6th Aug 2018 11:26
LONDON (Alliance News) - SDL PLC on Monday reported a strong performance in the first half of the year, with increased profit and revenue. SDL expressed confidence for the remainder of 2018 after two years of operational and structural changes "finally begin to show", said Chairman David Clayton.
SDL, which provides language translation and content management services, said pretax profit rose 30% to GBP7.8 million in the six months to June 30 from GBP6.0 million a year before. Year-on-year, revenue rose 2.8% to GBP143.1 million from GBP139.2 million.
SDL said it had seized opportunities to increase its delivery efficiency and improve operating margins. It also sharpened its focus on higher-value premium services content. These changes have positioned the group for growth in the second half, it believes.
Chief Executive Adolfo Hernandez said: "I am pleased to report that SDL has had a good start to the year after the success of underlying operational progress" such as new marketing and innovation strategies and greater cost discipline. I expect these initiatives to continue to bear fruit in the second half of 2018 and beyond."
The group completed the acquisition of Donnelley Language Services for USD77.5 million in July. SDL said the acquisition offers significant opportunity for revenue and cost efficiencies.
Dividends paid in the first half totalled GBP5.1 million, SDL said, the same as those paid in the first half of last year. The dividends paid in 2018 and 2017 amounted to 6.2p per share.
Shares in SDL were up 3.2% at 522.41 pence each.
Related Shares:
SDL.L