SDL has today announced that both FY19 sales and AOP are in line. Further, the company states its y/e net cash position at £26m – this is also in line with N1S forecasts. To remind, FY18 reflects only 5 months‘ contribution by DLS, therefore the majority of FY19’s sales uplift should come from Donnelley, but as well, +4/5% (exp.) organic growth. To this end, today’s update provides evidence of progression – towards management’s stated goal of “high single digit” growth. We flag that the y/y LFL profit performance should strongly exceed the aforementioned 4/5% sales growth - indeed we estimate LFL AOP growth at >10% - driven by GM improvement (in turn due to improved utilisation and process automation) and also cost synergies on DLS. We envisage this current trend of improving organic performance and improving margins will provide enhanced shareholder returns for at least the next 2-3 years. Added to this, cash is building once more, such that we wouldn’t be surprised to see a return to M&A in FY20. We see this as a reassuring update.