REG - dotDigital Group plc - Interim Results
25/02/2025 07:00
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RNS Number : 2820Y dotDigital Group plc 25 February 2025
25 February 2025
Dotdigital Group plc
("Dotdigital (https://www.dotdigital.com) " or the "Group
(https://www.dotdigitalgroup.com) ")
Interim results for the six months ended 31 December 2024
Dotdigital Group plc (AIM: DOTD), the leading SaaS provider of an all-in-one
customer experience and data platform (CXDP), announces its unaudited interim
results for the six months ended 31 December 2024 ("H1 FY25").
Financial Highlights
· Group revenue increased 10% to £42.4m (H1 FY24: £38.7m) in constant currency
· Recurring and repeating revenue as a percentage of total revenue was 95% (H1
FY24: 94%) and contracted recurring revenue represents 80% of total revenue
(H1 FY24: 79%)
· ARPC(1) increased 12.1% to £1,916 per month (H1 FY24: £1,709 per month)
· Adjusted EBITDA(2) of £13.8m up 11% from £12.4m
· Adjusted profit before tax(3) growth of 12% to £10.0m (H1 FY24: £8.9m)
· Net cash balance of £45.7m on 31 December 2024 (H1 FY24: £37.1m)
Operational Highlights
· Continued demand for Dotdigital and Fresh Relevance capabilities in line with
market trends, with added we personalisation capabilities enabling higher
value and larger customer wins
· Growth in all geographic regions with international revenue now representing
32% of total revenue
· Continued execution against the Group's product roadmap, with new product
innovation developments including the trial phase of the Group's native
WhatsApp channel ahead of launch in H2
Milan Patel, CEO of Dotdigital, commented:
"The first half of FY25 was a pleasing period of double digit revenue and
profit growth alongside execution against our product roadmap.
With an increasing market focus on data, personalisation and artificial
intelligence functionality, the organic and inorganic investments into our
platform in recent years have aligned us well with demand. We reported
continued growth across all geographic regions, and we are seeing an
increasing pipeline in EMEA and now North America and APAC, for the
capabilities brought about by the acquisition of Fresh Relevance.
We continue to focus on enhancing our offering, with the upcoming launch of
our WhatsApp native channel representing an exciting opportunity for customers
to further engage with increasingly mobile-first audiences.
We enter the second half trading in line with expectations for the full year,
and remain confident in our long-term growth prospects."
Analyst Briefing and Investor Presentation
Analyst briefing: Management will be hosting a live online presentation for
analysts today at 9am GMT. To register to attend the analyst presentation,
please contact dotdigital@almastrategic.com
(mailto:dotdigital@almastrategic.com) .
Live presentation to investors: Management will host a live online
presentation to investors via the Investor Meet Company platform on Friday, 28
March 2025 at 09.30am GMT. The presentation is open to all existing and
potential shareholders. Investors can sign up to Investor Meet Company for
free and add to meet Dotdigital via this link
(https://www.investormeetcompany.com/dotdigital-group-plc/register-investor) .
1: ARPC: Average revenue per customer (including new customers added in the
period and existing customers) based on our December billing
2: Adjusted EBITDA Earnings before interest, tax, depreciation and
amortisation, adjusted for exceptional items such as amortisation of acquired
intangibles and share based payments
3: Adjusted Profit before tax: Profit before tax adjusted for exceptional
items and share based payments
4: Consensus market expectations for the year to 30 June 2025 at the time of
publication are as follows: Revenue of £86.2m, Adjusted profit before tax of
£18.1m, Adjusted EBITDA of £26.7m
Contacts
Dotdigital Group Plc Tel: 020 3953 3072
Milan Patel, CEO
Alistair Gurney, CFO investorrelations@dotdigital.com (mailto:investorrelations@dotdigital.com)
Tel: 020 3405 0210
Alma Strategic Communications dotdigital@almastrategic.com
Hilary Buchanan
David Ison
Kieran Breheny
Tel: 020 7523 8000
Canaccord Genuity (Nominated Advisor and Joint Broker)
Bobbie Hilliam
Elizabeth Halley-Stott
Tel: 020 7220 0500
Cavendish Capital Markets Limited (Joint Broker)
Jonny Franklin Adams, Corporate Finance
Sunila de Silva, Equity Capital Markets
Tel: 020 7496 3000
Singer Capital Markets (Joint Broker)
Shaun Dobson, Corporate Finance
Alex Bond, Corporate Finance
About Dotdigital
Dotdigital Group plc (AIM: DOTD) is a leading provider of cross-channel
marketing automation technology to marketing professionals. Dotdigital's
customer experience and data platform (CXDP) combines the power of automation
and AI to help businesses deliver hyper-relevant customer experiences at
scale. With Dotdigital, marketing teams can unify and enrich their customer
data, identify valuable customer segments, and deliver personalised
cross-channel customer journeys that result in engagements, conversions, and
loyalty.
