REG - dotDigital Group plc - Interim Results <Origin Href="QuoteRef">DOTD.L</Origin> - Part 1

dotDigitalAnnouncement

23/02/2016 07:11

RNS Number : 7755P
dotDigital Group plc
23 February 2016
FOR IMMEDIATE RELEASE  23 FEBRUARY 2016
Analyst meeting today: 9.30am start - at dotdigital's offices, No.1 London Bridge, SE1
Please call Lisa Baderoon on 07721 413 496 if you would like to attend or email: lisa.baderoon@dotdigitalgroup.com
dotdigital's Interim Report will shortly be available on the website: www.dotdigitalgroup.com
dotdigital Group Plc
("dotdigital", "Company" or the "Group")
INTERIM RESULTS
For the six months ended 31 December 2015
"CONTINUED STRONG REVENUE & PROFIT GROWTH"
dotdigital Group Plc (AIM:DOTD), the leading provider of intuitive software as a service ("SaaS") and managed services to digital marketing professionals, announces its results for the six months ended 31 December 2015.
Six Month Key Highlights
 Revenue from operations up 29% to 12.9m from 10.0m in the previous interim period
 Recurring monthly revenue from dotmailer's SaaS based usage charges up 35% to 10.0m
 Email related creative and managed service up 36% to 1.5m
 Recurring revenue charges from market automation functionality has increased by 156% compared to the previous interim period
 Profit before tax up 30% to 3.3m
 Earnings per share has increased by 35% to 1.04 from 0.77 in the previous interim period
 Healthy growth in net cash generated from operating activities of 139% to 3.3m
 Strong net cash position of 14.8m as at 31 December 2015
dotmailer
Over 200 new clients signed in the period including Paul Smith, Asana, Jet2, Woodland Trust, Huntress, TUI Travel, Stagecoach, Dune and Hawes & Curtis
Average monthly recurring spend across all clients increased from 400 to 525
dotmailer's Magento Connector
 Chosen by Magento as the only Platinum Technology Partner for Marketing Automation globally (November 2015)
 Over 250 active clients now using dotmailer's Magento connector
 Average recurring spend from clients of 1,200 per month compared to 775
 Annualised revenues of more than 3.0m
International Initiatives
Revenue from the US region grew by 91% to US$2.1m from US$1.1m, reflecting good progress made in building both our presence and the number of clients
Strong pipeline now started via relationships built across the APAC region
Commenting on current trading and outlook, Milan Patel, CEO & CFO said:
"The strategy of focusing on fast growing medium/light-enterprise businesses and Magento clients has driven average monthly spend up by 31%. This combined with a focus on longer term contracts and client retention is leading to notably higher client lifetime values.
H1 2016 will see a keen focus on developing a robust channel and reseller pipeline especially in support of our geographic ambitions in USA and APAC.
Based on the strong performance at the half year to 31 December 2015, the growing demand for marketing automation, the newly released product features and investment strategy, the Board remains confident of delivering strong growth, underlying profitability and increasing shareholder value for this year. The investments were slower than expected in 15/16 and therefore will lead to an increased EBITDA in the current year but will see a marginally slower revenue growth in 16/17. The long term outlook for dotdigital remains positive and we look forward to providing further progress at the time of our year end trading update in July 2016."
For further enquiries please contact:
dotdigital Group Plc
Milan Patel, CEO & CFO
www.dotigitalgroup.com
Tel: 020 8662 2777
Financial PR and Investor Relations
Lisa Baderoon
Lisa.Baderoon@dotmailer.com
Tel: 07721 413 496
N+1 Singer (Nominated Adviser and Joint Broker)
Shaun Dobson, Head of Corporate Finance
Liz Yong, Corporate Finance
Tel: 020 7496 3000
finnCap (Joint Broker)
Stuart Andrews, Corporate Finance
Tel: 020 7220 0500
OVERVIEW
As announced in the trading update on the 19 January 2016, dotdigital delivered strong revenue growth in line with expectation. Profits for the interim period were slightly ahead of market expectation.
dotmailer: Email Marketing and Marketing Automation Software - SaaS Products
The performance from the SaaS product based email marketing platform continues to grow with revenue increasing by 29% for the six month period to 12.9m (H1 2015: 10m) with strong recurring revenue continuing to form a significant part of this total.
