SDL PLC - Preliminary results for the year ended 31 December 2008
Strong growth supported by robust repeat revenue streams and further progress in implementing GIM strategy
SDL plc ("SDL" or "the Group"), a leader in the emerging market for Global Information Management (GIM) solutions, is pleased to announce its unaudited preliminary results for the year ended 31 December 2008.
- Results significantly ahead of expectations
o 35% revenue growth (22% in constant currency)
o 24% organic revenue growth
- Good growth across all divisions:
o Technology segment revenue growth of 59%
§ Strong desktop organic growth of 30% year on year
§ Effective integration of Idiom and Trisoft acquisitions
§ Tridion revenue growth of 16%
o Translation Services revenue up 26%
- New customers include:
o EMC, Fair Isaac, Vestas Wind Systems and Sony Europe (SDL Enterprise)
o Microsoft, Citrix Systems, Symantec and Sabre Inc. (SDL Trados)
- As anticipated, Idiom achieved breakeven run rate at the operating margin level by December 2008
- Strong cash flow from operations at £26.4m (2007: £16.0m)
- Net Cash of £31.2m at the end of 2008
- Solid pipeline and conversion rate across technology businesses maintained
Mark Lancaster, Chairman and Chief Executive of SDL, commented:
"It is my pleasure to report that SDL has had another strong year in 2008, with both revenue and operating profits significantly ahead of market expectations.
"With the continued deterioration of the worldwide economic climate, 2009 may well be a challenging year. Our approach will therefore be appropriately cautious. We are however fortunate that approximately 67% of our revenue is derived from translation services and this recurring revenue stream has historically proven to be robust and resistant to economic downturns; in addition we have the benefit of the weak pound at present. We also have a net cash position of a little over £31m in cash, which gives us the flexibility and security desirable in the current environment.
"We are currently maintaining a solid pipeline and conversion rate across our technology business units, although we are seeing some delays in converting deals. We are also continuing to see good momentum in the technology markets we operate in. As we progress through 2009 we expect to see more businesses outsource their translation management, and, due to the group’s leading position in both technology infrastructure and services, this should lead to more business moving to SDL solutions.
"We believe that the long term outlook for the SDL Group will continue to show strong growth as businesses are attracted to the value and efficiencies a Global Information Management Platform provides to global companies."
For further information please contact:
Tel: 01628 410 127
Mark Lancaster, Chief Executive
John Hunter, Finance Director
Tel: 020 7831 3113
Juliet Clarke / Ed Bridges / Helen Thomas