Founded in 1999, Dotdigital is headquartered in London with offices in
Manchester, New York, Melbourne, Sydney, Singapore, Tokyo, Amsterdam, Cape
Town, and Warsaw. Dotdigital's solutions empower over 4,000 brands across 150
countries.
Operational Review
We are pleased to report a period of positive trading in line with our
expectations, with continued growth in all geographic regions.
Despite challenging conditions in the Group's end markets, our enhanced
offering and the growing recognition of the significant ROI provided by our
products continue to underpin the strong demand across all regions.
Dotdigital delivered revenue growth of 10% to £42.4m (H1 24: £38.7m) on a
constant currency basis with adjusted profit before tax growth of 12% to
£10.0m (H1 24: £8.9m). The Group's high proportion of recurring revenues
continues to drive strong free cash flow generation, with the Group ending the
period with a net cash balance of £45.7m (H1 24: £37.1m).
The Group continues to land larger customers and higher-value deals within its
core mid-market segment while also seeing some adoption within the larger
enterprise space. Notable new customers signed in the period include Dreams,
Fujifilm, Kaplan Financial, Bodyshop Australia, Arena Leisure Racing, Moss
Motors, Best and Less and Fast Fitness Japan.
The Group made good progress in signing Fresh Relevance customers on a
standalone and joint (i.e. customers that select Dotdigital's core offering
alongside Fresh Relevance) basis, demonstrating the delivery of the cross and
up-sell benefits of the combination. These wins were primarily in EMEA, where
Fresh Relevance is already well established, and we are now beginning to roll
the enlarged offering out across North America and APAC with encouraging
initial uptake. Sector-wise, we have seen particular success in not-for-profit
and retail.
A priority for the first half has been execution of the Group's organic
product roadmap, with continuous upgrades and enhancements to strengthen the
platform and user experience. This includes the trial phase of the Group's
WhatsApp native channel, demonstrating positive ROI for customers, ahead of
the channel's expected full launch later in the year. Alongside this, the
Group continues to broaden its strategic technology partnerships, expanding
its market reach and complementing its direct sales strategy.
Alongside robust new customer acquisition, the Group saw continued increased
uptake across its large existing customer base. Functionality recurring
revenue increased by 15% to £17.2m, as customers expanded their use of
Dotdigital's CXDP. Reflecting its increasing usage, the Dotdigital platform
was used to send over 823m emails across Black Friday & Cyber Monday
weekend, up 15% on H1 24. In total, 3.5bn emails were sent across November, a
record for the Group. In tandem, approximately 79m SMS messages were sent in
November, up 20% on H1 24, and Black Friday/Cyber Monday SMS sends were up 22%
on H1 24.
Overall, SMS usage for the period increased 33% to 477m sends (H1 24: 358m),
though we expect this to normalise in FY 25 H2 back to mid-teen growth rates
due to specific marketing campaigns in H1 25. At the same time, the Group saw
a 10% increase in email sends from its platform on H1 24, up to 18.6bn (H1 24:
16.8bn).
Despite challenging economic conditions, long-term market drivers remain in
Dotdigital's favour. Among marketers, the demand for an all-in-one platform
for personalised, data-driven marketing campaigns is strong, with a
recognition of the tangible benefits and efficiencies it can achieve including
more effective campaigns, higher customer conversion and increased customer
loyalty.
