SDL earnings to come in above analysts' expectations

21st Jan 2019 13:54

(Sharecast News) - In a brief trading update on Monday, software and professional services company SDL said all parts of its business had performed well in the year to the end of December 2018.The group said it expects revenues for the year to come in at between £323m and £325m, while adjusted earnings before interest, tax and amortisation should be in line with expectations at no less than £28.5m, up from £22m the year before.Net cash at 31 December after the $77m acquisition of Donnelley Language Solutions and equity fundraising of £36.2m was £14.4m versus £22.7m in 2017.Chief executive officer Adolfo Hernandez said: "We are very pleased with the financial and strategic progress made in 2018, which has included the roll-out of our business automation platform, investment in our technology platforms and the acquisition of Donnelley Language Solutions, which was completed in July."We look forward to driving further strategic progress, profit growth and shareholder value in 2019."Peel Hunt said the EBITA expectations are marginally ahead of its forecast for £27.6m, while net cash is ahead of its estimates due to strong cash collection towards the end of the year."Both dividends and bonuses are paid in the first half, and we therefore expect a normalisation in cash throughout the year," it said.Meanwhile, Numis said the update was "positive". It has pencilled in £322m in revenues and adjusted EBITA of £27.6m. The broker said SDL's cash performance looked particularly strong versus its forecast of £1.1m.At 1350 GMT, the shares were up 3.4% to 537.40p.