Profit before tax grew by 30% to 3.3m after further investment in building out the Mid and West of America, Australia and the addition of the hybrid cloud infrastructure in the US which will assist with the future organic growth of the business.
This focus on winning higher value clients, as well as growth in recurring spend from existing clients and higher levels of client retention driven by clients signing up longer term contracts has led to strong organic growth. This is evident by the average monthly billing from all clients increasing by 31% from 400 per month to 525.
Revenues from the US region have continued to build strongly. The New York sales office maintains its focus on sector niches including Magento and higher value corporate ecommerce clients, identified as being the most attractive for the dotmailer product platform. The Magento team has been strengthened and now mirror's key Magento system integrators on the East Coast, the Mid West and West Coast. It is anticipated that further investment will be made in expanding the US sales, channel and account management and support teams in the next 12 months.
We successfully opened our APAC office, based in Australia in July 2015, and have already seen strong relationships built with influential and successful partners.
Globally, our email creative and managed services revenue again grew this time from 1.1m to 1.5m during the period. Hence, highlighting further revenue growth potential that can be unlocked from these new services. This offering helps generate positive return on investment (ROI) for our clients and helps time-poor marketers to outsource their creative and campaign management/strategy to email marketing experts. These activities are also designed to encourage further technology uptake across the customer base thereby leading to greater adoption of the latest product innovation which in turn delivers better results for customers and higher recurring revenues for dotdigital.
Further Product Innovation
The dotmailer platform continues to evolve to provide higher levels of marketing automation for our eCommerce, B2C and B2B clients and the product releases in July and November 2015 including some exciting new capabilities e.g.
- A new connector for the new Magento 2 platform;
- Hyper personalised emails using Advanced Personalisation;
- Hyper personalised Landing Pages;
- Omni-channel marketing automation within our Program Builder with Channel Extensions;
- Lead scoring
We have now seen an increase of 156% in incremental recurring revenues by the adoption of our recently built marketing automation feature add-ons from our clients, which has also helped in delivering strong margins.
Financial Summary 
Balance Sheet & Cash Position
dotdigital continues with its strong cash generation from operations with the interim end net cash balance growing to 14.8m after a total capital expenditure of 1.1m invested mainly in hardware/software upgrades of 0.3m and product development of 0.8m. The Group continues to maintain a healthy balance sheet with gross assets of 25.4m and has no debt.
Dividend Policy
A dividend of 0.36p per ordinary share, (an increase of 80% on the prior period), was proposed by the Company at the time of its Final Results in October last year hence clearly demonstrating a commitment from the Board to deliver value by focusing on total shareholder return in the future. This dividend was approved by shareholders at the Annual General Meeting on the 15 December 2015 and paid on 29 January 2016. The Group's current policy continues to be that a full review of dividends will be held at the time of the year end, therefore the Board is not proposing an interim dividend.
Current Trading & Outlook
The core business continues to perform strongly and the strategy to continue to invest in the business is delivering pleasing results.
The Group's organic growth strategy continues to be focussed around four main areas:
1. Geographic expansion;
2. Developing strategic partnerships;
3. Product Innovation and Features;
4. Identifying new customer niches.
In the six months to 31 December 2015, key performance highlights against these areas were:
1. Geographic expansion
oGrowth of our US region revenue, which grew by approximately 91% from US$1.1m to US$2.1m
o During the six months period to 31 December 2015 dotmailer explored a series of options and strategies for growth via channel/reseller in the US market. As a result, rather than find, hire and build a team with appropriate expertise, in December dotdigital engaged with a US based specialist Marketing Management Consultancy company to assist with this initiative. Often engaged by US Venture Capitalists to kick start growth, the chosen organisation has specific expertise, credentials and manpower to define and roll out a robust plan for dotdigital in the US in H2 2016. The Board are confident that this more concentrated approach will ultimately be more successful and quicker.
o H2 2016 (Jan - June 2016) will see a period of refinement across product, marketing, pricing and support to ensure the business is well placed to compete, and a period of aggressive sales-focussed effort.
o In alignment with this approach, in February 2016, a new Sales and Marketing focussed SVP/General Manager of dotmailer USA was hired to strengthen our senior operating team within the market and to provide local leadership for this important growth initiative.
