                   15,912             4,477             20,389
                                  ---------       -----------         ----------


Notes

1 Basis of preparation

The results have been prepared using accounting policies consistent with those
used in the preparation of the statutory accounts. The financial information is
derived from the Group financial statements for the years ended 30 September
2007 and 2006, and does not constitute full accounts within the meaning of
Section 240 of the Companies Act 1985. Statutory accounts for 2006 have been
delivered to the Registrar of Companies and those for 2007 will be delivered in
due course and posted to shareholders in January. The auditors have reported on
those accounts; their reports were unqualified and did not contain statements
under Section 237 (2) or (3) of the Companies Act 1985. Copies of this
announcement are available at the registered office of the Company, 8 Baker
Street, London W1U 3LL and at the offices of the Company's nominated advisers,
Numis Securities Limited, London Stock Exchange Building, 10 Paternoster Square,
London EC4M 7LT and its public relations advisers, Smithfield Consultants
Limited, 10 Aldersgate Street, London EC1A 4HJ for a period of 14 days from the
date hereof.

On 11 November 2003, RWS Holdings plc became the legal parent company of Bybrook
Limited and its subsidiary undertakings. The substance of the combination was
that Bybrook Limited acquired RWS Holdings plc in a reverse acquisition.

The Directors have adopted reverse acquisition accounting as a basis of
consolidation in order to give a true and fair view of the substance of the
combined entity. In invoking the true and fair override, the Directors note that
reverse acquisition accounting is endorsed by International Financial Reporting
Standard 3 and that the Urgent Issues Task Force of the UK's Accounting
Standards Board considered the subject and concluded that there are instances
where it is right and proper to invoke the true and fair override in such a way.

Goodwill arose on the difference between the fair value of the legal parent's
share capital and fair value of its net liabilities at the reverse acquisition
date. This goodwill was written-off in the year ended 30 September 2004, because
the goodwill had no intrinsic value.

Other goodwill arising on consolidation and purchased goodwill are capitalised
and amortized through the Profit and Loss Account over the Directors' estimate
of its useful economic life that does not exceed 20 years.

2 Accounting policies

The Group's main accounting policies under UK GAAP are unchanged from the
previous year apart from the adoption of certain new Financial Reporting
Standards (FRS).

Changes in accounting policies

The adoption of FRS 20 'Share-based payment' has had no impact on the financial
statements.

Turnover

Turnover represents sales to outside customers at invoiced amounts less value
added tax. Revenue, other than subscription revenue, is recognised as a
translation, filing or search is fulfilled in accordance with agreed client
instructions. Subscription revenue is recognised on a straight line basis over
the term during which the service is provided.

Accrued income represents amounts not invoiced for work that has been performed.

For the financial year ended 30 September 2006 in accordance with UITF 40
'Revenue recognition and service contracts', services for translations and
filing were not accounted for as long tem contracts as the impact of activity
falling into different accounting periods was considered not to be material to
the financial statements.

For the financial year ended 30 September 2007, work in progress reported in the
previous financial year has been reclassified as accrued income to be consistent
with the current year in accordance with FRS 28 'Corresponding Amounts'. The
corresponding amounts for the profit and loss account have not been adjusted as
the effects are considered not to be significant.

Intangible assets

On acquisition of a business, fair values are attributed to the net assets
acquired. Goodwill arises where the fair value of the consideration given for a
business exceeds the fair value of such net assets. Goodwill arising on
acquisitions is capitalised and amortized through the Profit and Loss Account
over the Directors' estimate of its useful economic life (ranging between 8 and
20 years). Goodwill is reviewed for impairment when there are indications that
the carrying value may not be recoverable.

Other purchased goodwill is capitalised and amortized through the Profit and
Loss Account over the Directors' estimate of the useful economic life. The
economic life for each asset within this category is considered individually and
ranges between 8 and 20 years.

