Exceptionally strong growth in SDL's North American business has resulted in record sales and profits at the translation and web content management software specialist. Chief executive John Hunter says "we have upped our game in North America" and he expects further growth from the region in 2012.
The company's success in the region was partly down to a more focused sales and marketing effort and the migration of technologies, such as SDL's award-winning web content management product, Tridion, into the region. Sales from North America surged a third to £69.3m and Mr Hunter says that this technology migration has "only just begun".
On a divisional basis, the core language services business, which accounts for 59 per cent of group sales, enjoyed an "exceptional year" for new client wins, which helped drive sales 9 per cent higher to £136m. Meanwhile, the burgeoning web content management business continued to gain traction, with revenues rising 17 per cent to £52.7m. The unit will further benefit from the addition of analytics business Alterian – acquired in January- which will take 12-24 months to fully integrate.
Analysts at Investec expect Alterian to return to profitability in 2013, but have still increased 2012 pre-tax profit forecasts by 3 per cent to £41.9m, giving EPS of 39.3p (from £39.7 and 37.1p in 2011).
SDL (SDL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 689p | MARKET VALUE: | £546m | |
| TOUCH: | 686-689.5p | 12-MONTH HIGH: | 729p | LOW: 586p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 275p* | NET CASH: | £70.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 117 | 12.7 | 13.1 | nil |
| 2008 | 159 | 19.9 | 19.2 | nil |
| 2009 | 172 | 24.0 | 23.6 | nil |
| 2010 | 204 | 28.8 | 28.4 | 5.5 |
| 2011 | 229 | 33.8 | 32.7 | 5.8 |
| % change | +12 | +17 | +15 | +5 |
Ex-div: 16 May Payment: 15 Jun *Includes intangible assets of £155m, or 196p a share | ||||
