Operational highlights
Headline revenue growth of 17.6% driven by underlying organic growth and strong Alterian contribution.
Performance across the three segments at constant currency:
o Language Services revenue grew by 12.4%, driven by strong sales and marketing execution.
o Content Management Technologies revenue declined marginally.
o Language Technologies revenue business was flat.
Geographically, headline growth in Asia was particularly strong at 46%, North America was 12%, with Europe (including the UK) increasing by 17%.
Significant new client wins during the year included Barnes & Noble, Husqvarna, KONE, Majestic Wines and Purina.
Net cash of £6.3 million following the £70 million acquisition of Alterian in January 2012.
In addition to the sales and marketing investment announced in November 2012 a further £4 million to £5 million of sales and marketing and R&D will be invested in 2013 to create a more robust platform for future growth.
Final dividend of 6.1 pence per ordinary share, a 5.2% increase over the dividend paid in the previous year reflecting our confidence in the outlook.
Commenting on these results, Mark Lancaster, Executive Chairman and Chief Executive Officer said today:
"Although the underlying organic growth for the group was strong, 2012 was a difficult year for SDL. As a result of under investment in the business in 2011 and 2012 performance has been impacted, particularly in the technology segment. Despite this we remain confident in our outlook for sales in 2013 and, as announced in November 2012, we will make significant discretionary sales, marketing and R&D investments in 2013 to return SDL to strong technology growth. The quantum of the total investment will be £8 million to £9 million. This will enhance technology revenue growth in 2013 but will reduce profits for 2013. These investments will take SDL to a new level, creating a solid platform to deliver significant sustained revenue growth and profitability to 2014 and beyond."