Growth in our APAC region:
o The operations in Australia (which will act as the hub for broader APAC) has now been established. We have signed up eight key partners that help underpin our indirect channel sales strategy. A strong sales pipeline has now started to be built from these partnerships. The APAC region has already generated $AUS 0.3m in the interim period.
2. Developing strategic partnerships
o dotdigital was delighted to announce on 17 November 2015 that we had been appointed by Magento* as their only choice of Platinum Provider of Email and Marketing Automation for their entire customer base globally. The only other provider to achieve this accreditation (in a different sector) was PayPal, whose credentials underpin the significance of this appointment.
o "When we seek out partners, we look for companies that like Magento Commerce drive exceptional experiences across every stage of the commerce lifecycle and provide merchants with a distinct competitive advantage", said Mark Lavelle, CEO of Magento Commerce. "dotmailer's ease-of-use and ease-of-integration is in complete alignment with our strategy to enable retailers to extend Magento with the most advanced capabilities provided by our partners." 
o "We are obviously delighted that following an extremely successful relationship between dotmailer and Magento over the last two years we have been awarded this prestigious global Platinum Partnership status which clearly recognises the unique strengths of our dotmailer platform", said Simone Barratt, CEO of dotdigital. "We believe that this enhanced relationship will provide greater opportunities for dotmailer particularly as part of our international growth strategy."
*About Magento Commerce 
Trusted by more than 240,000 businesses worldwide, Magento Commerce is the leading provider of open omnichannel innovation to retailers, brands and branded manufacturers across retail B2C and B2B industries. In addition to its flagship open source digital commerce platform, Magento Commerce boasts a strong portfolio of cloud-based omnichannel solutions empowering merchants to successfully integrate digital and physical shopping experiences. With over $50B in gross merchandise volume transacted on the platform annually, Magento Commerce is the dominant provider to the Internet Retailer Top 1000, counting more than double the clients to the next closest competitor, and to the Internet Retailer Hot 100. Magento Commerce is supported by a vast global network of solution and technology partners, a highly active global developer community and the largest eCommerce marketplace for extensions available for download on the Magento Marketplace. More information can be found at www.magento.com. 
o The dotdigital Magento team has been considerably strengthened resulting in a well-seasoned and experienced team which now covers the geo footprint of key Magneto system integrators on the East Coast, Mid-West and West Coast.
o The Magento connector revenue stream has been growing and now generates more than 3.0m on an annualised basis.
3. Product innovation and features
o Key product features which were released in July and November 2015 included; a new connector for the new Magento 2 platform, hyper personalised Landing pages, Advanced personalisation and Omni-channel Channel Extensions 
o Deployment of a new dotmailer platform instance into the US utilising the latest hybrid-cloud technology, enabling new US customers a performant hosting environment that will cater for in-region data privacy requirements
o A new Support centre and Developer hub implemented to enhance customer experience and drive the developer eco-system
o The product development team had its annual 'Hackathon', where new ideas and technologies are rapidly developed in a short time frame. New and exciting innovations, solving customer's pain points, created in the event are making their way onto the product roadmap and future releases
o dotdigital's agile product team develop to 4 cycles per annum of formalised and managed releases. Input for prioritisation comes from:
 Externally from client and prospects needs and requests
 Internally from a continuous focus on efficiencies to support dotdigital's growth and scale
 Commercially from the identification of additional opportunities for technology adoption which, in turn drives recurring revenues
 Strategically to exploit any potential strategic partnerships/initiatives that will drive value for the business
4. Identifying new customer niches
o dotmailer continues to explore the 'localisation and translation' capabilities of the core platform through strategic partnerships where the cost of sales and marketing is borne by the partner. This low-risk approach protects shareholder value whilst at the same time enables dotdigital to learn, test and make prudent decisions regarding further investment.
Outlook Summary
The strategy of focusing on fast growing medium/light-enterprise businesses and Magento clients has driven average monthly spend up by 31%. This combined with a focus on longer term contracts and client retention is leading to notably higher client lifetime values.
H2 2016 will see a keen focus on developing a robust channel and reseller pipeline especially in support of our geographic ambitions in USA and APAC.
