REG - dotDigital Group plc - Full Year Results
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RNS Number : 0155G dotDigital Group plc 04 November 2025
Dotdigital Group plc
("Dotdigital" or the "Group")
Full Year Results
Year of organic growth, enhanced profitability and significant product
advancement aligned to market demand
Dotdigital Group (AIM: DOTD), the leading SaaS provider of an AI-powered
customer experience and data platform for intelligent, personalised marketing
engagement at scale, announces its final audited results for the year ended 30
June 2025 ("FY25").
Financial Highlights
· FY25 revenue performance in line and profitability performance slightly ahead
of market expectations(1).
· Group revenue increased 6% to £83.9m (FY24: £79.0m); 7% on a
constant-currency basis; driven by organic growth.
o Recurring and repeating revenue represented 94% of total (FY24: 94%);
contracted recurring was 80% of Group revenue (FY24: 79%).
o Average revenue per customer (ARPC) increased 8% on a constant-currency,
normalised basis to £1,923 per month (FY24: £1,781 normalised).
· Forward looking ARR growth totalling 14% (or 9% on an organic basis) to
£72.6m (FY24: £63.6m) in our core CXDP business.
· Adjusted EBITDA up 10% to £26.8m (FY24: £24.3m).
· Adjusted profit before tax up 13% to £19.0m (FY24: £16.8m).
· Adjusted diluted EPS up 2% to 4.80p (FY24: 4.71p).
· Cash balance of £36.2m at 30 June 2025 (30 June 2024: £42.2m), after the
$20m initial cash payment for the Social Snowball acquisition in late June
2025 and continued strong cash generation.
· Proposed final dividend of 1.21p per ordinary share (FY24: 1.10p) in line with
progressive dividend policy.
Operational Highlights
· Growth in every region with revenues from international regions increasing to
33% of Group (FY24: 32%) with North America and APAC delivering c. 20% growth
in local currency.
· Leading new global logos added, including Science in Sport, the QCA, KFC, New
York Botanical Gardens, The Royal National Ballet, FujiFilm, The Body Shop and
BBC Children in Need.
· Functionality recurring revenue(2) increased by 12% on a constant currency
basis to £35.5m (FY24: £31.6m), supported by new customer growth and
existing customers expanding usage of the platform as new capabilities are
introduced.
· Acquisition of Social Snowball (June 2025) added influencer, affiliate and
referral marketing capability, immediately earnings-enhancing, with a strong
Shopify footprint and clear cross-sell potential. Post acquisition, ARR growth
is approximately 50% to date on an annualised basis.
· Product innovation: continued investment in AI and data; expansion of Winston
AI; additional platform enhancements including improved data capability,
reporting and connectivity to business systems.
· WhatsApp fully launched in April 2025 and now generating revenue, with more
than 30 customers adopting the functionality across regions.
· Fresh Relevance fully integrated, strengthening personalisation and helping to
secure higher-value wins and cross-sell.
· Partner ecosystem: revenue from customers using named technology connectors
increased 8% to £37.0m, with notable growth in Shopify, Netsuite and
Salesforce.
Outlook
· The Group is well positioned to deliver results in line with full-year market
expectations for FY26.
· Strong market tailwinds as demand shifts to integrated platforms, like
Dotdigital, that can leverage automation and AI to deliver increased
efficiency, reduced complexity, improved consumer experience and clear ROI.
· The Group entered FY26 with a broader product suite, higher-value pipeline and
expectation of continued sustainable growth and strong cash generation.
Milan Patel, CEO of Dotdigital, said:
"We are pleased to report another year of profitable growth alongside
meaningful progress on our platform strategy. New customer wins were
complemented by consistently high retention and expansion within our existing
base, underscoring the strategic value clients place on our platform as the
foundation of their digital marketing strategy.
Customers are consolidating around fewer, more capable systems and demanding
clear returns; we are meeting that need. With advances in AI, data and mobile
messaging, the addition of Social Snowball and the integration of Fresh
Relevance, our CXDP is broader and more valuable than ever.
With market conditions improving, our pipeline is healthy, our balance sheet
is strong and our partner network continues to expand. We enter the new
financial year focused on disciplined execution: expanding usage, growing
internationally and delivering innovation that drives measurable outcomes for
our customers."
1 Consensus market expectations for the year to 30 June 2025 were: Revenue
£83.9m; Adjusted EBITDA £26.0m; Adjusted PBT £18.3m; Adjusted EPS 4.7p; DPS
1.2p.
(2) Functionality recurring revenue refers to the value charged to customers
for the core software platform and functionality, excluding contracted or
transactional based revenue in relation to communication volumes.
Analyst Briefing
Management will host an in-person-only briefing and Q&A for analysts today
at 9am UK time. To register to attend, please contact
dotdigital@almastrategic.com (mailto:dotdigital@almastrategic.com) .
Investor Presentation
Management will host a virtual investor presentation and Q&A via the
Investor Meet Company platform on Thursday 6 November at 12.00 GMT. Investors
can sign up for free and follow Dotdigital here
(https://www.investormeetcompany.com/companies/dotdigital-group-plc) .
A copy of the Results Presentation and FY25 Annual Report will be available on
our website (https://dotdigitalgroup.com/) shortly.
Contacts
Dotdigital Group plc +44 (0)20 3953 3072
Milan Patel, CEO investorrelations@dotdigital.com (mailto:investorrelations@dotdigital.com)
Tom Mullan, CFO
Alma Strategic Communications +44 (0)20 3405 0210
Hilary Buchanan dotdigital@almastrategic.com (mailto:dotdigital@almastrategic.com)
David Ison
Sarah Peters
Canaccord Genuity (Nominated Adviser and Joint Broker) +44 (0)20 7523 8000
Bobbie Hilliam
Elizabeth Halley-Stott
Cavendish Capital Markets Limited (Joint Broker) +44 (0)20 7220 0500
Jonny Franklin-Adams, Corporate Finance
Sunila de Silva, Equity Capital Markets
Singer Capital Markets (Joint Broker) +44 (0)20 7496 3000
Shaun Dobson
Jen Boorer
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, Southampton, New York, Melbourne, Sydney, Singapore, Tokyo, Warsaw
and Cape Town. Dotdigital's solutions empower over 4,000 brands across 150
countries.
Chairman's Statement
Financial year 2025 (FY25) was a year of encouraging delivery against the
strategy, combining solid financial performance with further strengthening of
the platform and development of the organisation to prepare it for global
scaling in the years to come.
Profitable growth and strategic progress
We delivered growth across all regions, with international markets the
standout. North America was particularly strong, while APAC achieved sustained
double-digit growth supported by continued investment in product and people on
the ground. We also delivered a solid performance in EMEA, albeit at lower
growth rates than previously experienced, pleasingly this was more than offset
by the acceleration overseas. It was encouraging to broadly maintain
Group-level growth across a period of softer conditions for much of the wider
software sector, including for many of our significantly larger competitors,
reflecting the strength and resilience of our model.
