SDL has delayed its results following Financial Conduct Authority guidelines and suspended its guidance for 2020 in the wake of wider market uncertainty during the coronavirus crisis. However, the company noted that its delivery capability for clients has so far not been affected.
It has not seen material change in revenue or pipeline, but has observed signs of "slower decision making". Management therefore anticipates a reduction in constant-currency revenues across its language services and technology businesses.
The company has developed a plan to offset some of the impact of lower sales: it aims to reduce costs by £8m in year compared with budget, through both cost controls and cutting non-essential expenses. Management said in a statement that further action on costs will be taken if necessary.
Net cash at the end of 2019 stood at £26.3m. The company said that it expects an uplift in 2019 revenue and adjusted operating profit, in line with market expectations.