Based on the strong performance at the half year to 31 December 2015, the growing demand for marketing automation, the newly released product features and investment strategy, the Board remains confident of delivering strong growth, underlying profitability and increasing shareholder value for this year. The investments were slower than expected in 15/16 and therefore will lead to an increased EBITDA in the current year but will see a marginally slower revenue growth in 16/17. The long term outlook for dotdigital remains positive and we look forward to providing further progress at the time of our year end trading update in July 2016.
dotdigital Group Plc
Consolidated Income Statement
For the six months ended 31 December 2015
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
note
'000s
'000s
'000s
Continuing operations
Revenue
4
12,851
9,992
21,366
Cost of sales
(1,358)
(1,166)
(2,292)
Gross profit
4
11,493
8,826
19,074
Administrative expenses
(8,204)
(6,298)
(13,858)
Operating profit
3,289
2,528
5,216
Finance income
24
12
27
Profit before income tax
3,313
2,540
5,243
Income tax expense
(319)
(353)
(587)
Profit for the period attributable to the owners of the parent
2,994
2,187
4,656
Earnings per share from continuing operations
(pence per share)
Basic
6
1.04
0.77
1.63
Diluted
6
1.03
0.75
1.61
dotdigital Group Plc
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2015
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
note
'000s
'000s
'000s
Profit for the period
2,994
2,187
4,656
Other comprehensive income
Items that may be subsequently reclassified to
profit and loss:
Exchange differences on translating foreign operations
(26)
28
3
Total comprehensive income attributable to:
Owners of the parent
4
2,968
2,215
4,659
dotdigital Group Plc
Consolidated Statement of Financial Position
For the six months ended 31 December 2015
Note
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
'000s
'000s
'000s
Assets
Non-current assets
Goodwill
609
609
609
Intangible assets
3,608
3,277
3,444
Property, plant and equipment
1,144
1,113
1,097
5,361
4,999
5,150
Current assets
Trade and other receivables
5,213
4,552
5,328
Cash and cash equivalents
14,813
9,503
11,932
20,026
14,055
17,260
Total assets
4
25,387
19,054
22,410
Equity attributable to the 
owners of the parent
Called up share capital
8
1,471
1,426
1,435
Share premium
6,045
5,295
5,382
Reverse acquisition reserve
(4,695)
(4,695)
(4,695)
Other reserves
26
48
(25)
Retranslation reserve
(29)
 22 
(3)
Retained earnings
9
19,291
14,398
16,297
Total equity
22,109
16,494
18,391
dotdigital Group Plc
Consolidated Statement of Financial Position
For the six months ended 31 December 2015
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
note
'000s
'000s
'000s
Liabilities
Non-current liabilities
Deferred tax
582
314
383
582
314
383
Current liabilities
Trade and other payables
2,575
2,034
3,437
Current tax payable
121
212
199
2,696
2,246
3,636
Total liabilities
3,278
2,560
4,019
Total equity and liabilities
25,387
19,054
22,410
dotdigital Group Plc
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2015
Share
Share
Retained
Other
Reverse
Retranslation
Total
capital
premium
earnings
reserves
acquisition
Reserve
reserve
'000s
'000s
'000s
'000s
'000s
'000s
'000s
As at 1 July 2014
1,414
5,147
12,211
82
(4,695)
(6)
14,153
Profit for the period
 - 
 - 
2,187 
 - 
 - 
 - 
2,187
Retranslation reserve
 - 
 - 
 - 
 - 
 - 
28
28
Issue of share capital
12
148
 - 
 - 
 - 
 - 
160
Share repurchase 
 - 
 - 
 - 
(81)
 - 
 - 
(81)
Share based payments
 - 
 - 
 - 
47 
 - 
 - 
47
As at 31 December 2014
1,426
5,295
14,398
48
(4,695)
22
16,494
As at 1 January 2015
1,426
5,295
14,398
48
(4,695)
22
16,494
Profit for the period
 - 
 - 
2,469
 - 
 - 
 - 
2,469
Dividends
 - 
 - 
(570)
 - 
 - 
 - 
(570)
Issue of share capital
 9 
 87 
 - 
 - 
 - 
 - 
96
Retranslation reserve
 - 
 - 
 - 
 - 
 - 
(25)
(25)
Share repurchase
 - 
 - 
 - 
(132)
 - 
 - 
(132)
Share based payments
 - 
 - 
 - 
59
 - 
 - 
59
As at 30 June 2015
1,435
5,382
16,297
(25)
(4,695)
(3)
18,391
As at 1 July 2015
1,435
5,382
16,297
(25)
(4,695)
(3)
18,391
Profit for the period
 - 
 - 
2,994
 - 
 - 
 - 
2,994
Retranslation reserve
 - 
 - 
 - 
 - 
 - 
(26)
(26)
Issue of share capital
 36 
 663 
 - 
 - 
 - 
 - 
699
Share based payments
 - 
 - 
 - 
51
 - 
 - 
51
As at 31 December 2015
1,471
6,045
19,291
26
(4,695)
(29)
22,109
dotdigital Group Plc
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2015
- Share capital is the amount subscribed for shares at nominal value.
