First half highlights
Group revenues £133.9m, up 4%
Group profit before amortisation and tax ("PBTA") £9.3m vs last year of £6.7m, up 39%
Language Services revenue growth of 4%, with net contribution margin up 5.6%
New Language Services clients in the period include Acurian UK, ADAMA, and Akamai Technologies, Huawei and Mitsubishi Electric.
Technology revenue growth of 3%
Technology Annual Recurring Revenue ("ARR") up 1% at constant currency vs December 2014
Technology bookings down 6% at constant currency
Customers who bought our technology solutions during the period include Abbott Laboratories, Canon, DAF Trucks NV, RCM Technologies Inc, Royal Mint and Tetrapak Group.
Introduced key innovations including:
o SDL's Digital Experience Accelerator (DXA), designed to reduce website implementation time from weeks to days, drastically reducing operating costs
o The next generation of machine translation technology - ("XMT"), a core component of the Language pillar within SDL Customer Experience Cloud ("CXC")
Mark Lancaster, Chief Executive Officer, commented:
"The Group has delivered a solid first half performance with strong revenue and profit performance from Language Services, ahead of our expectations. This area of our business continues to see strong momentum with a good outlook.
Within our Technology segment ARR has continued to grow, but new bookings have been disappointing and we have made some proactive changes within the segment. We expect to see growth for the year as a whole, as our pipeline converts and our sales force continues to bed in.
As we enter the second half with a solid pipeline, our expectations for the Group remain unchanged and the Board remains confident in the Company's vision, strategy and ability to deliver shareholder value in the longer term."
