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Dotdigital moving past GDPR

Europe, Middle East and Africa (EMEA) sales rose by around 10 per cent despite GDPR and Brexit
February 19, 2019

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.

IC TIP: Buy at 91p

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:91pMARKET VALUE:£269m
TOUCH:89-92p12-MONTH HIGH:101pLOW: 70p
DIVIDEND YIELD:0.7%PE RATIO:30
NET ASSET VALUE:13p*NET CASH:£16.7m
Half-year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201718.84.31.35nil
201824.94.91.44nil
% change+33+14+7-
Ex-div:na   
Payment:na   
*Includes intangible assets of £20.5m, or 7p a share