- Share premium represents the excess of the amount subscribed for Share Capital over the nominal value net of the share issue expenses.
- Retained earnings represents the cumulative earnings of the Group attributable to equity shareholders.
- The reverse acquisition reserve relates to the adjustment required to account the reverse acquisition in accordance with International Financial Reporting Standards.
- Other reserves relate to the charge for the share based payments in accordance with International Financial Reporting Standard 2.
- Retranslation reserve relates to the retranslation of a foreign subsidiary into the functional currency of the Group.
dotdigital Group Plc
Consolidated Statement of Cash Flows
For the six months ended 31 December 2015
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
note
'000s
'000s
'000s
Cash flow from operating activities
7
3,539
1,487
5,667
Tax paid 
(197)
(89)
(263)
Net cash generated from operating activities
3,342
1,398
5,404
Cash flow from investing activities
Purchase of intangible fixed assets
(812)
(825)
(1,612)
Purchase of tangible fixed assets
(280)
(467)
(667)
Sale of tangible fixed assets
 - 
 - 
1
Interest received
24
12
27
Net cash used in investing activities
(1,068)
(1,280)
(2,251)
Cash flows from financing activities
Equity dividends paid
 - 
 - 
(570)
Share repurchase
 - 
(81)
(213)
Share issue
607
160
256
Net cash generated from financing activities
607
79
(527)
Increase in cash and cash equivalents
2,881
197
2,626
Cash and cash equivalents at beginning of period
11,932
9,306
9,306
Cash and cash equivalents at end of period.
14,813
9,503
11,932
The above does not include the effect of foreign exchange rate changes on cash and cash equivalents due to its immaterial nature.
dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2015
1. GENERAL INFORMATION
dotdigital Group Plc is a company incorporated in England and Wales and quoted on the AIM market.
2. BASIS OF INFORMATION
These consolidated interim financial have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and on a historical basis, using the accounting policies which are consistent with those set out in the Group's annual report and accounts for the year ended 30 June 2015. The interim financial information for the six months to 31 December 2015, which complies with IAS 34 'Interim Financial Reporting' has been approved by the Board of Directors on 23 February 2016.
The unaudited interim financial information for the period ended 31 December 2015 does not constitute
statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 30 June 2015 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and contain an unqualified audit report and did not contain statements under Section498 to 502 of the Companies Act 2006.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2015, as described in those financial statements.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected
total earnings.
4. 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
and rest of the world("RoW") operations are shown below:
 6 months to 31 December 2015
UK
RoW
Operations
Operations
Total
'000s
'000s
'000s
Income statement
Revenue
10,757
2,094
12,851
Gross profit
9,680
1,813
11,493
Profit before income tax
2,775
538
3,313
Total comprehensive income attributable to the 
owners of the parent
2,456
512
2,968
Financial position
Total assets
24,198
1,189
25,387
Net current assets
17,038
292
17,330
dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2015
4. SEGMENTAL REPORTING (cont)
6 months to 31 December 2014
UK
RoW
Operations
Operations
Total
'000s
'000s
'000s
Income statement
Revenue
8,697
1,295
9,992
Gross profit
7,827
999
8,826
Profit before income tax
2,174
366
2,540
Total comprehensive income attributable to the 
owners of the parent
1,821
394
2,215
Financial position
Total assets
18,539
515
19,054
Net current assets
11,344
465
11,809
12 months to 30 June 2015
UK
RoW
Operations
Operations
Total
'000s
'000s
'000s
Income statement
Revenue
18,274
3,092
21,366
Gross profit
16,676
2,398
19,074
Profit before income tax
3,476
1,767
5,243
Total comprehensive income attributable to the 
owners of the parent
2,895
1,764
4,659
Financial position
Total assets
21,591
819
22,410
Net current assets
12,964
660
13,624
dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2015
5. DIVIDENDS
The proposed final dividend of 1,056,689 for the year ended 30 June 2015 of 0.36p per share was paid on the 29 January 2016.