Additionally, in the first half, the Group completed the infrastructure
migration of Fresh Relevance from Amazon Web Services to Microsoft Azure, to
align with the core Dotdigital CXDP platform. This paves the way for deeper
data integration opportunities while also optimising costs.
Trading in 2025 to date has been encouraging and reinforces our confidence
that FY 25 will be another year of solid progress, with a focus on continuing
to expand internationally and with larger customers.
In recognition of the Group's strong cash position, the Board continues to
assess options for selective acquisitions to enhance and broaden the Group's
proposition. As previously set out, the Group is exploring opportunities with
a broad focus on the following key categories: adjacent CXDP-related
technologies that will drive ARPC expansion and deepen our international
markets; for talent and brand to expand geographical coverage; and specialist
functionality for target verticals.
As announced on 28 January 2025, Chief Financial Officer Alistair Gurney has
informed the Board of his intention to step down from his role and the Board
in order to pursue a new business opportunity. Alistair will step down from
the Board on 30 April 2025 and will remain with the Group until the end of
June 2025 or an orderly transition is complete. The Group will provide an
update on Alistair's successor in due course.
Market
Overall, the global marketing automation market size was valued
(https://www.grandviewresearch.com/industry-analysis/marketing-automation-software-market#:~:text=Marketing%20Automation%20Market%20Size%20%26%20Trends,15.3%25%20from%202025%20to%202030.)
at USD $6.65 billion in 2024(1) and is expected to grow at a CAGR of 15.3%
from 2025 to 2030. Dotdigital operates within several strands of this broader
market, and is set to benefit from key trends such as the rise of automation
and data analytics.
Given the wider economic pressures in Dotdigital's end markets, there remains
an ongoing focus among marketers to generate ROI in their marketing spend. In
this respect, personalised marketing is increasingly recognised as a more cost
effective and impactful means to attract and retain customers.
This trend is underpinned by a growing focus on capturing and harnessing a
greater number of customer touchpoints, which enables hyper-personalised
marketing experiences and enhances predictive analytics and engagement. While
data remains key, our Hitting the Mark
(https://dotdigital.com/hitting-the-mark/) report, which analyses the
marketing performance of brands around the world, shows that, currently,
only 23% of brands collect zero-party data globally, with only 9% of brands
using data to personalise their campaigns, demonstrating the considerable
white space for further growth.
Equally, artificial intelligence has now firmly established itself as a
straightforward and cost-efficient tool for the creation and tailoring of
campaigns. Dotdigital's research
(https://dotdigital.com/resources/the-cmo-tracker/) shows this remains high on
the agenda for marketing investment, supported by third-party research
(https://business.linkedin.com/marketing-solutions/b2b-benchmark/2024) , which
shows a 20% increase in use of generative AI in 2024 by B2B marketers on the
prior year.
Market trends indicate a growing shift to mobile-first campaigns to reach a
generation of mobile-first consumers. WhatsApp is set to become an
increasingly important channel for marketers to engage with customers on a
one-to-one basis. Meanwhile, TikTok is emerging as a key platform for
marketers to reach a diverse, multi-generational audience.
Dotdigital's Global Benchmark Report
(https://dotdigital.com/global-benchmark-report/) for 2025 analysed
engagements across tens of billions of email and SMS campaigns from over 40
industries across the world to better understand what constitutes a typical
campaign. This report demonstrates the importance of maintaining continued
channel diversification across email and SMS in customer engagement.
(1)
https://www.grandviewresearch.com/industry-analysis/marketing-automation-software-market
(https://www.grandviewresearch.com/industry-analysis/marketing-automation-software-market)
Strategy
The Group's growth strategy centres around its three strategic pillars:
geographic expansion, product innovation, and building on our strategic
partnership relationships.
Geographic expansion
Regional breakdown reported in local currency
The Group is pleased to report growth in all regions.
