5th Aug 2014 11:10
LONDON (Alliance News) - Software business SDL PLC Tuesday said it swung to profit in the first half, as it begins to reap the benefits of a company restructuring in 2013.
The company, which provides software and service solutions for language-translation purposes including interpretation services, posted pretax profit of GBP3.1 million for the six months ended June 30, compared with a GBP2.3 million loss a year earlier, even though revenue fell to GBP129.1 million from GBP131.0 million.
Maidenhead-based SDL booked a GBP1.3 million one-off cost in the 2013 half, which contributed to its loss in that period.
SDL reorganised the structure of its business in 2013 from a product line-focused model to a customer-centric business model and hired several technology executives during the second half of last year.
It also launched a number of systems to help manage the business more effectively, which it expects to be in full operation by the end of 2014, and it rolled out training and staff realignment programmes in the last quarter of 2013.
SDL Tuesday said the restructure it undertook was essential as it seeks to fully maximise opportunities in the marketplace.
"Our One SDL initiative is essential for us to fully leverage the technologies we have, the customers we serve across the business and the talented people who bring these solutions to reality," the company said.
The software company said a key backbone of the group is the Language Services business, which returned to constant currency growth during the first half, while also improving levels of profitably. However, it warned that an improved performance for the Technology unit will take longer to have an impact on its income statement.
Language services revenue fell to GBP72.9 million from GBP73.4 million, as Technology revenue fell to GBP56.2 million from GBP57.6 million a year earlier.
New language services clients in the period include Rentokil Initial PLC and China Southern Airlines. In addition, new customers who bought the company technology solutions include House of Fraser and Specsavers.
Looking ahead, SDL said with significant sales, marketing and operations restructuring executed, it feels it has the delivery capability which it lacked in the past.
"The significant sales, marketing and operational restructuring that SDL executed in late 2013 has provided the business with the delivery capability it requires for sustainable growth," Chief Executive Mark Lancaster said. "Our first half performance is encouraging and confirms the board's optimism about the future.
The company said it will not pay a dividend for the period. At the previous interim, it paid a 6.1 pence per share.
SDL shares were quoted up 4.6% at 326.50 pence Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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