SDL plc (“SDL”, “the Group” or the “Company”), the global innovator in language translation technology, services and content management, announces its audited results for the year ended 31 December 2016.

       
12 months to 31 December 2016 12 months to 31 December 2015
               

Continuing
£m

Discontinued
£m

Total
£m

Continuing
£m

Discontinued
£m

Total
£m

 
Income Statement
Revenue 264.7 25.2 289.9 240.4 26.5 266.9
 

Adjusted PBTA1

 27.0 (24.5) 2.5 24.2 (3.6) 20.6
 
Profit/(loss) before tax 11.0 (26.8) (15.8) (2.9) (22.3) (25.2)
 
Earnings per ordinary share

basic (pence)

10.18 (32.47) (22.29) (10.17) (27.75) (37.93)
 

Adjusted Earnings per ordinary Share - basic (pence)2

 26.58 (4.20) 22.38 21.17 (5.04) 16.13
 

Financial highlights

  • Revenue from Continuing Operations up 10% at £264.7 million (2015: £240.4 million), including some benefit from foreign exchange tailwinds.
  • Adjusted PBTA for Continuing Operations of £27.0 million (2015: £24.2 million), Total £2.5 million (2015: £20.6 million)
  • One-off items of £13.1 million incurred to implement the new strategy, structure and branding (2015: £39.1 million including impairment charge of £33.3 million)
  • Adjusted Continuing Operations earnings per share of 26.58 pence (2015: 21.17 pence)
  • Strong cash generation from operations of £18.6 million (2015: £12.0m) and year-end net cash increased to £21.3 million (2015: £12.4 million)
  • Proposed full year dividend of 6.2p, double that of 2015
  • As expected, reduced Language Services Adjusted PBTA margin of 11.4% due to planned investments
  • Language Technologies Adjusted PBTA margin up from 2.7% to 9.7% following strong licence sales in the year
  • Significant turnaround in Global Content Technologies with Adjusted PBTA margin up to 7.0% from -9.4% following new licence wins and cost control

Operational highlights

  • Implementation of previously announced new strategy and organisational structure to enhance customer focus, improve agility and pursue key strategic aims
  • Key appointments made to strengthen the Group’s leadership team to complement the existing team, including CEO, Adolfo Hernandez
  • Non-Core business disposals: Campaign complete, Fredhopper scheduled to complete during the week commencing 6 March 2017 and Social Intelligence sale process is ongoing
  • Diversified client base, no single customer accounts for more than 5% of total revenue
  • We secured 60 new enterprise customers with world leading brands
  • Translation Productivity secured over 580 new corporate customers and expanded its presence in over 680 existing corporate accounts
  • Sales into premium sectors progressing well: 8 new Life Sciences clients added

Commenting on the business and the results, Adolfo Hernandez, CEO of SDL, said:

“2016 has been a successful year for SDL both financially and operationally. With a clear plan, revamped processes to improve operational efficiency, and a focus on injecting technology into the organisation, we are working hard to create a more scalable platform and, in turn, help our customers go global faster.

2017 is the year of execution. There is still work to do but with a new go-to-market model in place, the right leadership team, strategy and portfolio of products and services to further develop our market position, the Board remains confident of another year of profitable growth which is reflected in the proposed realignment of our dividend.”

To see the full press release, please visit the investor relations section of our website

About SDL

SDL (LSE:SDL) is the global innovator in language translation technology, services and content management. For more than 20 years, SDL has transformed business results by enabling nuanced digital experiences with customers across the globe so they can create personalised connections anywhere and on any device. Are you in the know? Find out more at SDL.com and follow us on Twitter, LinkedIn and Facebook.

1Adjusted PBTA is profit before tax adjusted for the impact of amortisation and one-off items. One-off items are items that in management’s judgement should be disclosed separately by virtue of their size, nature or incidence to provide a better understanding of the financial performance of the Group.  These items are disclosed in more detail in the Operating and Financial Review and note 4 to the preliminary financial information.

2Adjusted earnings per share is based on the Group’s loss for the year adjusted for the post tax impact of the loss on disposal of the Campaign business, amortisation and one-off items.