Selective acquisitions remain a core component of our strategy. The addition
of Social Snowball at the end of our financial year is both strategically and
financially important and broadens our capability into the influencer,
affiliate and referral marketing space, and strengthens our presence in the
Shopify ecosystem. This follows the integration of our acquisition of Fresh
Relevance in financial year 2024 (FY24), which deepened our personalisation
offering and has contributed to higher-value customer wins. We will continue
to assess opportunities that are earnings enhancing, strategically aligned and
fairly valued, recognising the benefits that come from adding adjacent
capabilities to an increasingly coherent platform.
Alongside this, we continued to build out our Customer Experience Data
Platform (CXDP), unifying data, personalisation and communications into a
connected suite that is easier to adopt and scale. Our investment in Winston
AI continues to benefit our customers, with capabilities continuously being
added and adopted. We will continue to invest in research and development
(R&D) with spend being directed towards Winston AI, as well as driving AI
adoption throughout our own operations. With over 250 integrations now in
place and new channels such as WhatsApp launched, customers can access richer
insights and deliver more tailored campaigns. These developments deepen
adoption across our base, enhance retention and reinforce Dotdigital's
position as a differentiated, future-ready platform.
High-quality financial model
Our financial model remains a key strength and differentiator. With 94%
recurring or repeating revenue and c. 80% contracted, we enjoy high levels of
visibility and resilience, supporting attractive margins and do not chase
non-profitable business. With strong cash generation and a robust balance
sheet, we are committed to continuing to reinvest in innovation while funding
selective acquisitions that bolster our product offering and enhance our
long-term opportunity.
Strengthened executive
During the period, we strengthened our leadership with the appointment of Tom
Mullan as Chief Financial Officer. Tom brings significant public tech company
and international software sector experience that will support the Group's
financial discipline, scalability and M&A ambitions.
We are in the process of appointing a Chief Revenue Officer, a new role
designed to centralise and align our go-to-market activities across regions
and with an emphasis on expansion, retention and enhancing lifetime value.
Together, these appointments will deepen the expertise of the executive team,
enhance operational execution and ensure the Group is well positioned to
capture the opportunities ahead.
ESG in action
We continued to advance our sustainability agenda during the year, building
upon strong foundations, and remain on track to achieve our Net Zero 2030
objective. From a social standpoint, we continue to focus on our people and
their communities. It's encouraging to see the increased uptake of the
government-backed electric vehicle scheme from our UK employees as well as
strong participation across our global teams in dotCommunity initiatives to
give back to local communities.
Growing momentum and increasing opportunity
With each year that passes, the opportunity for Dotdigital increases.
Organisations increasingly want the highest-quality products, cutting-edge
capabilities and demonstrable ROI. At the same time, there is a growing trend
towards rationalising their technology stack to fewer providers. With Fresh
Relevance and now Social Snowball, alongside the stellar work of our R&D
teams introducing new functionality and bolstering existing features, we are
uniquely positioned to respond, with a broad, independent platform that meets
the needs of marketers globally now and tomorrow.
On behalf of the Board, I would like to thank our employees for their
commitment and energy this year amid a challenging macroeconomic backdrop, to
our customers for choosing us and to our shareholders for their continued
support. We are making steady progress as we move through the new financial
year; our integrated platform has significant strategic value as the industry
evolves, and we have a clear plan to enhance it further and increase
penetration across marketers globally. We look to the future with confidence.
CEO's Report
Overview
Dotdigital delivered yet another year of resilient progress and strong cash
generation. We grew in every region, with international revenue now accounting
for 33% of Group revenue (FY24: 32%). North America delivered the strongest
growth in absolute value terms, APAC continued to build as we ramped up
localisation, and EMEA remained our anchor for scale and stability while
delivering a solid performance. Our execution centred on expanding usage and
retention through disciplined implementations and customer success, and a
continued focus of driving new logo wins in international regions.
Our Customer Experience and Data Platform (CXDP) advanced at pace. We
strengthened Winston AI, expanded data and reporting capabilities, and
broadened connectivity across social and commerce ecosystems. WhatsApp moved
from trial to full launch and is already in production with customers across
regions, reinforcing our position in mobile messaging. These enhancements are
being adopted steadily as customers look to augment their engagement
strategies and seek measurable return on investment.
The acquisition of Social Snowball just before the end of the period adds
high-growth influencer, affiliate and referral capability while bolstering the
Group's presence in the Shopify ecosystem. Fresh Relevance, acquired in FY24,
is now fully embedded and performing, deepening our personalisation capability
and helping us win and expand higher-value accounts. In the year we also
expanded the go-to-market strategies for our personalisation capabilities into
international markets. Together, these acquisitions broaden our addressable
market and create clear opportunities to expand average revenue per customer,
increase customer retention and win higher value customers.
Operational discipline remained a priority throughout, strengthening our
long-term prospects. We focused on accelerating onboarding so customers
realise value sooner, stepped away from a lower margin contract that would
have become loss-making, and continued to invest selectively in product and
go-to-market where we see the most attractive returns.
With a strong balance sheet, a comprehensive product suite and an expanding
partner ecosystem, we enter the new financial year with measured confidence,
underpinned by a highly recurring, contracted revenue base.
Results
Group revenue increased to £83.9m (FY24: £79.0m), up 6% on an actual
currency basis and 7% on a constant currency basis, driven by organic growth.
Recurring and repeating revenue represented 94% of total revenue, consistent
with FY24, and 80% of Group revenue was high margin CXDP and related
contracted recurring (FY24: 79%). Gross profit was £66.6m at a margin of 79%,
consistent with the prior year.
Profitability was slightly ahead of market expectations. Adjusted EBITDA
increased to £26.8m (FY24: 24.3m) and adjusted profit before tax to £19.0m
(FY24: £16.8m). Adjusted diluted EPS was 4.80p (FY24: 4.71p) slightly ahead
of market expectations.
Integration synergies from Fresh Relevance were delivered as planned, and the
exit from competitor resellers improved revenue quality with a modest ARR
impact already reflected in the year.
Cash generation remained strong. The cash balance at 30 June 2025 was £36.2m,
after the $20m initial cash payment for the Social Snowball acquisition and
continued cash inflow. The Board intends to pay an increased final dividend in
line with adjusted EBITDA growth. The balance sheet supports ongoing
investment in product and go-to-market, together with selective,
earnings-enhancing acquisitions.
Business Review
Our product offering
Dotdigital's AI powered platform gives marketers a single suite of products
based upon real-time data to connect with their customers more effectively. We
help our customers create and manage automated personalised communications and
understand customer behaviour across multiple channels. Key elements of the
suite include:
- Core CXDP - underpinned by unified data and analytics, our core offering
provides marketers a single place to design, deliver and measure personalised
end customer journeys.
- Comms and channels - technology delivering communications via email, SMS and
MMS, WhatsApp, social media channels, app push, on-site personalisation,
landing pages and forms, with unrivalled delivery success. These capabilities
are all extensions, leveraging the power of our core CXDP platform.
- Personalisation - originally acquired with our acquisition of Fresh Relevance
in FY24, this enables web personalisation capabilities for our customers to
provide to their audience. Customers can either use this technology as an
extension to our core CXDP or on a standalone basis.
