SDL PLC Trading Update (9615R)
November 26 2012 - 2:00AM
UK Regulatory
TIDMSDL
RNS Number : 9615R
SDL PLC
26 November 2012
SDL plc
Trading update
26 November 2012 - Maidenhead, UK - SDL plc, a leader in the
emerging market for Global Information Management ("GIM")
solutions, announces that it expects a profits shortfall of between
GBP3 million to GBP4million against current market expectations for
the financial year ending Dec 31 2012.
Following a review of the business conducted by Mark Lancaster,
recently appointed CEO, the Board has concluded that
-- SDL will take a more cautious view of
percentage-of-completion and cost-to-complete of certain services
contracts in the second half of the financial year. This will
result in a profit shortfall in the current financial year of
approximately GBP2 million in the language services division.
-- Management forecasts for the year are now considered to be
too optimistic against market expectations. Poor sales and
marketing execution, coupled with the unstable macro economic
environment is expected to result in a further shortfall of GBP1
million to GBP2million.
The Board therefore expects SDL to be able to report revenues of
approximately GBP270 million to GBP272 million and profits before
tax and amortization of approximately GBP36 million to GBP37
million for the year end 31 December 2012.
Mark Lancaster, Chief Executive Officer, commented:
"Having stepped back into the role of CEO a month ago, I have,
alongside our CFO Matthew Knight, undertaken a review of the
business and the revenue and profit forecasts. The financial effect
is to reduce our profit by about GBP3million to GBP4 million in the
current year."
He went on to say
"Despite the short term shortfalls in the business, I feel more
confident in SDL's technology stack and service solutions than I
have ever been. I believe we have a unique combination of
technology. In 2013 we will make additional investments in sales
and marketing to drive long term growth. We expect this additional
investment to be between GBP3million to GBP4 million in 2013.
As we look further forward to 2014 and beyond, we expect to see
sustained growth in our technology revenues and improved profit
contribution."
For further information please contact:
SDL plc Tel: +44 (0)1628 410 127
Mark Lancaster, Chief Executive Officer
Matthew Knight, Chief Financial Officer
FTI Consulting Tel: + 44 (0)20 7831 3113
Edward Bridges/Jon Snowball/Emma Appleton
About SDL
SDL enables global businesses to engage with their customers in
the language, the media and at the moment they choose. We help
businesses manage their brands, drive global revenues, accelerate
speed to market and enrich their customers' experience. SDL's
enterprise-ready innovative technology and service solutions span
the entire customer journey and include social listening and
marketing analytics, campaign management, language management and
services, video and written content creation, web content
management, dynamic technical documentation publication and
eCommerce. SDL solutions drive global reach across multiple
languages, cultures, channels and media. SDL has over 1,500
enterprise customers, 400 partners and a global infrastructure of
70 offices in 38 countries. For more information, visit
www.sdl.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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