Continuing take-up of Global Information Management supports strong growth across business
 
SDL Maidenhead, UK - 4th August 2009 - SDL plc (“SDL” or “the Group”), a leader in the emerging market for Global Information Management (GIM) solutions, is pleased to announce its unaudited interim results for the six months ended 30th June 2009. 
 
                   Unaudited 6 months         Unaudited 6 months         % Change
                  to 30 June 2009 £'000         to 30 June 2008 £'000

Income Statement:
Revenue                  83,293               76,007               +10%      
Profit before tax and             14,519               11,864               +22%      
amortisation of intangible assets
Profit before tax               11,779               9,148               +29%   
Earnings per ordinary share - basic (pence)      11.41               8.82               +29%      
Adjusted earnings per ordinary share – basic (pence)   14.02   11.55   +21%      
Statement of Financial Position:   
Total equity               154,658               125,452          
Cash and cash equivalents            32,919               15,978                      
Interest bearing loans and borrowings   -      -               (7,156)       
                   
Highlights:
-   Results in line with expectations
-   Headline sales growth of 10%
   o 9% organic growth, 1% increase due to 2008 acquisitions
-   Positive revenue growth from both segments
   o Technology segment grew by 18% (20% currency benefit, 4% increase due to acquisitions, 6% decrease at constant currency)
   o Translation services growth of 6%, (20% currency benefit, 14% decrease at constant currency)
-   Cross leverage improving – integrated selling of SDL Tridion, SDL Trisoft and Language Technology
-   Progress in operating margin development and efficiency gains initiated
-   XyEnterprise acquisition provides another step to true GIM leadership and enterprise content management
-   Careful and measured cost controls in place, but with continued investment into key areas of the business
-   Strong cash generation and net cash position of £32.9m
 
Mark Lancaster, Chairman and Chief Executive of SDL, commented:
 
“I am particularly pleased to be able to report a solid half year of further progress for SDL, against a difficult macro economic climate. We have delivered both revenue and operating profits in the first half which are significantly ahead of the prior year, with positive organic growth in both technology and translation services, albeit aided by favourable currency movements. This continues the track record of a consistent year on year improvement in performance and demonstrates the resilience of our business model. Our cash generation was very strong and the strength of the balance sheet, with £32.9m of net cash and no debt, provides considerable financial flexibility and security.             

“We believe we are starting to see real momentum in the realization of our GIM strategy and it has been particularly rewarding to see the recent acquisitions of Tridion, Idiom and Trisoft all generate very positive momentum in the first half of the year.       

“The acquisition of XyEnterprise, a recognized leader in Component Content Management and Dynamic Publishing solutions, extends the range of solutions available to our clients and is a further strategic step in our end-to-end GIM technology offer.     

“Given the global macro-economic environment, our approach to managing the business will remain measured and appropriately cautious for the rest of 2009; however the resilient performance in the first half provides a sound platform for us to continue to deliver to expectations.     

I remain confident that the business is positioned for continued long-term growth and value creation for our shareholders.”