- Influencer and affiliate marketing - acquired with our late June 2025
acquisition of Social Snowball, providing customers with the technology to
seamlessly manage their influencer, affiliate and referral programmes so
brands can move from single campaigns to orchestrated, data-led engagement
that is easy to evidence and optimise.
Our WinstonAI offering is embedded within and underpins the suite, enabling
our customers to amplify their results whilst driving efficiencies.
In addition to our core product offerings, we have a smaller number of
heritage customers, using the originally acquired SMS communications offering
on an API-only basis without the power of our CXDP. This CPaaS or
transactional messaging business generates high-volume, largely repeatable
revenues, albeit at lower margins.
Market Opportunity
Marketing teams are operating with increased scrutiny on outcomes. Buyers want
clear, defensible ROI, simpler stacks and faster time to value. That
environment favours platforms that unify data and channels, reduce handoffs
and make performance obvious. Dotdigital's CXDP is built for this shift: a
single place to bring customer data together, orchestrate journeys across
email, SMS, WhatsApp, app push and web, and evidence results in one view.
Rather than adding more tools, organisations are prioritising fewer,
interoperable enterprise grade systems that plug into existing commerce and
CRM platforms and can be rolled out across brands and regions without the risk
of a single global 'rip and replace' implementation process. Our breadth of
native channels and deep connector set - now extended with Fresh Relevance for
web personalisation and Social Snowball for influencer, affiliate and referral
programmes - positions the Group as a practical consolidation choice for
mid-market and enterprise customers.
AI is now expected to make a tangible impact. Marketers expect measurable
gains in speed, quality and return on investment, not gimmicks or
window-dressing. Our 15+ years of investment into AI, culminating in the
launch of WinstonAI in 2023, along with our reporting enhancements, meet that
brief; assisting with content, imagery and analysis inside existing workflows,
while the underlying platform enables predictive and real-time use cases as
customers mature. Our AI functionality delivers both stronger ROI for our
customers as well as creating efficiencies within the Marketing department.
Customer engagement continues to lean towards mobile-first, with messaging
apps and social platforms becoming core to how brands reach and retain
audiences. Our native WhatsApp, expanding mobile messaging and social
integrations allow customers to meet users where they are, while keeping zero-
and first-party data and attribution inside the CXDP.
Taken together, these trends play to Dotdigital's strengths: a unified,
extensible platform, clear routes to value and an ecosystem that helps
customers achieve more with less complexity.
M&A Strategy: Social Snowball
Social Snowball provides influencer, affiliate and referral capability with an
analytics-first design that attributes creator activity to revenue. This
broadens the CXDP, expands our total addressable market and creates tangible
opportunities to increase ARPC through targeted cross-sell.
Acquired in June 2025 for up to $35m, being an initial cash payment of $20m
and maximum deferred consideration of $15m (funded from existing cash
resources), the business was immediately earnings-enhancing. It reported 200%
revenue growth in FY24 to $3m and entered 2025 cash-flow positive with
run-rate revenues above $5m at the time of acquisition. Since completion, ARR
has risen to approximately $6m, supported by strong merchant engagement across
a base of 1,500+ Shopify brands including Crocs, G Fuel, Blume, Sharma Brands
and True Classic.
As we have entered FY26, back- and middle-office functions have been
onboarded, and product integration is progressing so that creator programmes
can be planned and measured within Dotdigital alongside existing channels with
unified reporting.
Go-to-market remains focused on Shopify through a dedicated team where there
is a significant scope for further expansion across its brand network,
complemented by a growing flow of referrals from Dotdigital customers.
Progress Against Organic and Select Acquisitive Growth Strategy
Our strategy is consistent and focused on three organic growth pillars:
Geographic Expansion, Product Innovation and Partnerships. We target the
mid-market while serving larger enterprises, across commerce and selected
non-commerce verticals. A broad ecosystem of commerce, CRM and data
integrations means quicker results and wider adoption. The business model is
predominantly recurring subscription revenues, with multi-year contracts
priced by selected modules, data volumes and messaging usage. Growth is driven
by new customer wins and by increasing average revenue per customer through
additional functionality and products, channels and integrations, supported by
selective, earnings-enhancing acquisitions that strengthen the platform.
Geographic Expansion
Regional revenue and growth are shown in local currency. Recurring revenue
growth rates are on a constant-currency basis.
We delivered growth across all regions in the period. Performance reflected
disciplined execution of our geographic plan, namely focusing on our core
commerce target customer profile, expanding global brands across markets and
driving platform adoption to support net retention. Headline growth also
reflects the previously reported increase in customer administrations in the
first half and our decision in the second half to exit a low-margin contract
to strengthen revenue quality.
We expect solid double-digit international growth in FY26, driven by expansion
with global brands and a continued focus on adoption and retention.
EMEA
Revenue grew 3% to £61.5m (FY24: £59.7m), in spite of headwinds incurred as
a result of the planned exit from specific competitor resellers within Fresh
Relevance and the previously announced Board's decision not to renew the low
margin CPaaS contract due to unprofitable pricing requirements. Through the
year we leaned into implementations and deeper CXDP adoption to improve
retention as trading conditions remained mixed. Fresh Relevance continued to
drive higher-value work across the region, with joint go-to-market activity
converting both new logos and cross-sell. Procurement cycles increasingly
favoured vendors that can break down data siloes and simplify stacks, a trend
that played to our strengths and supported steady progress across enterprise
and mid-market accounts.
North America
Revenue increased 19% to US$18.2m (FY24: US$15.2m). Growth was driven by
expanded usage within existing accounts and wins with larger customers,
consistent with the progress delivered in the first half. The region now has a
clearer path to land-and-expand across mid and enterprise commerce, supported
by strengthened customer success and solutions consulting. Fresh Relevance was
brought to market in the region late in the year and added to our credibility
in data-led personalisation, helping us compete for multi-brand and global
mandates. We continue to view North America as a significant opportunity, with
growth expected to track in the mid-teens over the medium term.
APAC
Revenue rose 20% to A$16.6m (FY24: A$13.8m). APAC remains a largely
mobile-first region. Localisation remained a differentiator: in Japan; we
expanded in-app translation, introduced regional templates and added local
delivery expertise, which shortened time to value and improved conversion.
Fresh Relevance supported several wins and the pipeline continues to grow,
while investments in people and R&D in Japan positioned us to capitalise
on rising demand for WhatsApp, app push and social integrations such as
TikTok.
Product Innovation
We strengthened the CXDP offering during the period with a series of
high-impact releases.
We made significant additions and enhancements to WinstonAI in the year,
including the release of in-campaign language translation and AI-powered image
search. Adoption statistics across the AI platform have all increased
significantly and, particularly of note, AI email campaign translation was
responsible for £100k+ wins in Europe and Japan.
WhatsApp progressed from trial to wider revenue generating usage. More than 50
brands have trialled the channel, with retention of approximately 80% amongst
adopters, while well-targeted campaigns have achieved open rates of up to 95%.