EMEA, the Group's largest market, grew 7% to £31.3m. The addition of Fresh
Relevance's capabilities supported the acquisition of higher value deals in
the region, and cross-sells with existing customers. The Group added seven new
standalone Fresh Relevance clients in the period, along with 12 new joint
business wins.
This progress is supported by the increased use of data to drive enhanced and
relevant marketing campaigns, with the connection data siloes across
organisations becoming an increasing important factor in procurement
decisions. Liquidations and insolvencies of customers have decreased on prior
periods, contributing to a stabilisation of churn levels in Q2. While trading
conditions remain challenging, Dotdigital is benefiting from the continued
rationalisation of technology stacks across the market, which remains a high
priority for organisations looking to manage their costs and optimise their
marketing spend.
The Group saw a continuation of its progress in North America, with revenues
in the period growing 20% to $8.8m, aided during the period by wins with
larger customers. North America is an exciting opportunity for Dotdigital,
with a number of prospective customers across the mid and enterprise level
market. At the same time, North America also offers the prospect of winning a
greater number of global contracts for the Group. As we focus on developing
our sales and professional services teams in the second half, we expect to see
growing traction enabled by the additional capabilities from Fresh Relevance.
Looking ahead, we expect growth rates to normalise around the mid-teens level
for the medium term.
Revenues in APAC grew 19% to AUS $8.2m with particular success in Far East
Asia. The Group achieved several new deals driven by Fresh Relevance, with a
strong and growing pipeline of opportunity in the region. As previously
discussed, in line with the significant opportunity in Japan, the Group has
developed further support for its Japanese customers with specific campaign
templates and improvements to its in-app translation. The Far East market is
typically mobile-first, and we are excited by the opportunities our
investments into new mobile channels including WhatsApp and TikTok will bring.
Accordingly, the Group has further increased its investment in people and
R&D in Japan.
Product Innovation
With Fresh Relevance fully integrated and delivering efficiencies, the Group
advanced its product roadmap, focusing on the growing shift to mobile-first
consumer usage.
In this regard, Dotdigital has progressed in the launch of its native WhatsApp
channel which we feel will be a complementary channel to SMS. WhatsApp is
increasingly being implemented by Meta as a tool for business communication
and has the potential to generate a significant ROI for customers. Customers
will be able to use this channel in the same way as the existing SMS or email
channels, with features including self-service campaign management, two-way
chat, and user-friendly editing, all with simple reporting and segmentation.
The Group's native WhatsApp channel is currently in trial phase and is
expected to launch formally in April 2025. Early WhatsApp marketing campaigns
have been received positively, with praise for simplicity and ease of use.
These initial campaigns have seen high open rates of over 87%, with campaigns
demonstrating up to a 46x return on spend.
Another focus in the period was social integrations for lead generation and
re-targeting. The Group launched new TikTok and LinkedIn integrations, helping
marketers reach audiences through social media more effectively. This builds
on the Group's existing integrations with Facebook and Google Ads. These new
integrations enable re-targeting more engaged audiences on social media, and
by automatically pushing any leads captured on these social channels back into
automated follow-up campaigns in the Dotdigital platform. These integrations
enable customers to maximise their marketing spend, reduce costs, and tailor
campaigns for their specific audiences through the most appropriate channel.
To further enhance our customer experience, we have launched improved
e-commerce reporting, including new Revenue Per Recipient reporting as well as
enhancements to back in stock reporting and cross-account revenue reporting.
These features will enable customers to gain a deeper understanding of their
business performance.
In line with the demand for comprehensive and personalised data, Dotdigital
has further enhanced its platform through custom identifiers, a highly
sought-after feature that allows businesses to unify disparate customer data
points, such as email addresses, social media handles, and other identifiers
under a single, cohesive profile. This enables seamless customer recognition
across multiple touchpoints, improving engagement and personalisation.
The Group has increased its investment in the Innovations team to enhance
R&D efforts and explore the development of new complementary products and
capabilities. While at an early stage, we expect these developments to
contribute to ARPU expansion and provide the Group with competitive
differentiation.
