SDL sounds a fifth profit alert

Translation software group SDL today issued its fifth profits warning in a year.

Shares in the company today tumbled 32.4p, or more than 10%, to 250.8p. They were changing hands at 590p a year ago.

Founder and chief executive Mark Lancaster said: “The expected outcome for the financial year is significantly below what we had hoped and is therefore disappointing.” The group said third-quarter revenues in both its divisions had been below expectations, and that could not be recovered in the final three months.

It now expects profits to be about £8 million, down from £35.5 million last year, against analysts’ already-lowered forecasts of £13 million to £16 million.

Lancaster said: “We remain confident that the strong foundations we are putting in place will drive performance during 2014 and beyond.”