WhatsApp functionality is currently only available on our premium packages,
which we are encouraged to see is beginning to drive package upgrades to CXDP.
Further enhancements in our data capabilities have been released, including
strengthening firehose capabilities to Amazon S3, SFTP and Snowflake (beta).
We also completed the Personalisation (Fresh Relevance) integration and
launched joint roadmap items that simplify activation, including a unified
script with Dotdigital, Shopify Marketplaces support and high-resolution image
handling. These improvements allow teams to run web personalisation alongside
email and mobile with one set of data and reporting capabilities.
Connectivity broadened so that customers can activate data faster and reach
audiences across more social channels, including TikTok and LinkedIn, building
on existing connections to Facebook and Google.
Looking ahead to FY26, we will continue to strengthen the CXDP and extend our
lead in AI. Priorities include deepening WinstonAI so that it operates as a
truly agentic assistant, expanding the underlying Customer Data Platform to
support broader audience types and more real-time experiences, and
accelerating audience-growth tools that maximise reach. We are also
progressing plans to broaden the CXDP with an in-house-developed Loyalty
product which will launch early in calendar year 2026.
Strategic Partnerships
Revenue from customers using named technology connectors increased by 8% to
£37.0m (FY24: £34.1m), highlighting the part our ecosystem plays in adoption
and expansion on the CXDP. Revenue per connected customer increased by 19% in
FY25, indicating deeper deployments and therefore stickier customers with
higher revenue potential.
Within e-commerce, connector-attached revenue increased by 8% to £25.1m
(FY24: £23.3m). Stand-out growth came from Shopify, up 25% to £6.5m. In
addition, Adobe (Magento), BigCommerce, WooCommerce and Shopware all
experienced increases.
In CRM and ERP, connector-attached revenue increased by 10% to £11.9m (FY24:
£10.8m), led by Salesforce increasing 13%. Dynamics also saw strong growth
and, pleasingly, we saw early momentum in NetSuite, indicating developing ERP
momentum.
Personalisation (Fresh Relevance) remains a catalyst for connector adoption
and is now native within our CXDP. This is helping customers activate data
from commerce and CRM connectors more quickly and at greater depth, which in
turn supports higher average contract values.
Alongside this, we broadened the ecosystem with additions such as Blackbaud
Raiser's Edge, Trustpilot service reviews, Segment and Bynder. We will
continue to invest in enablement, co-marketing, certification and marketplace
presence to extend our reach in priority regions and verticals.
Outlook
We enter FY26 with measured confidence, supported by a robust pipeline and
sustained international momentum, further strengthened by a growing Social
Snowball pipeline. International markets and Social Snowball are expected to
be the main growth accelerators as they continue to build scale. We also
expect EMEA growth rates to normalise following the previously mentioned
one-off events which moderated growth in FY25. We are seeing the market
converge around integrated platform offerings, driven by organisations' need
for efficiency, simplicity, and measurable ROI; precisely the strengths of our
secure, data-driven platform that enables seamless automation and AI
integration.
Execution will continue to centre on expanding usage and retention. We are
investing in customer success, implementations and onboarding to shorten time
to value and to support durable net retention. The revenue mix remains highly
recurring with a strong contracted component, which underpins visibility.
Our product priorities are clear. We will deepen WinstonAI, expand the
underlying Customer Data Platform for broader audiences and real-time use
cases, and progress our Loyalty product. Social Snowball is progressing to
plan - ARR has increased since acquisition, operations are onboarded and
product integration into the Dotdigital platform is advancing.
Capital allocation will remain disciplined. We will continue to fund organic
growth and targeted M&A from free cash flow, with a proactive pipeline and
intention to continue with our stated acquisition strategy to assess
opportunities that broaden our proposition and where the asset, valuation and
timing are right. Our focus is on adding bolt-on capabilities that can be
rapidly integrated into the platform to extend workflow coverage across
clients, unlock new revenue streams, and expand our total addressable market
(TAM).
Overall, we expect FY26 to be another year of sustainable growth and strong
cash generation.
Financial Review
Business Model
We sell access to our CXDP and messaging (email, SMS, MMS, WhatsApp, push) on
1-3 year contracts priced by modules taken, data volumes and message volumes.
Revenue is recognised evenly over the contract life under IFRS 15, with
customers able to upgrade during term as usage grows.
Fresh Relevance, acquired in FY24, added website-personalisation capability
and an additional pricing lever via page-view volumes.
In late June 2025 we acquired Social Snowball, a subscription SaaS product for
influencer, affiliate and referral programmes. Social Snowball's revenues are
recognised in the same way as our other software revenues, albeit the vast
majority of contracts are currently month-to-month. The product broadens our
addressable market and increases cross-sell potential, with a margin profile
consistent with the Group.
Professional services remain a small contributor (well under 5% of group
revenue) and are recognised as delivered.
Revenue and gross margin
Total revenue increased 6% on an actual currency basis or 7% on a constant
currency basis to £83.9m (FY24: £79.0m), including a £0.7m in-year headwind
from the previously announced exit of a non-core, low margin contract. Growth
was driven by the core SaaS and contracted messaging base and continued
expansion in international markets.
Core CXDP (and related) recurring revenue rose by 8% on a constant currency
basis to £67.8m (FY24: £62.7m), while repeating revenues from our low margin
transactional messaging CPAAS business were £12.0m (FY24: £11.7m). Together
with repeating revenue, ~94% of Group revenue was recurring or repeating.
By region (local currency): EMEA £61.5m (+3%); North America US$18.2m (+19%);
APAC A$16.6m (+20%). International revenue represented 33% of Group revenue
(FY24: 32%).
Gross profit was £66.6m (FY24: £62.8m), with a gross margin of 79%,
consistent with the prior year. Core CXDP and related margins are at ~90%,
with overall Group revenues being diluted by the standalone transactional
CPaaS business which operates on gross margins of ~15%.
R&D credit presentation change & tax
From FY25, the UK R&D incentive is presented in Other income under the
RDEC regime rather than as a tax credit, which amounted to £0.7m in FY25.
When considered together with the tax expense of £3.9m (FY24: £2.1m), the
net tax position has increased by £1.1m to £3.2m, equating to a
like-for-like effective tax rate increase from 16% to 21%. This increase in
effective tax rate is a result of the increase in the UK tax rate and the
significant reductions to the UK R&D tax incentive scheme for FY25.
Operating expenses
Total operating expenses were £49.8m (FY24: £47.2m), up 5%, reflecting
disciplined investment in go-to-market and product while managing inflationary
pressure.
Profitability
Adjusted EBITDA increased 10% to £26.8m (FY24: £24.3m), a margin of 32%
(FY24: 31%). Adjusted operating profit rose 13% to £17.5m (FY24: £15.6m).
Adjusted PBT increased 13% to £19.0m (FY24: £16.8m). The tax charge was
£3.9m (FY24: £2.1m), reflecting the higher UK rate and the change to the
RDEC presentation noted above. Statutory PAT was £11.2m (FY24: £11.1m), up
1%.
