SDL PLC (SDL) - Trading Update
RNS Number : 9615R
26 November 2012
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 £3 million to £4million 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 £2 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 £1 million to £2million.
The Board therefore expects SDL to be able to report revenues of approximately
£270 million to £272 million and profits before tax and amortization of
approximately £36 million to £37 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
£3million to £4 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 £3million to £4 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
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
TSTUVRORUWAAUUA -0- Nov/26/2012 07:00 GMT
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