SDL’s interim results reflect a cautious but confident operation that is progressing well on a global level, as illustrated by its ability to deliver 20% growth, of which 8% was organic. However, the global figure masks a struggle in Europe due to macro economic conditions, with the result that most growth opportunities are in Asia and the US.
We’ll be speaking to SDL management later, in the meantime here are the numbers for the information management solutions provider for the six months to June 30. Profit before tax was £16.4m (up 9%) on revenue of £133.6m (up 20%). The languages services division was the prime contributor to the 8% organic revenue growth (language services revenue was up 14%), with the Alterian acquisition feeding the 12% inorganic growth figure. The UK operation contributed revenue of £16.3m vs. £9.6m. Growth here was mostly due to Alterian, as prior to the acquisition the vast majority of SDL’s revenue was from outside the UK.
It is still early days but it looks like Alterian is slotting in nicely, with integration ahead of expectations. It contributed £16m revenue during the first half of the year. This is lower than the £17.3 Alterian reported in its last interim results (to the end of September 2011) prior to being acquired (see Alterian: 87th day of 100-day transformation plan). It was on a revenue slide then, the difference now is that its prospects are improved and customers appear to be responding with renewal rates ahead of expectations.