EPS
Adjusted diluted EPS growth of 2% to 4.80p (FY24: 4.71p), with underlying
profit growth being partly offset by the higher effective tax rate.
Balance sheet and cash
The Group remained strongly cash-generative with a robust working-capital
profile. The upfront cash consideration for the acquisition of Social Snowball
in June 2025 was funded from existing cash resources. We continue to allocate
cash with discipline across organic investment and selective,
earnings-enhancing M&A.
Dividend policy
We remain committed to a progressive dividend policy aligned to earnings and
cash generation. The Board are proposing a dividend for shareholder approval
of 1.21p per share (FY24: 1.10p) an increase of 10% in line with adjusted
EBITDA growth. The dividend record and payment timetable will be announced
following the approval of the dividend payment at the 2025 annual general
meeting.
Dotdigital Group Plc
Consolidated Income Statement
For the year ended 30 June 2025
30.06.25 30.06.24
Notes £'000s £'000s
Revenue from contracts with customers 3 83,921 78,973
Cost of sales (17,371) (16,177)
Gross profit 66,550 62,796
Administrative expenses (49,765) (47,222)
Other operating income 736 -
Operating profit from continuing operations pre share-based payments, 17,521 15,574
amortisation of acquired intangibles and exceptional costs
(702) (1,219)
Share-based payments
Amortisation of acquired intangibles 6 (1,786) (1,462)
Exceptional costs 7 (1,463) (973)
Operating profit from continuing operations 13,570 11,920
Finance costs 8 (133) (88)
Finance income 8 1,652 1,351
Profit before income tax from continuing operations 15,089 13,183
Income tax expense 4 (3,879) (2,117)
Profit for the year from continuing operations 11,210 11,066
Profit for the year attributable to the owners of the Company 11,210 11,066
Earnings per share from all operations (pence per share)
Basic 5 3.65 3.62
Diluted 5 3.55 3.54
Adjusted basic 5 4.93 4.82
Adjusted diluted 5 4.80 4.71
Dotdigital Group Plc
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2025
30.06.25 30.06.24
Notes £'000s £'000s
Profit for the year 11,210 11,066
Other comprehensive (expense)/income
Items that may be subsequently reclassified to
profit and loss:
Exchange differences on translating foreign operations (682) (27)
Total comprehensive income attributable to:
Owners of the parent 10,528 11,039
Total comprehensive income for the year 10,528 11,039
Comprehensive income from continuing operations
Dotdigital Group Plc
Consolidated Statement of Financial Position
As at 30 June 2025
30.06.25 30.06.24
Notes £'000s £'000s
Assets
Non-current assets
Goodwill 9 35,392 22,278
Intangible assets 6 48,356 37,556
Property, plant and equipment 2,350 3,568
86,098 63,402
Current assets
Trade and other receivables 17,320 18,011
Current tax recoverable 1,063 -
Cash and cash equivalents 36,211 42,160
54,594 60,171
Total assets 140,692 123,573
Equity attributable to the owners of the parent
Called up share capital 1,538 1,538
Share premium 12,786 12,786
Reverse acquisition reserve (4,695) (4,695)
Share-based payment reserve 3,263 2,835
Retranslation reserve (451) 231
Retained earnings 90,669 82,505
Total equity 103,110 95,200
Liabilities
Non-current liabilities
Lease liabilities 1,249 2,334
Contingent Consideration 10 6,786 -
Deferred tax 8,307 6,330
16,342 8,664
Current Liabilities
Trade and other payables 10 20,709 18,348
Lease liabilities 531 746
Current tax payable - 615
21,240 19,709
Total Liabilities 37,582 28,373
Total equity and liabilities 140,692 123,573
Dotdigital Group Plc
Company Statement of Financial Position
As at 30 June 2025
30.06.25 30.06.24
Notes £'000s £'000s
Assets
Non-current assets
Intangible assets 6 2 3
Property, plant and equipment 6 9
Investments 11 44,211 43,794
44,219 43,806
Current assets
Trade and other receivables 14,450 11,321
Cash and cash equivalents 372 724
14,822 12,045
Total assets 59,041 55,851
Equity attributable to the
owners of the parent
Called up share capital 1,538 1,538
Share premium 12,786 12,786
Share-based payment reserve 3,205 2,828
Retained earnings 7,217 7,057
TOTAL EQUITY 24,746 24,209
Liabilities
Current liabilities
Trade and other payables 10 34,295 31,642
Total liabilities 34,295 31,642
Total equity and liabilities 59,041 55,851
As permitted by section 408 of the Companies Act 2006, the parent company's
income statement has not been included in these financial statements. The
profit for the Company was £3,205,824 (2024: loss of £1,814,895).
Dotdigital Group Plc
Consolidated Statement of Changes in Equity
For the year ended 30 June 2025
Called up
Share Retained Share
Capital Earnings Premium
£'000 £'000 £'000
Balance as at 1 July 2023 1,496 73,536 7,124
Transactions with owners
Issue of share capital 42 - 5,662
Dividends - (3,066) -
Transfer in reserves - 969 -
Deferred tax on share options - - -
Share-based payments - - -
Transactions with owners 42 (2,097) 5,662
Total comprehensive income
Profit for the year - 11,066 -
Other comprehensive income - - -
Total comprehensive income - 11,066 -
Balance as at 30 June 2024 1,538 82,505 12,786
Balance as at 1 July 2024 1,538 82,505 12,786
Transactions with owners
Issue of share capital - - -
Dividends - (3,375) -
Transfer in reserves - 329 -
Deferred tax on share options - - -
Share-based payments - - -
Transactions with owners - (3,046) -
Profit for the year - 11,210 -
Other comprehensive income - - -
Total comprehensive income - 11,210 -
Balance as at 30 June 2025 1,538 90,669 12,786
Retranslation Reverse Share-based payment Total
Reserve acquisition reserve reserve equity
£'000s £'000s £'000s £'000s
Balance as at 1 July 2023 258 (4,695) 2,591 80,310
Transactions with owners
Issue of share capital - - - 5,704
Dividends - - - (3,066)
Transfer in reserves - - (969) -
Deferred tax on share options - - 16 16
Share-based payments - 1,197 1,197
-
Transactions with owners - - 244 3,851
Total comprehensive income
Profit for the year - - - 11,066
Total comprehensive income (27) - - (27)
Balance As at 30 June 2024 231 (4,695) 2,835 95,200
Balance As at 1 July 2024 231 (4,695) 2,835 95,200
Transactions with owners
Issue of share capital - - - -
Dividends - - - (3,375)
Transfer in reserves - - (329) -
Deferred tax on share options - - 51 51
Share-based payments - - 706 706
Transactions with owners - - 428 (2,618)
Total comprehensive income
Profit for the year - - - 11,210
Other comprehensive income (682) - - (682)
Total comprehensive income (682) - - 10,528
As at 30 June 2025 (451) (4,695) 3,263 103,110
· Share capital is the amount subscribed for shares at nominal
value.
· Retained earnings represents the cumulative earnings of the Group
attributable to equity shareholders.
· Share premium represents the excess of the amount subscribed for
share capital over the nominal value net of the share issue expenses.
