REG - dotDigital Group plc - Final Results <Origin Href="QuoteRef">DOTD.L</Origin> - Part 2
17/10/2017 07:06
- Part 2: For the preceding part double click ID:nRSQ7527Ta
market assessments of the time value of money and the risks specific to the asset or CGU. For the
purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or
CGU.
- Domain names
Acquired domain names are shown at historical cost. Domain names have a finite life and are carried at cost less
accumulated amortisation. Amortisation is calculated using straight-line method to allocate the cost of domain names over
their useful lives of four years.
- Software
Acquired software and websites are shown at historical cost. They have a finite life and are carried at cost less
accumulated amortisation. Amortisation is calculated using straight-line method to allocate the cost of software and
websites over their useful lives of four years.
- Product development
Product development expenditure is capitalised when it is considered that there is a commercially and technically viable
product, the related expenditure is separately identifiable and there is a reasonable expectation that the related
expenditure will be exceeded by future revenues. Following initial recognition, product developments are carried at cost
less any accumulated amortisation and any accumulated impairment losses. The useful lives of these intangible assets are
assessed to have a finite life of five years. Amortisation is charged on assets with finite lives, and until economic
benefit can be received and recognised, this expense is taken to the income statement and useful lives are reviewed on an
annual basis. Amortisation is charged from the point when the asset is available for use.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs
previously recognised as an expense are not recognised as an asset in a subsequent period. Capitalised development costs
are recorded as intangible assets and amortised from the point at which they are ready for use on a straight-line basis
over their useful life.
Costs incurred on development projects (relating to the design and testing of new or improved products) are recognised as
intangible assets when the following criteria are fulfilled:
- It is technically feasible to complete the intangible asset so that it will be available for use or resale;
- Management intends to complete the intangible asset and use or sell it;
- There is an ability to use or sell the intangible assets;
- It can be demonstrated how the intangible asset will generate possible future economic benefits;
- Adequate technical, financial and other resource to complete the development and to use or sell the intangible asset are
available; and
- The expenditure attributable to the intangible asset during its development can be reliably measured.
Impairment of non-financial assets (excluding goodwill)
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the
asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of
the cash generating unit to which the asset belongs. An intangible asset with an indefinite useful life is tested for
impairment annually and whenever there is an indication that the asset may be impaired.
Property, plant and equipment
Tangible non-current assets are stated at historical cost less accumulated depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits are associated with the item will flow to the company and the cost of the item
can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are
charged to the income statement during the financial period in which they are incurred. Depreciation is provided at the
following rates in order to write off each asset over its estimated useful life and is based on the cost of assets less
residual value. Significant components of individual assets are assessed and if a component has a useful life that is
different from the remainder of that asset, that component is depreciated separately.
Short leasehold: over the term of the lease
Fixtures and fittings: 25% on cost
Computer equipment: 25% on cost
The assets' residual values and useful economic lives are reviewed and adjusted, if appropriate, at each reporting date. An
asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater
than its estimated recoverable value.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within
other (losses) or gains in the income statement.
Capital risk management
The Group manages its capital to ensure it is able to continue as a going concern while maximising the return to
stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of cash
equivalents and equity attributable to the owners of the parent as disclosed in the statement of changes in equity.
Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the income statement, to the extent
that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.
Current tax
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules,
using tax rates enacted or substantially enacted by the balance sheet date.
Deferred taxation
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary difference will be utilised.
Deferred income tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income asset is realised or deferred income tax liability is settled.
Operating leases
Rent payable under operating leases is not recognised in the Group's statement of financial position. Such costs are
expensed on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part
of the total expense, over the term of the lease.
Financial instruments
Financial assets and financial liabilities are recognised on the statement of financial position when an entity becomes a
party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at
fair value through profit or loss are recognised immediately in the income statement.
- Financial assets
The Group's accounting policies for financial assets are set out below.
Management determine the classification of its financial assets at initial recognition depending on the purpose for which
the financial assets were acquired and, where allowed and appropriate, revaluate this designation at every reporting date.
