SDL.L Regulatory News (SDL)

SDL plc

Year-end Trading Update

19 January 2015, Maidenhead, U.K.- SDL plc ("SDL": LSE: SDL), a leader in Customer Experience Management solutions, announces draft unaudited key financial data for the year ended 31 December 2014.

- Profit before taxation and amortisation of intangible assets ("PBTA") for the year is expected to be in the range of £16.0m to £17.0m (2013: £8.2m).

- Revenue is expected to be in the range of £260.0m to £261.0m, up 3% at constant currency (2013: £253.6m at constant currency or £266.1m at reported currency).

- Technology segment new licence bookings had a year of excellent growth, up 15% at constant currency.

- Language Services continues to deliver increased margins with significant earnings growth at gross and net margins. This segment delivered gross margins of 45% (2013: 42%).

- During the year, net cash in the business increased by £14.9m. Net cash at the end of the year was £13.1m (2013: net debt of £1.8m).

Commenting on today's announcement, Mark Lancaster said:

"This has been a remarkable year for SDL. We invested for the long-term back in January 2013 and by the end of 2014 we are seeing not just recovery, but excellent new bookings growth in our technology business and solid contribution in our language services business, delivering good cash conversion for the Group at this relatively early point in the turnaround programme.

We have spent the last 2 years creating the right structure, systems and processes to enable SDL to deliver in the new digital world. This involved tremendous upheaval and disruption essential to achieve our long term goal of exceeding the levels of growth and profitability we achieved in the prior 10 years. There is still investment to do and we will continue to make these investments to deliver long-term growth and profit. I am more comfortable than I have ever been in the structure, process and people we have at SDL. It has been a very hard two years with significant change, and it is a credit to all the staff that have delivered this result."

SDL expects to announce its preliminary results for the year ended 31 December 2014 on 10 March 2015 when further details will be provided.

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