Half Year results for the six months ended 30 June 2018

Delivering our transformation

Half Year

Financial highlights from Continuing Operations 

  • Revenue up 2.8% to £143.1m (H1 17: £139.2m), constant currency revenue growth6 of 6.0% 
  • Group Gross profit margin improved to 52.9% (H1 17: 50.5%) 
  • Adjusted EBITA grew 45% to £12.0m (H1 17: £8.3m), inclusive of £2.8m (net) capitalised research and development expenditure (H1 17: £nil) 
  • Profit before tax increased 30% to £7.8m (H1 17: £6.0m) 
  • Basic earnings per ordinary share up 42% to 6.8p (H1 17: 4.8p) 
  • Adjusted diluted earnings per share grew 54% to 10.8p (H1 17: 7.0p) 

Operational highlights 

  • Good progress against our transformation plan and stated strategic objectives 
  • Sharpened focus on higher value premium services content has positioned the Group for H2 growth 
  • Helix programme showing ongoing momentum and delivering benefits – on track with business case 
  • Investment in new products delivering largest ever pre-sales orders for our updated product - Studio 2019 launched last month 

Subsequent events 

  • The Group completed the acquisition of Donnelley Language Services for $77.5m on 22 July 2018. This acquisition gives SDL greater exposure to the premium growth verticals and creates significant opportunity for revenue and cost efficiencies. The acquisition is expected to be earnings accretive in 2019   

Adolfo Hernandez, SDL Chief Executive, said: 

“I am pleased to report that SDL has had a good start to the year. Importantly, we have been able to balance underlying operational progress, on-boarding customers onto our Helix platform, the evolution of our go-to-market strategy and investment in innovation with good financial results showing revenue growth, gross margin expansion and cost discipline. I expect these initiatives to continue to bear fruit in the second half of 2018 and beyond. Furthermore, the acquisition of Donnelley Language Solutions accelerates parts of our premium services strategy and provides the opportunity to apply the same operational improvement initiatives to the acquired business over time. The outlook for the full year is in line with management expectations.” 

For further information please contact: 

SDL plc - 01628 410100
Adolfo Hernandez, CEO
Xenia Walters, CFO 

FTI Consulting LLP - 0203 727 1000
Edward Bridges
Darius Alexander
Kwaku Aning

About SDL

SDL (LSE: SDL) is the global leader in content creation, translation and delivery. For over 25 years we’ve helped companies communicate with confidence and deliver transformative business results by enabling powerful experiences that engage customers across multiple touchpoints worldwide. 

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