All financial assets are recognised on a trade date when, and only when, the Group becomes a party to the contractual
provisions of an instrument. When financial assets are recognised initially, they are measured at fair value plus
transaction costs, except for those finance assets classified as at fair value through profit or loss ('FVTPL'), which are
initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets at FVTPL, 'held-to-maturity'
investments, 'available for sale' (AFS) financial assets and loans and receivables. The classification depends on the
nature and purpose of the financial assets and is determined at the time of recognition.
Derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or are
transferred and substantially all of the risks and rewards of ownership have been transferred.
At each reporting date, financial assets are reviewed to assess whether there is objective evidence of impairment. If any
such evidence exists, impairment loss is determined and recognised based on the classification of the financial asset.
Loans and receivables (including trade receivables, prepayments, deposits and other receivables, cash and bank balances)
are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. At each
reporting date subsequent to initial recognition, loans and receivables are carried at amortised cost using the effective
interest method, less any identified impairment losses. An impairment loss is recognised in the statement of comprehensive
income when there is objective evidence that the asset is impaired, and is measured as the difference between the asset's
carrying amount and the present value of estimated future cash flows discounted at the original effective interest rate.
Impairment losses are reversed in subsequent periods when an increase in the asset's recoverable amount can be related
objectively to an event occurring after the impairment was recognised, subject to a restriction that the carrying amount of
the asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment
not been recognised.
- Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other financial institutions,
and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to
an insignificant risk of changes in value, having been within three months of maturity at acquisition. Bank overdrafts that
are repayable on demand and form an integral part of the Group's cash management are also included as a component of cash
and cash equivalents for the purpose of the consolidated statement of cash flows
- Trade receivables
Trade receivables are recognised initially at the lower of their original invoiced value and recoverable amount. A
provision is made when it is likely that the balance will not be recovered in full. Terms on receivables range from 30 to
90 days.
- Financial liabilities and equity
Financial liabilities and equity are recognised on the Group's statement of financial position when the Group becomes a
party to a contractual provision of an instrument. Financial liabilities and equity instruments issued by the Group are
classified according to the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets
of the Group after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds
received, net of transaction costs.
The Group's financial liabilities include trade payables and accrued liabilities.
- Trade payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method. Terms on accounts payable range from 10 to 90 days.
Foreign currency risk
Currency risk is the risk that the holding of foreign currencies will affect the Group's position as a result of a change
in foreign currency exchange rates. The Group has no significant foreign currency risk as most of the Group's financial
assets and liabilities are denominated in functional currencies of relevant Group entities. Accordingly, no quantitative
market risk disclosures or sensitivity analysis for currency risks have been prepared.
The results and financial position of all the Group entities (none of which has the currency of a hyper-inflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
(a) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance
sheet;
(b) income and expenses for each income statement are translated at average exchange rates (unless this average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated at the rate on the dates of the transactions); and
(c) all resulting exchange differences are recognised in other comprehensive income.
Equity
Share capital is the amount subscribed for shares at their nominal value.
Share premium represents the excess of the amount subscribed for the share capital over the nominal value of the respective
shares net of share issue expenses.
Retained earnings represent the cumulative earnings of the Group attributable to equity shareholders.
The reverse acquisition reserve relates to the adjustment required by accounting for the reverse acquisition in accordance
with IFRS 3 'Business combinations'.
Other reserves relate to the charge for share-based payments in accordance with IFRS 2 'Share-based Payments'.
Share-based payments
For equity-settled share-based payment transactions the Group, in accordance with IFRS 2 'Share-Based Payments' measures
their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments
granted. The fair value of those equity instruments is measured at the grant date using the trinomial method. The expense
is apportioned over the vesting period of the financial instrument and is based on the number which is expected to vest and
the fair value of those financial instruments at the date of grant. If the equity instruments granted vest immediately, the
expense is recognised in full.
Functional currency translation
- Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the entity operates (functional currency), which is mainly pounds sterling (£) and it is this currency
the financial statements are presented in.
- Transaction and balances
Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at the year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
Employee benefit costs
The Group operates a defined contribution pension scheme. Contributions payable by the Group's pension scheme are charged
to the income statement in the period in which they relate.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker, who is responsible for allocating resources and assessing performance of the operating segments as
identified by the Board of Directors.
Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated
based on historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The
estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed below:
Judgements
(a) Capitalisation of development costs
Our business model is underpinned by our email and cross-channel marketing automation platform, dotmailer. Internal
activities are continually undertaken to enhance and maintain the product in a bid to stay ahead of our competition.
Management review the work of developers during the period and make the following judgements:
-Internal work relating to product development is reviewed against IAS 38 criteria and will be capitalised if management
feel the criteria have been met.
-Internal work relating to the maintenance of existing products is expensed to the income statement and accounted for in
payroll costs.
Estimates and assumptions
(a) Estimated impairment of goodwill
The Directors have carried out a detailed impairment review in respect of goodwill. The Group assesses at each reporting
date whether there is an indication that an asset may be impaired, by considering the net present value of discounted cash
flow forecasts which have been discounted at 10%. The cash flow projections are based on the assumption that the Group can
realise projected sales. A prudent approach has been applied with no residual value being factored
Further details on the estimates and assumptions we make in our annual impairment testing of goodwill are included in note
11 to the Financial Statements. At the period end, based on the assumptions, there was no indication of impairment to the
carrying value of goodwill.
(b) Share-based compensation
Key management believe that there will not be only one acceptable choice for estimating the fair value of share-based
payment arrangements. The judgements and estimates that management apply in determination of the share-based compensation
are summarised below:
-Selection of a valuation model
-Making assumptions used in determining the variables used in a valuation model
i. expected life
ii. expected volatility
iii. expected dividend yield
iv. interest rate
Further detail on the estimates and assumptions we make in our share-based compensation are included in note 26 to the
financial statements. The charge made to income statement for period is also disclosed here.
(c) Depreciation and amortisation
The Group depreciates short leasehold, fixtures and fittings, computer equipment and amortises computer software,
internally generated development costs and domain names on a straight-line method over the estimated useful lives. The
estimated useful lives reflect the Directors' estimate of the periods that the Group intends to derive future economic
benefits from the use of the Group's short leasehold fixtures and fittings, computer equipment, computer software,
internally generated development costs and domain names.
(d) Bad debt provision
We perform ongoing credit evaluations of our customers and grant credit based upon past payment history, financial
condition and anticipated industry conditions. Customer payments are regularly monitored and a provision for doubtful
accounts is established based upon specific situations and overall industry conditions. Hence the provision is maintained
for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable.
In making this assessment, management take into consideration (i) any circumstances of which we are aware regarding a
customer's inability to meet its financial obligations and (ii) our judgements as to potential prevailing economic
conditions in the industry and their potential impact on the Group's customers.
3. SEGMENTAL REPORTING
The Group's single line of business is the provision of web-based marketing services. The chief operating decision-maker
considers the Group's only reportable segment to be by geographical location, this being UK, US and rest of the world
("RoW") operations as shown below:
30.6.2017
UK US RoW Total
£'000 £'000 £'000 £'000
Income statement
Revenue 24,743 3,907 3,316 31,966
Gross profits 21,291 3,293 2,923 27,507
Profit before income tax 4,779 1,062 2,250 8,091
Total comprehensive income attributable to the owners of the parent 3,929 967 2,250 7,146
Financial position
Total assets 32,578 1,556 302 34,436
Net current assets 21,961 1,120 213 23,294
Revenue from external customers is attributed to the geographical segments noted above based on the customers' location.
There were no customers who account for more than 10% revenue (2016: none).
30.6.2016
UK US RoW Total
£'000 £'000 £'000 £'000
Income statement
Revenue 22,056 3,022 1,848 26,926
Gross profits 19,298 2,565 1,668 23,531
Profit before income tax 4,244 504 1,467 6,215
Total comprehensive income attributable to the owners of the parent 3,398 539 1,442 5,379
Financial position
Total assets 27,410 1,014 530 28,954
Net current assets 17,791 756 443 18,990
4. EMPLOYEES AND DIRECTORS
30.6.17 30.6.16
£'000 £'000
Wages and salaries 11,217 9,667
Social security costs 1,146 1,036
Other pension costs 252 243
12,615 10,946
The average monthly number of employees during the year is as follows
30.6.17 30.6.16
Directors 6 7
Sales and Marketing product 120 100
Development and system engineers 56 43
Administration 56 54
238 204
During the year the Group also capitalised staff-related costs of £2,072,417 (2016: £1,338,915) in relation to internally
generated development costs.
