SDL PLC Trading Update (6770B)

TIDMSDL

RNS Number : 6770B

SDL PLC

12 January 2018

SDL plc

Trading Update

12 January 2018, Maidenhead, U.K. - SDL plc ("SDL" or "the Group"), a leader in global content management and language translation software and services, is providing a further update on the trading performance for the year ending 31 December 2017, based on unaudited results.

SDL expects to deliver Adjusted EBITA(1) for 2017 of approximately GBP22 million, after R&D capitalisation of c.GBP2.5 million. Group revenue is expected to be approximately GBP285 million, with growth of c.8% over the prior year. As previously disclosed, exceptional costs in 2017 will be approximately GBP3.5m, primarily related to restructuring charges. Net cash was in excess of GBP22 million at 31 December 2017.

In its December trading update, SDL advised that certain software deals may not close by 31 December 2017 and this occurred in a number of cases. The Group continues to work with customers to sign these deals. Also as previously disclosed, SDL experienced a faster, market-driven shift to Software-as-a-Service (SaaS) sales in 2017 which impacted Group revenues by approximately GBP1 million to GBP2 million.

The Group can also confirm that gross margins in the Language Services division improved in the second half of 2017.

SDL will report its full year 2017 results on Tuesday 6 March 2018.

(1) Adjusted EBITA = Earnings Before Interest, Tax and Amortisation of Acquired Intangibles and Exceptional Items (Continuing Business)

For further information please contact:

 
 SDL plc                    01628 410100 
 Adolfo Hernandez, CEO 
  Xenia Walters, Interim 
  CFO 
 
 FTI Consulting LLP         0203 727 1000 
 Ed Bridges / Emma Hall

About SDL

SDL (LSE:SDL) is the global innovator in language translation technology, services and content management. Over the past 25 years we've helped companies deliver transformative business results by enabling powerful, nuanced digital experiences with customers around the world. Are you in the know? Find out why 78 out of the top 100 global brands work with us at SDL.com and follow us on Twitter, LinkedIn and Facebook.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 12, 2018 02:00 ET (07:00 GMT)

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