Dotdigital’s (DOTD) organic revenues climbed by 15 per cent to £42.5m during the year to June 2019. Total sales for the marketing automation group were slightly higher. But the latter included the Dynmark and Donky businesses, which came with the acquisition of cloud communications platform Comapi in November 2017, and which – as announced in May – are now being discontinued to allow dotdigital to focus on its core software-as-a-service model.
Meanwhile, the quality of the group’s top line continues to improve – with recurring revenues constituting 86 per cent of the total, up slightly from the previous year. It has also boosted its operations in international markets. Indeed, Europe, the Middle East and Africa saw double-digit sales growth – notwithstanding the ongoing impact of Europe’s data privacy legislation (GDPR), introduced in 2018. Message volume here has moved close to the levels seen before the launch of the new rules.
North America enjoyed organic growth of more than a quarter to $9m (£7m), underpinned by collaborations with the group’s strategic partners and system integrators. The Asia-Pacific region saw the fastest rate of acceleration, from a smaller base – rising by 83 per cent to AU$3.8m (£2m).
House broker FinnCap expects adjusted EPS of 4.2p for the June 2020 year-end, up from 3.9p in FY2019.
| DOTDIGITAL (DOTD) | ||||
| ORD PRICE: | 98p | MARKET VALUE: | £290m | |
| TOUCH: | 96-99p | 12-MONTH HIGH: | 114p | LOW: 72p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 14p* | NET CASH: | £19.3m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 21.4 | 5.20 | 1.60 | 0.36 |
| 2016 | 26.9 | 6.20 | 1.80 | 0.43 |
| 2017 | 32.0 | 8.10 | 2.40 | 0.55 |
| 2018 (restated) | 36.9 | 9.20 | 2.88 | 0.64 |
| 2019 | 42.5 | 8.87 | 2.86 | 0.67 |
| % change | +15 | -4 | -1 | +5 |
| Ex-div: | 13 Jan | |||
| Payment: | 31 Jan | |||
| *Includes intangible assets of £21.4m or 7p a share | ||||