Strategic Partnerships
The Group maintains a strong partnership programme, with over 660 active
agency partners and nearly 190 technology partners. New partnerships in the
period include a technology integration with CRM platform Razor's Edge, with
five customers now signed up via this partnership.
During the half, revenue through strategic partners grew 13% to £18.8m (H1
2024: £16.7m). Revenue from customers using the e-commerce connectors grew
12% in the period from £11.4m to £12.7m. Over the same period, we also saw
strong growth in sales from customers using the CRM connectors, up 14% in the
period from £5.3m to £6.1m.
The Group continues to explore new opportunities for partnerships to
complement its direct sales channel and increase its brand awareness.
Current trading and outlook
Trading momentum has continued into the second half to date. The Group's focus
remains on enhancing its product offering, with the launch of its WhatsApp
native channel set to be an important means to attract new customers and
deepen relationships with existing ones.
With the opportunity in all geographic regions remaining substantial,
supported by large and growing pipelines, the Board is confident in the
Group's ability to continue to execute against its stated strategy and is on
track to meet market expectations for FY 25.
In view of its strong cash position and focus on accelerating and enhancing
its CXDP offering, the Board continues to appraise acquisitions that will
augment and broaden its capabilities.
6 months 6 months 12 months
to 31 Dec 2024 to 31 Dec 2023 to 30 June 2024
Unaudited Unaudited Audited
Note £'000s £'000s £'000s
Revenue from contracts with customers 4 42,365 38,745 78,973
Cost of sales (9,258) (8,022) (16,177)
Gross profit 4 33,107 30,723 62,976
5 390 - -
Other Income
Administrative expenses (24,269) (22,358) (47,222)
Operating profit from operations pre share based payments, amortisation of 9,228 8,365 15,574
acquired intangibles and exceptional costs
(477) (364) (1,219)
Share based payments
Amortisation of acquired intangibles (893) (571) (1,462)
Exceptional costs 8 (273) (629) (973)
Operating profit 7,585 6,801 11,920
Finance income 852 608 1,351
Finance costs (77) (27) (88)
Profit before income tax 8,360 7,382 13,183
Income tax expense (2,054) (1,346) (2,117)
Profit for the period attributable to the owners of the Company 6,306 6,036 11,066
Earnings per share (pence per share)
Basic 7 2.05 1.99 3.62
Diluted 7 2.00 1.95 3.54
Adjusted basic 7 2.58 2.50 4.82
Adjusted diluted 7 2.52 2.46 4.71
Dotdigital Group Plc
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2024
6 months 6 months 12 months
to 31 Dec 2024 to 31 Dec 2023 to 30 June 2024
Unaudited Unaudited Audited
note £'000s £'000s £'000s
Profit for the period 6,306 6,036 11,066
Other comprehensive (expense)/income
Items that may be subsequently reclassified to
profit and loss:
Exchange differences on translating foreign operations (3) (42) (27)
Total comprehensive income attributable to:
Owners of the parent 4 6,303 5,994 11,039
Dotdigital Group Plc
Consolidated Statement of Financial Position
As at 31 December 2024
Note As at As at As at
31 Dec 31 Dec 30 June
2024 2023 2024
Unaudited Unaudited Audited
£'000s £'000s £'000s
Assets
Non-current assets
Goodwill 22,278 22,175 22,278
Intangible assets 37,578 37,236 37,556
Property, plant and equipment 2,404 2,276 3,568
62,260 61,687 63,402
Current assets
Trade and other receivables 18,429 17,050 18,011
Tax recoverable 584 - -
Cash and cash equivalents 45,681 37,149 42,160
64,694 54,199 60,171
Total assets 4 126,954 115,886 123,573
Equity attributable to the owners of the parent
Called up share capital 10 1,538 1,536 1,538
Share premium 12,786 12,786 12,786
Reverse acquisition reserve (4,695) (4,695) (4,695)
Share-based payment reserve 3,144 2,225 2,835
Retranslation reserve 228 216 231
Retained earnings 89,024 80,292 82,505
Total equity 102,025 92,360 95,200
Dotdigital Group Plc
