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SDL shows language skills

Strength in SDL's language services division was offset by a weaker technology performance
August 5, 2015

Mounting global competition has prompted more and more companies to differentiate themselves by offering localised websites and customer service across myriad devices and media channels. That helped SDL (SDL) - which provides social, e-commerce, language and other 'customer experience management' tools to the likes of Canon - post a 38 per cent rise in half-year adjusted operating profit to £9.4m.

IC TIP: Hold at 386p

Strong demand in the Americas and new clients such as Huawei and Mitsubishi Electric drove language services revenue up 4 per cent. Moreover, the division's pre-tax profit margin widened by 5.6 percentage points to a record 21.6 per cent. That reflected tight cost control, including greater use of automated translation technology and low-cost production centres.

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