SDL
21/05/2015 09:10
GENERAL
PRICE SENSITIVE
REL: 0910 HRS Solution Dynamics Limited
GENERAL: SDL: UK Expansion Contract
Solution Dynamics (SDL) has previously noted an agreement with a
multinational provider which saw D?jarMail interfaced with that company's
leading software package supplied to a vertical market in the health sector.
The agreement saw the D?jarMail functionality included for rollout
progressively to around 2,500 health practices in Australasia and this
process is ongoing.
D?jarMail allows each practice the option to use a centralised printing and
mailing facility to manage outgoing mail including appointment reminders and
invoices/statements. This results in lower print and mail costs, as well as
simplifying administration for the practice.
SDL has now been advised that the software provider's UK operation also
intends to incorporate D?jarMail and begin rolling it out to around 5,000 UK
practices, replacing an existing solution which has had partial rollout. SDL
has successfully completed initial technology trials, however the Service
Level Agreement (SLA) has yet to be signed. The initial phase of replacing
the existing solution (to around 900 practices) is expected to see an
annualised revenue run rate to SDL of approximately ?2 million although it is
unclear how quickly the ramp up to this level will occur.
Further growth for several years is expected as software incorporating the
D?jarMail functionality is then rolled out across the remainder of the UK
customer practice base although it is uncertain what the final level of
D?jarMail uptake will be as practices can retain the option of internally
printing and mailing. SDL is utilising a print supplier in the UK with whom
it has a long-standing relationship; as a consequence of sub-contracting the
printing, SDL's gross margin will be much lower than usual.
For further information please contact:
John McMahon
Chairman
+61-(0)410-411 806
Nelson Siva
Managing Director
+64-(0)21-415 027
End CA:00264610 For:SDL Type:GENERAL Time:2015-05-21 09:10:39
