SDL eyes annual profit shortfall

Translation and communications software firm SDL said full year revenue is expected to be in line with expectations but pre-tax profit for the period is expected to fall short of market forecasts.

The Berkshire based group said revenue for the year ended December 31st 2012 is expected to be in a range of £269.0m to £270.0m compared to £229.0m in 2001 and versus consensus expectations of £270.1m.

Profits before taxation and amortisation of intangible assets for the period are expected to be in the range of £35.0m to £36.0m versus £39.7m the year before and compared with consensus expectations of £36.1m.

The group, whose customers include Hewlett-Packard, Canon, Philips and Microsoft, said net cash in the business at the end of the period was slightly above £6m compared to £70.4m in 2011, reflecting the acquisition of Alterian in January 2012.

Gross cash at the end of the period was just above £28m compared to £70.4m the year before.

Commenting on the announcement, Mark Lancaster said: "2012 saw another year of organic growth and significant strategic progress with the acquisition of Alterian."

CJ