3 Segment information
                                                           2007           2006
                                                          £'000          £'000
Turnover by class of business
Translation and localization services                    43,121         38,032
Information services                                      3,087          2,747
                                                        ---------      ---------
                                                         46,208         40,779
                                                        ---------      ---------

The tables below show information by geographic area and, for turnover and
assets, material countries.

Turnover by geographic location of Group undertakings
United Kingdom                                                42,010    36,673
Continental Europe                                               817       616
Japan                                                          3,190     3,304
United States of America                                         191       186
                                                             --------- ---------
                                                              46,208    40,779
                                                             --------- ---------

Turnover by geographic market in which customers are
located
United Kingdom                                                 7,123     5,676
Continental Europe
Germany                                                       15,349    14,296
France                                                         4,828     4,812
Other                                                         10,105     8,228
                                                             --------- ---------
                                                              30,282    27,336
Japan                                                          2,408     2,470
United States of America                                       6,076     5,061
Other                                                            319       236
                                                             --------- ---------
                                                              46,208    40,779
                                                             --------- ---------

Total assets by location of Group undertakings
UK                                                            38,796    30,476
Others                                                         1,637     1,756
                                                             --------- ---------
                                                              40,433    32,232
                                                             --------- ---------

Net assets by location of Group undertakings
UK                                                            25,924    19,898
Others                                                         1,199     1,341
                                                             --------- ---------
Net assets                                                    27,123    21,239
                                                             --------- ---------


Profit before taxation by business sector and location of Group undertakings
In the opinion of the Directors, disclosure would be seriously prejudicial to
the interests of the Group.

4 Taxation                                                 2007           2006
                                                          £'000          £'000
Analysis of tax charge:
Corporation tax                                           2,437          2,403
Adjustments in respect of prior years                       (69)          (154)
Overseas taxation                                           266            260
                                                        ---------      ---------
Total current tax charge                                  2,634          2,509
                                                        ---------      ---------

The Group has estimated capital losses of £20 million available for offset
against the capital gain arising on the redemption of loan notes in the year
ended 30 September 2004. As the quantum of the capital losses has not been
agreed the offset of the capital losses has not been recognised in the current
tax charge and no deferred tax asset recognised.


5 Dividends                                                      2007     2006
                                                                £'000    £'000
On each 5 pence Ordinary share
Final proposed 2005 (paid 16 February 2006) - 4.35 pence per
share                                                               -    1,672
Interim, paid on 14 July 2006 - 1.85 pence per share                -      723
Final proposed 2006 (paid 16 February 2007) - 5.35 pence per
share                                                           2,123        -
Interim, paid on 13 July 2007 - 2.15 pence per share              867        -
                                                              ---------  -------
                                                                2,990    2,395
                                                              ---------  -------

Final dividend proposed for the year of 6.50 pence per share
(2006: 5.35 pence)                                              2,621    2,091
                                                              ---------  -------

The proposed final dividend has not been accrued as it was declared after the
balance sheet date. The final proposed dividend will reduce shareholders' funds
by an estimated £2.6 million.

6 Earnings per Ordinary share

                                         2007                             2006
                          -------     ---------       ---------      -----------
                       Earnings           EPS         Earnings             EPS
Basic                     £'000         Pence            £'000           Pence

Basic earnings            7,782          19.5           5,899             15.2
Goodwill amortization       635           1.6             631              1.6
                         --------     ---------       ---------      -----------
Adjusted earnings         8,417          21.1           6,530             16.8
                         --------     ---------       ---------      -----------

Diluted

Basic earnings            7,782          18.5           5,899             14.2
Goodwill amortization       635           1.6             631              1.6
                         --------     ---------       ---------      -----------
Adjusted earnings         8,417          20.1           6,530             15.8
                         --------     ---------       ---------      -----------

No significant tax effect arose from the adjustment for goodwill in either the
current or prior year.



Diluted earnings per share are based on the group profit for the year and a
weighted average of Ordinary shares in issue during the year calculated as
follows:

                                          Number of shares    Number of shares

In issue                                       39,883,725           38,763,414
Dilutive potential Ordinary shares
arising from unexercised share options          2,108,859            2,863,444
                                              ------------         ------------
                                               41,992,584           41,626,858
                                              ------------         ------------

At 30 September 2007 there were unexercised options over a total of 1,996,533
(2006: 3,234,472) Ordinary shares.