5. NET FINANCE INCOME
30.6.17 30.6.16
£'000 £'000
Finance income:
Deposit account interest 15 51
15 51
6. OPERATING PROFIT
Costs by nature
Profit from continuing operations has been arrived after charging/(crediting):-
30.6.17 30.6.16
£'000 £'000
Direct marketing 2,073 1,984
Outsourcing 186 172
Other costs 2,200 1,239
Total cost of sales 4,459 3,395
30.6.17 30.6.16
£'000 £'000
Staff related costs (inc Directors emoluments) - note 4 12,615 10,946
Operating leases: Land and buildings 954 865
Operating lease: Other 43 48
Audit remuneration 40 37
Amortisation of intangibles 1,544 1,330
Depreciation charge 494 450
Legal, professional and consultancy fees 424 289
Computer expenditure 1,809 1,236
Bad debts 8 801
Foreign exchange (gains)/losses (21) (246)
Travelling 425 471
Office running 158 174
Other costs 938 966
Total administration costs 19,431 17,367
During the year the Group obtained the following services from the Group's auditor at costs detailed below:
30.6.17 30.6.16
£'000 £'000
Fees payable to the Company's auditor for the audit of Parent Company and consolidated financial statements 8 8
Fees payable to the Company's auditor for other services 28 25
- audit of Company subsidiaries
- non-audit fees: Tax and review of interim accounts 4 4
40 37
7. INCOME TAX EXPENSE
Analysis of the tax charge from continuing operations:
30.6.17 30.6.16
£'000 £'000
Current tax on profits for the year 847 514
Deferred tax on origination and reversal of timing differences 98 333
945 847
Factors affecting the tax charge:
30.6.17 30.6.16
£'000 £'000
Profit on ordinary activities before tax 8,091 6,215
Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 19.75% (2016: 20.75%) 1,598 1,243
Effects of:
Expenses not deductible 12 164
Research and development enhanced claim (1,004) (670)
Expenditure permitted on exercising options (141) (465)
Overseas tax (profits)/losses 64 (15)
Capital allowances in excess of depreciation 318 257
Total income tax 847 514
Deferred tax was calculated using the rate 19.75% (2016: 19.75%). For further details on deferred tax see note 22.
8. PROFIT/(LOSS) OF PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent Company is not presented
as part of these financial statements. The parent Company's loss before exceptional items for the financial year was
£390,345 (2016: profit: £4,601,353)
9. DIVIDENDS
Amounts recognised as distributions to equity holders in the period
30.6.17 30.6.16
£'000 £'000
Paid dividend for year end 30 June 2017 of 0.857p (2016: 0.357p) per share 2,449 1,054
Proposed dividend for the year end 30 June 2017 of 0.55p (2016: 0.84p) per share 1,629 2,476
The proposed final dividend is subject to approval by the shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The 0.55p is a general dividend (2016: the 0.84p is broken down between a general dividend of 0.43p and a special dividend of 0.41p).
10. EARNINGS PER SHARE
Earnings per share data is based on the consolidated profit using and the weighted average number of shares in issue of the
parent Company. Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by
the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of shares adjusted to assume the conversion of
all dilutive potential ordinary shares.
