2nd Aug 2016 07:51
LONDON (Alliance News) - Content management and language translation company SDL PLC on Tuesday said its pretax profit sunk in the first half of 2016 due to a drag from discontinued operations and subdued sales.
SDL said its pretax profit for the half-year to the end of June was GBP900,000, sharply lower than the GBP6.0 million it made a year prior as it booked GBP5.9 million in impairments from the disposal of non-core operations.
SDL announced plans to offload its non-core operations in January. Following a strategic review, the company said it will focus on its core language services and language technologies units. It will sell its social intelligence, campaigns and SDL Fredhopper divisions.
Stripping out the costs related to the non-core divestments, pretax profit rose to GBP9.5 million from GBP9.3 million.
Revenue in the first half was GBP133.7 million, slightly down from the GBP133.9 million reported a year earlier, as sales marginally slipped in the operations SDL intends on keeping. SDL said it made good progress in its Language Technology and Global Content Technologies units, but its Language Services business was squeezed. Non-core operations, meanwhile, traded slightly ahead of SDL's expectations.
"We are working hard to create a more scalable platform to compete even more effectively as one of the leaders in our industry. SDL has the right strategy in place and I am excited about the opportunity ahead of us. We have started executing our strategic plan and as we enter the second half, we are confident of the outlook for the current financial year and beyond," said Adolfo Hernandez, SDL's chief executive.
Shares in SDL were up 1.7% to 442.47 pence Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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