· Retranslation reserve relates to the retranslation of foreign
subsidiaries into the functional currency of the Group.
· The reverse acquisition reserve relates to the adjustment
required to account for the reverse acquisition in accordance with UK Adopted
International Accounting Standards.
· Share-based payment reserve relates to the charge for the
share-based payment in accordance with IFRS 2 and the transfer on the exercise
or lapsing of share options.
Dotdigital Group plc
Company Statement of Changes in Equity
For the year ended 30 June 2025
Called up share Retained Share-based premium Share-based payment Total
capital earnings reserve equity
£'000s £'000s £'000s £'000s £'000s
Balance as at 1 July 2023 1,496 10,969 7,124 2,600 22,189
Transactions with owners
Issue of share capital 42 - 5,662 - 5,704
Dividends - (3,066) - - (3,066)
Transfer in reserves - 969 - (969) -
Share-based payments - - 1,197
- 1,197
Transactions with owners 42 (2,097) 5,662 228 3,835
Total comprehensive loss
Loss for the year - (1,815) - - (1,815)
Total comprehensive loss - (1,815) - - (1,815)
Balance As at 30 June 2024 1,538 7,057 12,786 2,828 24,209
Balance As at 1 July 2024 1,538 7,057 12,786 2,828 24,209
Transactions with owners
Issue of share capital - - - - -
Dividends - (3,375) - - (3,375)
Transfer in reserves - 329 - (329) -
Share-based payments - - - 706 706
Transactions with owners - (3,046) - 377 (2,669)
Total comprehensive income
Profit for the year - 3,206 - - 3,206
Total comprehensive income - 3,206 - - 3,206
As at 30 June 2025 1,538 7,217 12,786 3,205 24,746
· Share capital is the amount subscribed for shares at nominal
value.
· Retained earnings represents the cumulative earnings of the
Company attributable to equity shareholders.
· Share premium represents the excess of the amount subscribed for
share capital over the nominal value net of the share issue expenses.
· Share-based payment reserve relates to the charge for the
share-based payment in accordance with IFRS 2 and the transfer on the exercise
or lapsing of share options.
Dotdigital Group Plc
Consolidated Statement of Cash Flows
For the year ended 30 June 2025
30.06.25 30.06.24
Notes £'000s £'000s
Cash flow from operating activities
Cash generated from operations 15 28,007 23,212
Interest paid 8 (133) (88)
Tax paid (5,533) (2,057)
Net cash generated from operating activities 22,341 21,067
Cash flow from investing activities
Acquisition of subsidiaries net of cash acquired 9 (14,469) (18,325)
Additional consideration for repayment of debts at acquisition - (607)
Purchase of intangible fixed assets 6 (10,322) (9,709)
Purchase of property, plant and equipment (315) (195)
Interest received 8 1,652 1,351
Net cash used in investing activities (23,454) (27,485)
Cash flows from financing activities
Equity dividends paid (3,375) (3,066)
Payment of leasing liabilities (779) (1,012)
Proceeds from share issues - 7
Net cash used in financing activities (4,154) (4,071)
Decrease in cash and cash equivalents (5,267) (10,489)
Cash and cash equivalents at beginning of year 42,160 52,676
Effect of foreign exchange rate changes (682) (27)
Cash and cash equivalents at end of year 36,211 42,160
Dotdigital Group plc
Company statement of cash flows
For the year ended 30 June 2025
30.06.25 30.06.24
Notes £'000 £'000
Cash flows from operating activities
Cash generated from operations 15 3,066 22,217
Net cash generated from operating activities 3,066 22,217
Cash used in investing activities
Acquisition of subsidiaries net of cash acquired - (18,323)
Additional subsidiary investment (40) -
Purchase of intangible fixed assets 6 - (3)
Purchase of property, plant and equipment (3) (4)
Net cash flows used in investing activities (43) (18,830)
Cash flows used in financing activities
Equity dividends paid (3,375) (3,066)
Proceeds from share issues - 7
Net cash flows used in financing activities (3,375) (3,059)
(Decrease)/Increase in cash and cash equivalents (352) 328
Cash and cash equivalents at beginning of year 724 396
Cash and cash equivalents at end of year 372 724
Dotdigital Group Plc
Notes to consolidated financial statements
For the year ended 30 June 2025
1. GENERAL INFORMATION
Dotdigital Group Plc is a company incorporated in England and Wales and quoted
on the AIM market.
2. RESPONSIBILITY STATEMENTS UNDER THE DISCLOSURE AND TRANPARENCY RULES
The Annual Financial Report for the year ended 30 June 2025 contains the
following statements:
The directors confirm that to the best of their knowledge:
· the Group financial statements have been prepared in accordance with IFRS as
issued by IASB and Article 4 of the IAS Regulation, and give a true and fair
view of the assets, liabilities, financial position and profit and loss of the
Group; and
· the Annual Financial Report 2025 includes a fair review of the development and
performance of the business and the financial position of the Group and the
Parent Company, together with a description of the principal risks and
uncertainties that they face.
The name and function of each of the directors for the year ended 30 June 2025
are set out in the Annual Financial Report 2025.
3. SEGMENTAL REPORTING
Dotdigital's single line of business is the provision of intuitive software as
a service (SaaS) via an AI-powered customer experience and data platform for
intelligent, personalised marketing engagement at scale. The chief operating
decision-maker considers the Group's segments to be by geographical location,
this being EMEA, US and APAC operations as shown in the tables that follow:
Geographical revenue and results (from all operations)
30.06.25
EMEA US APAC
Operations Operations Operations Total
£'000s £'000s £'000s £'000s
Income statement
Revenue 61,556 14,042 8,323 83,921
Gross profit 46,024 12,838 7,688 66,550
Profit before income tax 11,813 2,592 684 15,089
Total comprehensive income attributable to the owners of the parent 7,983 1,673 872 10,528
Financial position
Total assets 122,272 15,873 2,547 140,692
Net current assets 26,939 4,820 1,595 33,354
30.06.24
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/(loss) 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
30.06.24
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/(loss) 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
The Company is domiciled in the UK, its consolidated non-current assets, other
than financial instruments and deferred tax assets are as follows:
30.06.25 30.06.24
£'000 £'000
Non-current assets
United Kingdom 63,944 62,867
Rest of the World 22,154 535
86,098 63,402
4. INCOME TAX EXPENSE
Analysis of the tax charge from continuing operations:
30.06.25 30.06.24
£'000 £'000
Current tax on profits for the year 4,032 2,030
Foreign tax suffered 422 301
Changes in estimates related to prior years 137 48
Deferred tax on origination and reversal of timing differences (712) (262)
3,879 2,117
Factors affecting the tax charge:
30.06.25 30.06.24
£'000 £'000
Profit on ordinary activities from all operations before tax 15,089 13,183
Profit on ordinary activities multiplied by the standard rate of corporation 3,772 3,296
tax in the UK: 25% (2024: 25%)
Effects of:
Adjustments in respect of prior years 188 (67)
Expenses not deductible 95 300
Research and development enhanced claim (51) (1,469)
Income not taxable (11) (1)
Losses (15) -
Share options 185 55
Amounts not recognised and previously unrecognised (285) (4)
Tax rate changes - 1
Effects of overseas tax rates 1 8
Other - (2)
Total tax charge for the year 3,879 2,117
Taxation for each region is calculated at the rates prevailing in the
respective jurisdiction.
