21st Jan 2014 11:02
LONDON (Alliance News) - SDL PLC shares jumped 11% Tuesday after it said that it expects to beat consensus forecasts for its 2013 revenue and profit before taxation, amortisation and one-off costs.
The company expects to post revenue in the range of GBP265.8 million to GBP266.3 million for the 12 months to end-December, beating consensus expectations of GBP262.1 million. Revenues were GBP269.3 million in 2012.
Profit before taxation, amortisation and one-off costs relating to its litigation with Trados and restructuring costs, is expected to be between GBP8 million to GBP8.3 million, down from GBP37 million in the previous year but beating consensus expectations of GBP7.3 million. The company had lowered its own expectations to GBP8 million in October, as its third quarter performance was below expectations.
The Court of Chancery in Delaware ruled in favour of Trados in litigation over an alleged breach of fiduciary duty in the sale of Trados to SDL. The UK company said in October that it expected costs of GBP500,000 from the litigation, but said that there was also a potential reimbursement of funds from the Trados directors of between GBP1 to GBP2 million.
The software and services company said Tuesday that it had undergone significant restructuring during the year, including the hiring of a number of key executives.
"We are confident that, following a year of significant change and investment, SDL is well positioned to drive growth and shareholder value in 2014 and beyond," said Chief Executive Officer Mark Lancaster in a statement.
Shares in SDL were trading up 11% at 376.75 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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