6th Aug 2019 09:54
(Alliance News) - SDL PLC on Tuesday expressed confidence for the reminder of 2019 after reporting double-digit revenue and profit growth in the first half.
SDL shares were trading 12% higher on Tuesday in London at 492.89 pence each.
The language translation technology firm reported 40% growth in pretax profit for the six months to the end of June to GBP10.9 million, compared to GBP7.8 million a year ago, as revenue jumped by 28% to GBP182.5 million from GBP143.1 million.
"We are pleased to have delivered a good start to the year, which resulted in a 14% increase in adjusted diluted earnings per share over the prior year, benefiting from the acquisition of Donnelley Language Solutions and strong growth in key areas such as premium services and machine translation," explained Chief Executive Adolfo Hernandez.
The company has completed the acquisition of Donnelley Language Solutions in July last year, which resulted in 40% revenue increase in SDL's Language Services segment over the first half.
Turning to the Language Technologies division, revenue in this unit grew by 7% in the first half, helped by improved sales of SDL Machine Translation.
In the Content Technologies segment, revenue grew by 4%, including a strong performance by Contenta Publishing Suite, an integrated publishing solution for technical content.
Looking ahead, SDL said it entered the second half, its traditionally stronger period, with good sales momentum and a healthy sales pipeline.
SDL also noted that the sterling to US dollar exchange rate also is benefiting the company and will continue to have a favourable impact on revenue and profit if current rates are maintained through the second half of this year.
"This, alongside the actions that we are taking on productivity, gives us confidence of delivering improved profitability for the full year, in line with management expectations," said Hernandez.
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