SDL PLC 2015 Year-end Trading Update (3751M)

TIDMSDL

RNS Number : 3751M

SDL PLC

20 January 2016

SDL plc

2015 Year-end Trading Update

20 January 2016, Maidenhead, U.K. - SDL plc ("SDL": LSE: SDL), the leader in global content technologies and language services and technologies announces expected revenue and profit for the year ended 31 December 2015.

-- Profit before taxation, amortisation of intangible assets and "one off" costs for the year is expected to be in the range of GBP20.0m to GBP22.0m (2014: GBP16.5m at reported currency).

-- Revenue is expected to be in the range of GBP265m to GBP270m (2014: GBP260.4m at reported currency).

-- The trends in trading across SDL's operations were broadly in-line with the first half of the financial year.

Initial conclusions of operational review by the Board

Following the appointment of David Clayton as Executive Chairman, the Board has undertaken a thorough operational review of the Group's activities.

It is the Company's intention to provide more detail at the time of the Company's preliminary results announcement in March 2016. However, a summary of the conclusions of this review is as follows:

-- Language Services and Language Technologies have always been a core differentiator for SDL. They are businesses in which SDL has market leadership as well as competitive and technological advantage. Both continue to experience good underlying growth, benefitting from secular trends such as the globalisation of brands and trade. Accordingly, the Board has concluded that they be the core focus for investment and management attention in the future.

-- In addition, the Board believes that SDL's Global Content Technologies (GCT), comprising the WCM and documentation products, are complementary to its Language Services and Language Technology products with a strong degree of customer overlap and cross-selling opportunities. SDL has begun re-aligning the cost base of SDL's GCT business in order to bring focus and efficiencies to this segment.

-- The Board has also concluded that certain areas of SDL's technology business are non-core to its future strategy. These are: Social Intelligence, Campaigns and SDL Fredhopper. These are good businesses in their own right, with strong technologies and buoyant end markets but are non-core to our on-going strategy. The Board will now begin a sale process of these non-core businesses.

SDL's preliminary results for the period ended 31 December 2015 will be announced on Tuesday, 15 March 2016.

For further information, please contact:

 
 SDL plc                                     Tel: 01628 410 127 
 David Clayton, Executive Chairman 
  Dominic Lavelle, Chief Financial Officer 
 
 FTI Consulting LLP                          Tel: 020 3727 1000 
 Edward Bridges / Emma Appleton

This information is provided by RNS

The company news service from the London Stock Exchange

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