SDL beats analysts' forecasts, doubles full-year dividend

SDL beat analysts´ forecasts for the full-year, allowing the company to double its dividend payout.

The language training and content management specialist said sales from continuing operations increased 10% over the year ending on 31 December to reach £264.7m (Numis: £255.0m), thanks in part to a favourable tailwind from FX markets.

On an adjusted and continuing basis, profits before taxes and amortisation improved from £24.2m one year back to £27.0m (Numis: £26.0m), for adjusted earnings per share of 26.58p, up from 21.17 in the year-go period.

Management highlighted what it termed as "strong" cash conversion from operations, which improved from £12.0m to £18.6m.

That saw year-end net cash rise from £12.4m in 2015 to £21.3m at present.

The Board proposed doubling the full-year dividend to 6.2p.

Looking ahead, chairman David Clayton said: "As we continue into the next phase of our journey and execute on our strategic plan, the Board remains confident of another year of profitable growth."

Commenting on the results, Tintin Stormont and Oliver Knoff at N+1 Singer said: "The group has stated a medium-term target of c. 10% organic revenue growth p.a. and mid-to-high profit margins. Delivery of this would result in both estimate upgrades and a further re-rating of the shares. We believe the group has the talent, solutions, customer base and market dynamics in place to execute strongly."