Consolidated Statement of Financial Position
As at 31 December 2024
As at As at As at
31 Dec 2024 31 Dec 2023 30 June 2024
Unaudited Unaudited Audited
£'000s £'000s £'000s
Liabilities
Non-current liabilities
Lease liabilities 1,449 1,153 2,334
Deferred tax 5,748 6,688 6,330
7,197 7,841 8,664
Current liabilities
Trade and other payables 17,729 14,743 18,348
Lease liabilities 453 634 746
Current tax payable - 308 615
17,732 15,685 19,709
Total liabilities 24,929 23,526 28,373
Total equity and liabilities 126,954 115,886 123,573
Dotdigital Group Plc
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2024
Share Share Reverse Share-based Re-translation Retained Total
capital premium Acquisition Payment Reserve Earnings
Reserve Reserve
£'000s £'000s £'000s £'000s £'000s £'000s £'000s
As at 1 July 2023 1,496 7,124 (4,695) 2,591 258 73,536 80,310
Profit for the period - - - - - 6,036 6,036
Retranslation reserve - - - - (42) - (42)
Issue of share capital 40 5,662 - - - - 5,702
Reserve Transfer - - - (720) - 720 -
Deferred tax on share options - - - 6 - - 6
Share based payments - - - 348 - - 348
As at 31 December 2023 1,536 12,786 (4,695) 2,225 216 80,292 92,360
As at 1 January 2024 1,536 12,786 (4,695) 2,225 216 80,292 92,360
Profit for the period - - - - - 5,030 5,030
Dividends - - - - - (3,066) (3,066)
Retranslation reserve - - - - 15 - 15
Issue of share capital 2 - - - - - 2
Reserve Transfer - - - (249) - 249 -
Deferred tax on share options - - - 10 - - 10
Share based payments - - - 849 - - 849
As at 30 June 2024 1,538 12,786 (4,695) 2,835 231 82,505 95,200
As at 1 July 2024 1,538 12,786 (4,695) 2,835 231 82,505 95,200
Profit for the period - - - - - 6,306 6,306
Retranslation reserve - - - - (3) - (3)
Reserve transfer - - - (213) - 213 -
Deferred tax on share options - - - 48 - - 48
Share based payments - - - 474 - - 474
As at 31 December 2024 1,538 12,786 (4,695) 3,144 228 89,024 102,025
· 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.
· Share-based payment reserve relates to the charge for the
share-based payments in accordance with International Financial Reporting
Standard 2. The reserve transfer in the period relates to lapsed share
options.
· 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 2024
6 months 6 months
to 31 Dec 2024 to 31 Dec 2023 12 months to 30 June 2024
Unaudited Unaudited Audited
note £'000s £'000s £'000s
Cash flow from operating activities 9 12,103 9,078 23,212
Interest paid (77) (27) (88)
Tax paid (3,787) (1,295) (2,057)
Net cash generated from operating activities 8,239 7,756 21,067
Cash flow from investing activities
Purchase of subsidiary net of cash acquired - (18,325) (18,325)
Additional consideration for repayment of debts at acquisition - (607) (607)
Purchase of intangible fixed assets (5,033) (4,365) (9,709)
Purchase of property, plant and equipment (60) (65) (195)
Interest received 852 608 1,351
Net cash used in investing activities (4,241) (22,754) (27,485)
Cash flows from financing activities
Equity dividends paid - - (3,066)
Payment of leasing liabilities (474) (493) (1,012)
Proceeds from share issues - 6 7
Net cash used in financing activities (474) (487) (4,071)
Increase/(Decrease) in cash and cash equivalents 3,524 (15,485) (10,489)
Cash and cash equivalents at beginning of period 42,160 52,676 52,676
Effect of foreign exchange rate changes (3) (42) (27)
Cash and cash equivalents at end of period 45,681 37,149 42,160
Dotdigital Group Plc
Notes to interim financial statements
For the six months ended 31 December 2024
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 statements have been prepared in
accordance with UK-adopted International Accounting Standards ('IAS') 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 2024. The interim financial information for the six months to 31 December
2024, which complies with IAS 34 'Interim Financial Reporting' has been
approved by the Board of Directors on 24 February 2025.