The effective tax rate in the period was 25.71% (2024: 16.06%).
5. EARNINGS PER SHARE
Earnings per share data is based on the consolidated profit 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 year.
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 exceptional costs, share based payment and amortisation of acquired
intangibles.
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.
Reconciliations to earnings figures used in arriving at adjusted earnings per 30.06.25
share are as follows:
30.06.24
From all operations £'000s £'000s
Profit for the year attributable to the owners of the parent 11,210 11,066
Amortisation of acquisition-related intangible fixed asset (see note 6) 1,786 1,462
Professional costs in relation to the acquisition (see note 7) 750 389
Other exceptional costs (see note 7) 713 584
Share-based payment 702 1,219
Adjusted profit for the year attributable to the owners of the parent 15,161 14,720
Management does not consider the above adjustments to reflect the underlying
business performance.
30.06.25
Weighted
From all operations average Per share
Earnings number of Amount
£'000 shares Pence
Basic EPS
Profit for the year attributable to the owners of the parent 11,210 307,508,354 3.65
Adjusted basic EPS
Adjusted profit for the year attributable to the owners of the parent 15,161 307,508,354 4.93
Options and warrants - 8,609,979 -
Diluted EPS
Profit for the year attributable to the owners of the parent 11,210 316,118,333 3.55
Adjusted diluted EPS
Adjusted profit for the year attributable to the owners of the parent 15,161 316,118,333 4.80
30.06.24
Weighted
From all operations average Per share
Earnings number of Amount
£'000 shares Pence
Basic EPS
Profit for the year attributable to the owners of the parent 11,066 305,472,095 3.62
Adjusted basic EPS
Adjusted profit for the year attributable to the owners of the parent 14,720 305,472,095 4.82
Options and warrants - 7,192,298 -
Diluted EPS
Profit for the year attributable to the owners of the parent 11,066 312,664,393 3.54
Adjusted diluted EPS
Adjusted profit for the year attributable to the owners of the parent 14,720 312,664,393 4.71
Weighted average number of shares in issue as follows:
30.06.25 30.06.24
Weighted average number £'000 £'000
Basic 307,508,354 305,472,095
Diluted 316,118,333 312,664,393
6. INTANGIBLE ASSETS
Group Technology Customer relationships Brand Names Intellectual property
£'000 £'000 £'000 £'000
At 1 July 2024 8,451 11,083 - 58
Additions - - - -
Disposals - - - (6)
Acquisition 9,366 123 1,469 -
At 30 June 2025 17,817 11,206 1,469 52
AMORTISATION
At 1 July 2024 1,520 1,817 - 48
Amortisation for the year 1,026 760 - 8
Disposals - - - (6)
At 30 June 2025 2,546 2,577 - 50
NET BOOK VALUE
At 30 June 2024 15,271 8,629 1,469 2
Group Internally generated development
Computer Domain
software costs names Totals
£'000 £'000 £'000 £'000
At 1 July 2024 1,096 60,049 51 80,788
Additions 4 10,318 - 10,322
Disposals - - - (6)
Acquisition - - - 10,958
At 30 June 2025 1,100 70,367 51 102,062
AMORTISATION
At 1 July 2024 1,029 38,780 38 43,232
Amortisation for the year 37 8,648 1 10,480
Disposals - - - (6)
At 30 June 2025 1,066 47,428 39 53,706
NET BOOK VALUE
At 30 June 2025 34 22,939 12 48,356
Group Technology Customer relationships Intellectual property
£'000 £'000 £'000
At 1 July 2023 1,200 1,205 55
Additions - - 3
Acquisition 7,251 9,878 -
At 30 June 2024 8,451 11,083 58
AMORTISATION
At 1 July 2023 670 1,205 47
Amortisation for the year 850 612 1
At 30 June 2024 1,520 1,817 48
NET BOOK VALUE
At 30 June 2024 6,931 9,266 10
Group Internally generated development
Computer Domain
software costs names Totals
£'000 £'000 £'000 £'000
At 1 July 2023 1,080 50,359 51 53,950
Additions 16 9,690 - 9,709
Acquisition - - - 17,129
At 30 June 2024 1,096 60,049 51 80,788
AMORTISATION
At 1 July 2023 980 31,151 37 34,090
Amortisation for the year 49 7,629 1 9,142
At 30 June 2024 1,029 38,780 38 43,232
NET BOOK VALUE
At 30 June 2024 67 21,269 13 37,556
Development cost additions represent resources the Group has 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
licences the use of the platform.
Technology represents the cost that would be incurred to build the entire
Comapi and Fresh Relevance platforms had the acquisitions not occurred plus
the value of Social Snowball's technology based on future economic earnings.
Customer relationships represent the value of customer contracts within
Comapi, Fresh Relevance and Social Snowball. Brand names represent the value
of the trade name of Social Snowball.
Company
Intellectual
Property
COST £'000
At 1 July 2024 3
Additions -
At 30 June 2025 3
DEPRECIATION
At 1 July 2024 -
Depreciation for the year 1
At 30 June 2025 1
NET BOOK VALUE
At 30 June 2025 2
NET BOOK VALUE
At 30 June 2024 3
7. EXCEPTIONAL
COSTS
30.06.25 30.06.24
£'000 £'000
Professional costs in relation to the acquisition 750 389
Surrender of Croydon office lease 264 -
Restructuring costs 166 430
Professional fees related to the valuation of share options 13 11
Adjustment to Useful Economic Life of CRM due to replacement 270 -
Employers NI paid on the exercise of LTIPs - 143
1,463 973
8. NET FINANCE INCOME
30.06.25 30.06.24
£'000 £'000
Deposit account interest 1,652 1,351
Finance income: 1,652 1,351
Interest on lease liabilities (143) (81)
Other net interest payable - (28)
Interest capitalised 10 21
Finance expense: (133) (88)
Net finance income 1,519 1,263
9. GOODWILL
Group
30.06.25 30.06.24
COST £'000 £'000
At 1 July 25,790 13,192
Additions 13,114 12,598
38,904 25,790
At 30 June
IMPAIRMENT
At 1 July 3,512 3,512
At 30 June 3,512 3,512
NET BOOK VALUE 35,392 22,278
On 25 June 2025, the Group acquired all the voting rights of Social Snowball
Holdings, Inc ("Social Snowball") a US-based influencer, affiliate and
referral marketing platform for e-commerce brands. The total consideration is
up to $35m comprising an initial cash payment of $20m and an earnout dependent
on two-year performance of up to $15m.
The Directors believe the acquisition:
· Adds complementary capability to Dotdigital in the fast-growing influencer,
affiliate and referral marketing segments.
