SDL plc (“SDL” or “the Group”), the world’s leading provider of translation services and technology solutions, is pleased to announce its unaudited preliminary results for the year ended 31 December 2004.

 Highlights:

• Turnover at £62.7m (2003: £64.4m) up 2% at constant exchange rates
• Pre-tax profit ahead of expectations at £5.3m, before amortisation of goodwill and intangibles (2003: £4.1m), an increase of 29%
• Pre-tax profit of £0.5m, after amortisation of goodwill and intangibles (2003: loss £0.8m)
• EBITDA profit up 10% at £6.3m (2003: £5.7m) after software development costs of £2.5m (2003: £2.6m), which are written-off as incurred
• Adjusted diluted earnings per share (before amortisation of goodwill and intangibles of £4.9m) of 6.72p (2003: 5.49p), an increase of 22%
• Basic and diluted loss per share (after amortisation of goodwill and intangibles of £4.9m) of 1.77p (2003: loss 3.30p)
• Net funds of £11.4m (2003: £7.2m)

Commenting on the preliminary results Mark Lancaster, Chairman and Chief Executive of SDL, said:

“Revenue growth has continued, at constant exchange rates, and our marked rise in profitability has been a function of our investment in structure and the application of our translation management software and systems. Our Knowledge-based Translation System (KbTS), launched in 2004, has been well received and achieved some early benefits for SDL and its customers in its application on new business with Case New Holland and Best Western Hotels. Our investment in technology and our global footprint now leave SDL well positioned in what is a growing but competitive market. As a result of the above investment we are able to provide cost effective, high quality localization services to our customers.

In the final quarter of the year we were able to announce that SDL is now a premier supplier to Microsoft, which should provide significant revenues in the current year and thereafter.

We expect to see continuing strategic opportunities to emerge in 2005 as large and medium sized enterprises apply Business Process Outsourcing to their localization requirements. The focus for 2005 is on leveraging the investment made to date in software and infrastructure to drive sales forward, but more importantly profits. We therefore expect to see solid revenue growth and continued growth in profits in the current year.“


For further information please contact:

SDL plc
On 22 February 2005
tel: 020 7831 3113
Thereafter tel: 01628 410 127
Mark Lancaster, Chief Executive

Financial Dynamics
Tel: 020 7831 3113
Edward Bridges/Juliet Clarke