Reconciliations are as follows:-
30.6.17
Weighted
average Per share
From continuing operations Earnings number of Amount
£'000 shares Pence
Basic EPS
Profit for the year attributable to the owners of the parent 7,146 295,457,101 2.42
Options and warrants - 1,061,738 -
Diluted EPS
Profit for the year attributable to the owners of the parent 7,146 296,518,839 2.41
30.6.16
Weighted
average Per share
From continuing operations Earnings number of Amount
£'000 shares Pence
Basic EPS
Profit for the year attributable to the owners of the parent 5,368 293,095,257 1.83
Options and Warrants - 977,555 -
Diluted EPS
Profit for the year attributable to the owners of the parent 5,368 294,072,812 1.83
Weighted average number of shares
30.6.17 30.6.16
Shares Shares
Basic EPS 295,457,101 293,095,257
Diluted EPS 296,518,859 294,072,812
11. GOODWILL
Group
30.6.17 30.6.16
COST £'000 £'000
At 1 July
At 30 June 4,121 4,121
AMORTISATION
At 1 July 3,512 3,512
Impairment - -
At 30 June 3,512 3,512
NET BOOK VALUE 609 609
Goodwill arising on business combinations is not amortised but is reviewed for impairment on an annual basis, or more
frequently if there are indications that goodwill may be impaired. Goodwill acquired in a business combination is
allocated, at acquisition, to cash generating units (CGUs) that are expected to benefit from that business combination.
The carrying amount of goodwill relates wholly to the Group's single trading activity and business segment. This has been
tested for impairment during the current financial year by comparison with the recoverable amounts of the CGU.
Recoverable amounts for CGUs are based on the higher of value in use and fair value less costs to sell. The recoverable
amounts of the CGU have been determined from value in use calculations. These calculations use pre-tax cash flow
projections based on financial budgets approved by management covering a five-year period. The key assumptions for the
value in use calculations are those regarding discount rates, growth rates, and expected changes in margins. Management
estimates discount rates using pre-tax rates that reflect the current market assessment of the time value of money and the
risks specific to the CGUs. Changes in income and expenditure are based on past experience and expectations of the future
changes in the market. The pre-tax discount rate used to calculate the value in use is 10% (2016: 10%). The valuations
indicate sufficient headroom such that a reasonably possible change in key assumptions would not result in impairment of
goodwill.
12. INTANGIBLE ASSETS
Group
Computer Internally generated development Domain
software costs names Totals
£'000 £'000 £'000 £'000
COST
At 1 July 2016 362 8,107 16 8,485
Additions 135 2,244 - 2,379
At 30 June 2017 497 10,351 16 10,864
AMORTISATION
At 1 July 2016 264 4,521 16 4,801
Amortisation for the year 56 1,488 - 1,544
At 30 June 2017 320 6,009 16 6,345
NET BOOK VALUEAt 30 June 2017 177 4,342 - 4,519
Computer Internally generated development Domain
software costs names Totals
£'000 £'000 £'000 £'000
COST
At 1 July 2015 274 6,625 16 6,915
Additions 88 1,482 - 1,570
At 30 June 2016 362 8,107 16 8,485
AMORTISATION
At 1 July 2015 228 3,227 16 3,471
Amortisation for the year 36 1,294 - 1,330
At 30 June 2016 264 4,521 16 4,801
NET BOOK VALUEAt 30 June 2016 98 3,586 - 3,684
Development cost additions represents resources the Group have invested in the development of new innovative and ground
breaking technology products for marketing professionals. This platform allows them to create, send and automate marketing
campaigns. Following development of the products the Group intends to licence the use of the platform.
