Marketing automation group Dotdigital (DOTD) reported a 15 per cent rise in organic sales to £20.1m during the first half, while international organic sales were up more than a third to £6m.
Indeed, despite the launch of GDPR and Brexit uncertainty, revenues for dotdigital’s ‘Engagement Cloud’ platform (previously ‘dotmailer’) for its dominant Europe, Middle East and Africa region climbed by around 10 per cent.
The group also continued to capitalise on its relationships with strategic partners – sales via these channels increased by 43 per cent to £10.3m.
True, it wasn’t all rosy. As flagged before, Comapi – the cloud communications business bought in November 2017 – endured a revenue shortfall in challenging market conditions, with some large retail clients entering administration. Still, this decline was offset by the outperformance of dotdigital’s core business, which has higher margins than Comapi. Thus, adjusted cash profits were ultimately “in line” with management’s expectations at £7.1m, up by a quarter.
House broker finnCap forecasts pre-tax profits of £12.1m and EPS of 3.5p for the year to June 2019 (up from £9.2m and 2.9p in FY2018).
dotdigital (DOTD) | ||||
ORD PRICE: | 91p | MARKET VALUE: | £269m | |
TOUCH: | 89-92p | 12-MONTH HIGH: | 101p | LOW: 70p |
DIVIDEND YIELD: | 0.7% | PE RATIO: | 30 | |
NET ASSET VALUE: | 13p* | NET CASH: | £16.7m |
Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2017 | 18.8 | 4.3 | 1.35 | nil |
2018 | 24.9 | 4.9 | 1.44 | nil |
% change | +33 | +14 | +7 | - |
Ex-div: | na | |||
Payment: | na | |||
*Includes intangible assets of £20.5m, or 7p a share |