· Extends capability of Dotdigital's AI-powered customer experience and data
platform, strengthening the Group's competitive positioning and increasing its
total addressable market.
· Provides Dotdigital with an enhanced value proposition to enable Average
Revenue Per Customer expansion through cross-sell and up-sell opportunities.
· Will be immediately earnings enhancing, with a complementary SaaS business
model and an equivalent margin profile to the existing Group.
Goodwill of £13.1m was recognised on the acquisition, being the excess of the
purchase consideration over the fair value of net assets acquired as set out
below.
Fair value of assets acquired
£'000s
Assets
Non-current assets
Intangibles assets 10,958
10,958
Current assets
Trade and other receivables 1
Cash and cash equivalents 280
281
Total assets 11,239
Liabilities
Non-current liabilities
Deferred tax 2,740
2,740
Current liabilities
Trade and other payables 17
17
Total liabilities 2,757
Total fair value of assets acquired 8,482
Goodwill 13,114
Consideration in cash 14,749
Consideration in ordinary shares 6,847
Total consideration 21,596
Consideration transferred settled in cash 14,749
Cash and cash equivalents acquired (280)
Net cash outflow on acquisition 14,469
10. TRADE AND OTHER PAYABLES
Group Company
30.06.25 30.06.24 30.06.25 30.06.24
£'000 £'000 £'000 £'000
Current:
Trade payables 3,242 2,262 40 52
Social security and other taxes 549 688 - -
Other payables 593 214 - -
Amounts owed to Group undertakings - - 34,115 31,492
VAT 1,688 1,202 - -
Accruals and contract liabilities 14,637 13,982 140 98
20,709 18,348 34,295 31,642
Non-current:
Contingent Consideration 6,786 - - -
6,786 - - -
Contingent consideration
At the date of acquisition of Social Snowball Holdings Inc, contingent
consideration was recognised of US$ 9,311,000 within Dotdigital Inc. The
Earnout is based on the Monthly Recurring Revenue in the previous calendar
month multiplied by 12. The Earnout payment dates are 31 August 2026 and 2027.
The discount period has been based on the payment dates with a discount factor
of 28%.
11. INVESTMENTS
Company Group Group
undertakings undertakings
30.06.25 30.06.24
£'000 £'000
COST
At 1 July 48,554 22,837
Additions 746 25,717
At 30 June 49,300 48,554
IMPAIRMENT
At 1 July 4,760 3,790
Impairment (lapsed share options) 329 970
At 30 June 5,089 4,760
NET BOOK VALUE
At 30 June 44,211 43,794
Subsidiaries Nature of business Class of share Proportion of
voting power
held directly %
Dotdigital EMEA Limited All-in-one customer experience and data platform Ordinary 100
Dotdigital Inc All-in-one customer experience and data platform Ordinary 100
Dotdigital APAC Pty Limited All-in-one customer experience and data platform Ordinary 100
Dotdigital B.V. All-in-one customer experience and data platform Ordinary 100
Dotdigital Development SA Pty Development hub Ordinary 100
Dotdigital SG Pte Limited All-in-one customer experience and data platform
Ordinary 100
Dynmark International Limited Non-trading Ordinary 100
Dotdigital Poland S.p. z.o.o Development hub Ordinary 100
Dotdigital Japan Limited All-in-one customer experience and data platform Ordinary 100
Fresh Relevance Limited Cross-channel personalisation platform Ordinary 100
Fresh Relevance Inc Cross-channel personalisation platform Ordinary 100
Social Snowball Holdings Inc Influencer, affiliate and referral marketing platform Ordinary 100
Subsidiary Registered office
Dotdigital EMEA Ltd No.1 London Bridge
Dynmark International Ltd London
Fresh Relevance Ltd SE1 9BG
Dotdigital Inc 16192 Coastal Highway
Lewes
Delaware 19958-9776
County of Sussex
USA
Fresh Relevance Inc 6 Liberty Square
Unit 248
Boston
MA 02109
USA
Social Snowball Holdings Inc 80 Mallard Drive
Delray Beach
Florida
33444, USA
Dotdigital APAC Pty Ltd 60/2 O'Connell Street
Parramatta
New South Wales 2150
Australia
Dotdigital SG Pte Ltd 6001 Beach Road
11-06 Golden Mile Tower
199589 Singapore
Dotdigital Japan Ltd 3-1-6 Motoazabu
Minato-ku
Tokyo
Japan
Dotdigital Development SA Pty Ltd BDO Building
Wanderers Office Park
52 Corlett Drive
Illovo
Johannesburg 2196
South Africa
Dotdigital B.V. Spaces Amstel
Mr. Treublaan 7
Amsterdam
1097DP
Netherlands
Dotdigital Poland S.p. z.o.o Al. Jana Pawla II 22
00-133 Warsaw
Poland
12. CONTINGENT LIABILITIES
The Company has no contingent liabilities at the year end (2024: £Nil). The
Group has a contingent liability due to the acquisition of Social Snowball
Holdings Inc by way of contingent cash consideration of up to US$ 9.3m over
two years (2024: £nil). This would be payable if Social Snowball Holdings Inc
maintains its historical growth rate at a sufficiently accretive margin for
the Group. See note 10 for further details.
13. ADJUSTED PROFIT BEFORE TAX
30.6.25 30.6.24
£'000 £'000
Profit before income tax 15,089 13,183
Amortisation of acquired intangibles (see note 6) 1,786 1,462
Professional acquisition costs (see note 7) 750 389
Other exceptional costs (see note 7) 713 584
Share-based payment 702 1,219
Adjusted profit before income tax 19,040 16,837
Amortisation charge * 8,424 7,680
Depreciation charge * 839 1,027
Finance income (1,652) (1,351)
Finance costs 133 88
Adjusted EBITDA 26,784 24,281
* Both amortisation of intangibles and depreciation charge will not agree to
the relevant notes as these numbers include amounts in cost of sales but
exclude amounts capitalised as development expenditure and amounts included in
exceptional costs.
14. PROJECT DEVELOPMENT
During the year the Group incurred £10,318,000 (2024: £9,690,000) in
development investments. All resources utilised in development have been
capitalised as outlined in the accounting policy governing this area
15. GROUP RECONCILIATION OF PROFIT BEFORE CORPORATION TAX TO CASH GENERATED
FROM OPERATIONS
Group Company
30.06.25 30.06.24 30.06.25 30.06.24
£'000 £'000 £'000 £'000
Current:
Profit/(loss) before tax from all operations 15,089 13,183 3,205 (1,815)
Amortisation 10,480 9,142 1 -
Depreciation 839 985 6 4
Finance lease non-cash movement 67 265 - -
Loss on disposal of fixed assets 33 - - -
Finance Income (1,652) (1,351) - -
Share-based payments 702 1,197 - -
Impairment on investment - - 329 970
R&D tax credit (736) - - -
Finance expense 133 88 - -
24,955 23,509 3,541 (841)
(Increase)/decrease in trade receivables 691 (1,941) (3,129) 4,088
Increase in trade payables 2,361 1,644 2,654 18,970
Cash generated from operations 28,007 23,212 3,066 22,217
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