13. PROPERTY, PLANT AND EQUIPMENT
Group
Short Fixtures & Computer
leasehold fittings equipment Totals
£'000 £'000 £'000 £'000
COST
At 1 July 2016 444 448 1,760 2,652
Additions 55 86 234 375
Disposals - - (601) (601)
At 30 June 2017 499 534 1,393 2,426
DEPRECIATION
At 1 July 2016 147 293 1,070 1,510
Depreciation for the year 67 86 341 494
Eliminated on disposal - (611) (611)
At 30 June 2017 214 379 800 1,393
NET BOOK VALUE
At 30 June 2017 285 155 593 1,033
Short Fixtures & Computer
leasehold fittings equipment Totals
£'000 £'000 £'000 £'000
COST
At 1 July 2015 395 401 1,354 2,150
Additions 49 47 406 502
At 30 June 2016 444 448 1,760 2,652
DEPRECIATION
At 1 July 2015 95 203 755 1,053
Depreciation for the year 52 90 315 457
At 30 June 2016 147 293 1,070 1,510
NET BOOK VALUE
At 30 June 2016 297 155 690 1,142
14. INVESTMENTS
Company
Shares in Shares in
Group Group
undertakings undertakings
30.6.17 30.6.16
COST £'000 £'000
At 1 July 2016Additions 8,7051 8,705-
At 30 June 2017 8,706 8,705
AMORTISATION
At 1 July and 30 June 3,519 3,519
NET BOOK VALUE
At 30 June 5,187 5,186
The Group's or the Company's investments at the balance sheet date in the share capital of companies include the
following:
Subsidiaries Nature of business Class of share Proportion of
voting power
held %:
dotmailer Limited Web and email-based Ordinary 100
marketing Ordinary A 100
dotsurvey Limited Dormant Ordinary 100
dotsearch Europe Limited Branch company Ordinary 100
dotcommerce Limited Dormant Ordinary 100
doteditor Limited Dormant Ordinary 100
dotSEO Limited Dormant Ordinary 100
dotagency Limited Dormant Ordinary 100
dotmailer Inc Web and email- based Ordinary 100
marketing
dotmailer Pty Limited Web and email- based Ordinary 100
marketing
Dotmailer Development Ltd Holding company Ordinary 100
Dotmailer SA Pty Development hub Ordinary 100
Dotmailer LLC Development hub Ordinary 100
All of the above subsidiaries have been included within the consolidated results. All the above companies with the
exception of dotmailer Inc, Dotmailer SA Pty, Dotmailer LLC and dotmailer Pty Limited were incorporated in England and
Wales. dotmailer Inc was incorporated in Delaware (US), dotmailer Pty Limited was incorporated in New South Wales
(Australia), Dotmailer SA Pty was incorporated in South Africa and Dotmailer LLC was incorporated in the Republic of
Belarus.
15. TRADE AND OTHER RECEIVABLES
Group Company
30.6.17 30.6.16 30.6.17 30.6.16
£'000 £'000 £'000 £'000
Current:
Trade receivables 6,425 5,559 - -
Less: Provision for impairment of trade receivables (502) (824) - -
Trade receivables - net 5,923 4,735 - -
Other receivables 111 137 - -
Amounts owed by Group undertakings - - 4,609 7,080
VAT - - 14 9
Prepayments and accrued income 1,813 1,334 10 13
7,847 6,206 4,633 7,102
Further details on the above can be found in note 21.
Included within prepayments is an amount of £621,065 (2016: £271,680) in relation to deferred commission which is
considered to be long-term.
16. CASH AND CASH EQUIVALENTS
Group Company
30.6.17 30.6.16 30.6.17 30.6.16
£'000 £'000 £'000 £'000
Bank accounts 20,428 17,313 591 639
20,428 17,313 591 639
Further details on the above can be found in note 21.
17. CALLED UP SHARE CAPITAL
Allotted, issued, fully paid Nominal 30.6.17 30.6.16
number value £'000 £'000
296,238,485 (2016: 294,784,789) £0.005 1,481 1,473
1,481 1,473
During the reporting period the Company undertook the following transactions involving the issuing and reclassifying of
issued share capital:
On 16 November 2016 a number of employees exercised their share options increasing the issued share capital by 788,696
shares at a premium price of 0p.
On 28 February 2017 a number of employees exercised their share options increasing the issued share capital by 525,000
shares at a premium price of 28.5p.
On 28 June 2017 a number of employees exercised their share options increasing the issued share capital by 140,000 shares
at a premium price of 50p.
18. RESERVES
Group
Retained Share Reverse acquisition
earnings premium reserve
£'000 £'000 £'000
As at 1 July 2016 20,611 6,138 (4,695)
Issue of share capital - 152 -
Dividends (2,479) - -
Profit for the year 7,146 - -
Transfer of reserves 28 - -
Other comprehensive income: Currency translation - - -
Share-based payment - - -
Balance as at 30 June 2017 25,306 6,290 (4,695)
Retranslation Other
Reserve reserves Totals
£'000 £'000 £'000
As at 1 July 2016 8 174 22,236
Issue of share capital - (3) 149
Dividends
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