SDL plc (“SDL” or “the Group”), the leading provider of Global Information Management (GIM) solutions, announces its unaudited preliminary results for the year ended 31 December 2010.

Operational highlights

• Strong growth in revenue and profit before taxation and amortisation

• Accelerated investment in growth, innovation investment increase of £2.6 million

• New customers include Affinion, Fidelity Investments, Saab, United Airlines, Virgin Money and AstraZeneca 

•  Accelerated adoption of GIM solution set based on rapid commercial development of end-to-end content management offer, strong leverage in Structured Content Technology 

• Four new product launches, two in Structured Content Technology and two in Language Technologies, next generation statistical machine translation platform launched with SDL BeGlobal 

• Two further strategic acquisitions strengthen positioning:

  • Language Weaver in Language Technologies gives SDL leading edge statistical machine translation capability

  • Xopus in Structured Content Management expands technical content creation possibilities to non technical authors

• Business remains strongly cash generative: cash balance of £46.6 million after net cash outflow of £25.9 million on acquisitions. Group has no external debt

• Given confidence in business model, maiden dividend of 5.5 pence per ordinary share has been recommended by the board

Commenting on these results, Mark Lancaster, Executive Chairman said today:

“We are delighted to report a year of strong strategic progress, record revenue and excellent operating profit performance. In the period we saw a steadily improving demand environment for our technology and services. We were particularly pleased with the levels of cross-selling of products and services achieved during the year, delivering broader Global Information Management solutions that address our customers’ strategic needs.”

“We are pleased to report double digit headline revenue growth in each of our operating segments, which bears testament to the resilience of the business to the economic cycle. Headline Group revenue growth comprised acquisition related growth of 4%, a negligible impact due to foreign exchange and constant currency revenue growth of 14%. We finished the year strongly, particularly in our Web Content Management business, where changes in organisational structure built positive momentum. In general, we are confident that the demand pipeline in each operating segment remains robust moving into 2011.”

“Our balance sheet remains a considerable source of competitive advantage and comfort as we have no external debt. At the end of 2010 we had £46.6 million of cash on the balance sheet. Given our confidence in future cash generation and ability to sustain strategic and operational progress the board is recommending a maiden final dividend to the Annual General Meeting of 5.5 pence per ordinary share.” 

“We increased our strategic investments in 2010, accelerating investment in innovation, research and development, and supporting our growth in Asian territories. We introduced several new products to market in 2010: SDL BeGlobal a next generation statistical machine translation technology; SDL Trisoft with enhanced DITA support; SDL Contenta S1000D in the structured content management space; and we launched SDL Global Authoring Management System 2010 in Language Technologies.”

Commenting on current trading, John Hunter, Chief Executive Officer, added:

“Initial trading is positive in 2011 and in the absence of a major economic reverse we are confident that 2011 will be another good growth year for SDL. Economic signs are still variable in some segments but we are seeing a more sustained recovery in demand.”   

“We have made solid progress in integrating the two businesses acquired in 2010, and have strengthened our executive management team. We believe we have a sound platform and the right strategy in place. We have no debt and our cash position gives us solid opportunity to pursue further strategic growth options, both organic and through acquisition, should they arise.”

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