7 Debtors: include accrued income of £1,562,000 and the prior year includes an
amount of £1,240,000 reclassified from work in progress as explained within Note
2.

8 Creditors: amounts due within one year include corporation tax of £6,308,000
(2006: £5,533,000). The taxation amount includes £4,434,000 being the liability
on the gain arising on the redemption of loan notes in the year ended 30
September 2004.

9 Share capital
                                                               2007       2006
                                                              £'000      £'000
Authorised
100,000,000 Ordinary shares of 5 pence                        5,000      5,000
                                                          ----------- ----------

Allotted, called up and fully paid
40,319,435 Ordinary shares of 5 pence (2006: 39,081,496)      2,016      1,954
                                                          ----------- ----------

During the year, as a result of options exercised, 1,237,939 Ordinary shares of
5 pence each were issued for a cash consideration of £1,076,755.


10 Shareholders' funds and movements on reserves

                                 Share              Profit and   
                     Share     premium      Other         loss    Shareholders'
                   capital     account   reserves      account           funds
                     £'000       £'000      £'000        £'000           £'000

At beginning
of year              1,954       1,977     (6,453)      23,751          21,229
Issue of share
capital in
respect of
share options           62       1,015          -            -           1,077
Dividends                -           -          -       (2,990)         (2,990)
Profit
retained for
the financial
year                     -           -          -        7,782           7,782
Exchange
movements                -           -          -           15              15
                    --------    --------    -------     --------      ----------
At end of year       2,016       2,992     (6,453)      28,558          27,113
                    --------    --------    -------     --------      ----------

                   Reverse       Share                   Total
               acquisition      option    Capital        other
                   reserve     reserve    reserve     reserves
                     £'000       £'000      £'000        £'000
Other
reserves
At beginning
of year             (8,483)      1,873        157       (6,453)
Issue of share
capital in
respect of
share options            -        (317)       317            -
                    --------    --------    -------     --------
At end of year      (8,483)      1,556        474       (6,453)
                    --------    --------    -------     --------



11 Reconciliation of movements on shareholders' funds        2007         2006
                                                            £'000        £'000

Profit for the financial year                               7,782        5,899
Dividends paid (note 5)                                    (2,990)      (2,395)
                                                          ---------   ----------
Net additions to shareholders' funds                        4,792        3,504
                                                          ---------   ----------

Opening shareholders' funds                                21,229       17,161
Additions to shareholders' funds                            4,792        3,504
Issue of share capital in respect of share options          1,077          631
Exchange adjustment on consolidation                           15          (67)
                                                          ---------   ----------
Shareholders' funds at end of year                         27,113       21,229
                                                          ---------   ----------


12 Acquisition

On 8 June 2007, the Group acquired the whole of the issued share capital of
Japanese Language Services Limited for a cash consideration of £1,174,000.

In calculating the goodwill arising on acquisition, there were no adjustments
from book value in determining the fair value of net assets acquired.

                                                                    Book value
                                                                and fair value
                                                                         £'000
Current assets:
Debtors                                                                     66
Cash at bank                                                                44
                                                                      ----------
Total assets                                                               110
Creditors: amounts due within one year                                     (18)
                                                                      ----------
Net assets                                                                  92
                                                                      ----------

Cash consideration (including expenses of £31,845)                       1,174
Net assets acquired                                                         92
                                                                      ----------
Goodwill arising on consolidation                                        1,082
                                                                      ----------

The net outflow of cash arising from the acquisition of Japanese Language
Services Limited was as follows:

                                                                    Cash flows
                                                                         £'000
Cash consideration (including expenses of £31,845)                       1,174
Cash acquired                                                               44
                                                                      ----------
Net outflow of cash                                                      1,130
                                                                      ----------


13 Post balance sheet events

There have been no events since 30 September 2007 that require disclosure.



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