Globalisation and the flattening world have opened niches for companies such as SDL that sell translation programmes for companies trying to hit the whole world at once.

The small-cap software company, which formed in 1992 and floated in 2000, jumped in early trading after it said its full year pre-tax profit would exceed expectations by about 10%.

SDL shares spiked 18p, or 8.29%, in early light trading to value the company at £147.2 million.

The company, which sells translation software to help companies reach different linguistic markets, said its profit before taxation and amortisation of intangible assets for the year to 31 December would be in the range of £10.5 million to £11 million.

That compares with £7.2 million last year and market consensus of £9.6 million for 2006.

Revenues are expected to be at least £93.5 million against 2005 revenues of £78.5 million and above consensus expectations of £92 million due to technology licence sales and the use of in-house technology to enhance service profit levels.

Mark Lancaster, chairman and chief executive, told Citywire that SDL (SDL) has had another strong year of revenue and profit growth.

‘People continue to buy our products, which is great,’ Lancaster said. ‘But our main problem is that most people don’t know we exist.’