SDL
30/04/2015 13:05
FORECAST
PRICE SENSITIVE
REL: 1305 HRS Solution Dynamics Limited
FORECAST: SDL: FY2015 Guidance Update
Solution Dynamics (SDL) is continuing to see new client wins plus growth from
a range of existing clients. Most of the early costs to expand the company's
digital imaging facility in relation to the Fuji Xerox New Zealand's Document
Management Solutions ("DMS") agreement are likely to be capitalised so this
expansion should have little effect on the current financial year's result.
As a result of the above, SDL now expects a pre-tax profit result in FY2015
in excess of $750,000 which is up from the previous indication of a pre-tax
profit in excess of $700,000. SDL will incur a modest domestic tax liability
for FY2015 but the amount is not yet clear and depends on the relative
utilisation of existing tax losses in the UK and New Zealand.
An update on full financial year trading and the estimated FY2015 profit
result will be provided in late July.
Additionally, SDL is in the process of amending the lease for the company's
Canaveral Drive premises. The lease was due to expire to September 2016. It
has been extended for a further six years with a right to break after four
years. Under the revised terms, SDL is reducing the amount of space it
leases, although not as much as initially envisaged given the requirement to
expand the digital imaging facility for the DMS agreement. The space
reduction, coupled with a move to current market rates, means an annual
saving of approximately $100,000 starting from July 2015.
For further information please contact:
John McMahon
Chairman
+61-(0)410-411 806
Nelson Siva
Managing Director
+64-(0)21-415 027
End CA:00263727 For:SDL Type:FORECAST Time:2015-04-30 13:05:26