The unaudited interim financial information for the period ended 31 December
2024 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
2024 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 Section 498 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 2024, as described in those
financial statements.
4. SEGMENTAL REPORTING
The Group's single line of business is the provision of data-driven
omnichannel marketing automation. The chief operating decision maker considers
the Group's reportable segments to be by geographical location this being
EMEA, US and APAC operations as shown below:
Geographical revenue and results
6 months to 31 December 2024
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 31,346 6,801 4,218 42,365
Gross profit 23,138 6,074 3,895 33,107
Profit before income tax 6,953 1,062 345 8,360
Total comprehensive income attributable to the owners of the parent 4,724 990 589 6,303
Financial position
Total assets 116,634 9,061 1,259 126,954
Net current assets 43,128 3,060 774 46,962
6 months to 31 December 2023
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 29,295 5,853 3,597 38,745
Gross profit 22,247 5,232 3,244 30,723
Profit/(Loss) before income tax 7,073 524 (215) 7,382
Total comprehensive income attributable to the owners of the parent 5,721 504 (231) 5,994
Financial position
Total assets 105,785 7,087 3,014 115,886
Net current assets 32,025 4,678 1,811 38,514
6 months to 31 December 2023
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 29,295 5,853 3,597 38,745
Gross profit 22,247 5,232 3,244 30,723
Profit/(Loss) before income tax 7,073 524 (215) 7,382
Total comprehensive income attributable to the owners of the parent 5,721 504 (231) 5,994
Financial position
Total assets 105,785 7,087 3,014 115,886
Net current assets 32,025 4,678 1,811 38,514
4. SEGMENTAL REPORTING (CONTINUED…)
12 months to 30 June 2024
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 59,731 12,082 7,160 78,973
Gross profit 45,576 10,737 6,483 62,796
Profit/(Loss) before income tax 12,390 1,159 (366) 13,183
Total comprehensive income
attributable to the owners of the parent 10,690 991 (642) 11,039
Financial position
Total assets 113,894 8,552 1,127 123,573
Net current assets 36,777 2,843 842 40,462
5. OTHER INCOME
During the period ended 31 December 2024 the Group moved to the merged RDEC
scheme, resulting in an above the line credit being recognised in other
income. In the prior period the Group claimed for R&D relief under the
SME scheme, which resulted in a below the line tax benefit.
6. DIVIDENDS
The proposed final dividend of £3,375,000 for the year ended 30 June 2024 of
1.10p per share was paid on 31 January 2025.
7. EARNINGS PER SHARE
Earnings per share data is based on the consolidated profit using 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. Adjusted earnings per share is based on the consolidated profit
deducting the acquisition related exceptional costs and share-based payment.
A number of non-IFRS adjusted profit measures are used in the annual report
and financial statements and in these interim financial statements. Adjusting
items are excluded from our headline performance measures by virtue of their
size and nature, in order to reflect management's view of the performance of
the Group. Summarised below is a reconciliation between statutory results to
adjusted results. The Group believes that alternative performance measures
such as adjusted EBITDA are commonly reported by companies in the markets in
which it competes and are widely used by investors in comparing performance on
a consistent basis without regard to factors such as depreciation and
amortisation, which can vary significantly depending upon accounting methods
(particularly when acquisitions have occurred) or based on factors which do
not reflect the underlying performance of the business. The adjusted profit
after tax earnings measure is also used for the purpose of calculating
adjusted earnings per share.
7. EARNINGS PER SHARE (CONTINUED…)
Reconciliations to earnings figures used in arriving at adjusted earnings per 6 months to 31 December 2024 6 months to 12 months to
share are as follows:
31 December 2023 30 June
2024
£'000s £'000s £'000s
Profit for the year attributable to the owners of the parent 6,306 6,036 11,066
Amortisation of acquisition-related intangible fixed asset 893 571 1,462
Other exceptional costs 273 629 973
Share-based payment 477 364 1,219
Adjusted profit for the year attributable to the owners of the parent 7,949 7,600 14,720
Management does not consider the above adjustments to reflect the underlying
business performance.