6. EARNINGS PER SHARE
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
Continuing operations
Earnings per Ordinary share:
Basic (pence)
1.04
0.77
1.63
Diluted (pence)
1.03
0.75
1.61
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
'000s
'000s
'000s
Profit for the period from continuing
operations for the purpose of basic earnings 
per share excluding discontinued operations
2,994
2,187
4,656
dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2015
6. EARNINGS PER SHARE (cont..)
Weighted average number of shares in issue as follows:
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
Weighted average number
Basic
288,046,571
284,907,065
284,804,914
Diluted
290,951,657
292,274,982
289,806,680
7. RECONCILIATION OF PROFIT BEFORE CORPORATION TAX TO NET CASH GENERATED FROM OPERATIONS
6 months 
6 months 
12 months 
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
'000s
'000s
'000s
Profit before income tax from all operations
3,313
2,540
5,243
Adjustments for:
Depreciation and amortisation
879
724
1,556
Loss on disposal of fixed assets
 - 
 - 
(1)
Share based payments
51
47
106
Finance income
(24)
(12)
(27)
Currency revaluation
(26)
28
3
Decrease/(Increase) in trade and other receivables
114
(890)
(1,666)
(Decrease)/Increase in trade and other payables
(768)
(950)
453
Net cash from operations
3,539
1,487
5,667
8. CALLED UP SHARE CAPITAL
During the period ended 31 December 2015, 7,182,724 Ordinary Shares of 0.005 per share (31 December 2014: 2,430,000 Ordinary Shares of 0.005 per share, 30 June 2015: 4,220,000 Ordinary Shares of 0.005 per share) were issued.
The issued share capital as at 31 December 2015 was 294,184,789 Ordinary Shares of 0.005 per share
(31 December 2014: 285,212,065 Ordinary Shares of 0.005 per share, 30 June 2015: 287,002,065 Ordinary 
Shares of 0.005 per share as per the audited accounts).
dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2015
9. RETAINED EARNINGS
In the 6 months to December 2014, 285,000 0.005 Ordinary Shares with an aggregate nominal value of 1,425 were purchased and are held in treasury. A further 375,000 0.005 Ordinary Shares with an aggregate value of 1,875 were purchased in the 6 months to 30 June 2015 and are held in treasury. As a result, 660,000 Ordinary shares are now held in treasury and distributable reserves have been reduced by 212,475, being the consideration paid for these shares. The interim figures for the 6 months to 31 December 2014 have been restated to reflect this transaction.
10. RELATED PARTY NOTE
Transactions between the company and its subsidiaries, who are related parties, have been eliminated on
consolidation and are not disclosed in this note.
Key management remuneration:
Key management include Directors and non-executive Directors
The remuneration paid for key management for employee services are as follows:
6 months
6 months 
12 months
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
'000s
'000s
'000s
Remuneration and other short term benefits
368
384
1,002
Share based payments
9
 -
 20
Pension cost
22
28
 60
399
412
 1,082
dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2015
10. RELATED PARTY NOTE (cont.)
6 months 
6 months 
12 months
to 31 Dec 2015
to 31 Dec 2014
to 30 June 2015
Unaudited
Unaudited
Audited
'000s
'000s
'000s
The following transactions were carried out with related parties
Sale of services
Entities controlled by non - executive director of the Group:
Coms.com - Email marketing services
 - 
 - 
4
Cadence Performance Ltd - Email marketing services
2
 2 
3
2
 2 
7
Purchase of services
Entities controlled by non-executive directors of the Group:
Barretts of Old Limited
 - 
 3 
8
 - 
3
8
11. SUBSEQUENT EVENTS TO 31 DECEMBER 2015
As at the date of these statements and the date they were approved by the Board of Directors there were no such events to report.
Copies of this interim statement are available form the Company at its registered office at, No 1 London Bridge London, SE1 9BG. The interim financial information document will also be available on the Company's website www.dotdigitalgroup.com.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
IR ELLFLQLFFBBE