6 months 6 months 12 months
to 31 Dec to 31 Dec to 30 June
2024 2023 2024
Unaudited Unaudited Audited
Earnings per Ordinary share:
Basic (pence) 2.05 1.99 3.62
Diluted (pence) 2.00 1.95 3.54
Adjusted basic (pence) 2.58 2.50 4.82
Adjusted diluted (pence) 2.52 2.46 4.71
6 months to 31 Dec 2023 12 months to 30 June 2024
6 months to 31 Dec 2024
Unaudited Unaudited Audited
£'000s £'000s £'000s
Profit for the period
for the purpose of earnings
per share: 6,306 6,036 11,066
Basic 7,949 7,600 14,720
Adjusted
7. EARNINGS PER SHARE (CONTINUED…)
Weighted average number of shares in issue as follows:
6 months to 31 Dec 2023 12 months to 30 June 2024
6 months to 31 Dec 2024
Unaudited Unaudited Audited
Weighted average number
Basic 307,508,354 303,546,425 305,472,095
Diluted 315,789,638 309,341,173 312,664,393
The adjusted profit for the period, adjusted basic earnings per ordinary share
and adjusted diluted earnings per ordinary share exclude exceptional costs
£273,000 (2023: £629,000, FY24: £973,000), amortisation of acquired
intangibles £893,000 (2023: £571,000, FY24: £1,462,000) and share based
payments £477,000 (2023: £364,000, FY24: £1,219,000).
8. EXCEPTIONAL COSTS
Exceptional costs relate to the surrender of a lease £264,000
(2023: £nil, FY24 £nil), professional fees related to the valuation of
share options and review of long-term incentive plan of £5,000 (2023:
£9,000, FY24 £11,000), professional acquisition and due diligence fees
£4,000 (2023: £477,000, FY24: £389,000), employers NI paid on the exercise
of LTIPs by a member of the leadership team £nil (2023: £143,000, FY24:
£143,000) and severance payment as a result of a departmental restructure
£nil (2023: £nil, FY24: £430,000).
9. RECONCILIATION OF PROFIT BEFORE INTEREST AND CORPORATION TAX TO NET CASH
GENERATED FROM OPERATIONS
6 months 6 months 12 months
to 31 Dec to 31 Dec 2023 to 30 June 2024
2024
Unaudited Unaudited Audited
£'000s £'000s £'000s
Profit before tax from all operations 8,360 7,382 13,183
Adjustments for:
Amortisation 5,011 4,123 9,142
Depreciation 481 525 985
Share-based payments 474 348 1,197
Finance lease non-cash movement 37 118 265
Finance income (852) (608) (1,351)
Finance expense 77 27 88
Increase in trade receivables (418) (997) (1,941)
(Decrease)/increase in trade payables (1,067) (1,840) 1,644
Net cash from operations 12,103 9,078 23,212
10. CALLED UP SHARE CAPITAL
During the period no shares were issued.
The issued share capital as at 31 December 2024 was 307,508,354 Ordinary
Shares of £0.005 per share (2023: 307,257,960 Ordinary Shares of £0.005 per
share, FY24: 307,508,354 Ordinary Shares of £0.005 per share).
11. 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:
12 months
6 months 6 months to 30 June 2024
to 31 Dec 2024
to 31 Dec 2023
Unaudited Unaudited Audited
£'000s £'000s £'000s
Aggregate emoluments 439 401 1,288
Share-based payments on the LTIP options granted 89 114 313
Company contributions to money purchase pension scheme 17 13 27
545 528 1,628
During the year ended 30 June 2024, the Chief Executive Officer was granted a
PSP award over 626,787 shares while the Chief Finance Officer was granted an
award over 346,382 PSP shares. These become exercisable subject to continued
service and the Company's relative three-year total shareholder return and
earnings per share in respect of the year ending 30 June 2026.
12. SUBSEQUENT EVENTS TO 31 DECEMBER 2024
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.
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