25 February 2025
Dotdigital Group
plc
("Dotdigital"
or the "Group")
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%)
|
|
·
|
ARPC1 increased
12.1% to £1,916 per month (H1 FY24: £1,709 per month)
|
|
·
|
Adjusted EBITDA2 of
£13.8m up 11% from £12.4m
|
|
·
|
Adjusted profit before
tax3 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.
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.
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
Milan Patel, CEO
Alistair Gurney, CFO
|
Tel: 020 3953 3072
investorrelations@dotdigital.com
|
|
Alma Strategic Communications
Hilary Buchanan
David Ison
Kieran Breheny
|
Tel: 020 3405 0210
dotdigital@almastrategic.com
|
|
Canaccord Genuity (Nominated Advisor and Joint
Broker)
Bobbie Hilliam
Elizabeth Halley-Stott
|
Tel: 020 7523 8000
|
|
Cavendish Capital Markets Limited (Joint
Broker)
Jonny Franklin Adams, Corporate Finance
Sunila de Silva, Equity Capital
Markets
|
Tel: 020 7220 0500
|
|
Singer Capital Markets (Joint
Broker)
Shaun Dobson, Corporate Finance
Alex Bond, Corporate
Finance
|
Tel: 020 7496 3000
|
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 at USD $6.65 billion in
20241 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 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
shows this remains high on the agenda for
marketing investment, supported
by third-party research, 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 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
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
|
|
|
|
Other Income
|
5
|
390
|
|
-
|
|
-
|
|
|
|
Administrative expenses
|
|
(24,269)
|
|
(22,358)
|
|
(47,222)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit from operations pre share based payments,
amortisation of acquired intangibles and exceptional
costs
|
|
9,228
|
|
8,365
|
|
15,574
|
|
|
|
Share based payments
|
|
(477)
|
|
(364)
|
|
(1,219)
|
|
|
|
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
2024
|
|
31
Dec
2023
|
|
30
June
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 share are as follows:
|
6 months
to 31 December 2024
|
|
6 months
to
31
December 2023
|
|
12 months
to
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
2024
|
|
to 31
Dec
2023
|
|
to 30
June
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 2024
|
|
6 months
to 31 Dec 2023
|
|
12 months
to 30 June 2024
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
|
£'000s
|
|
£'000s
|
|
£'000s
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
|
for
the purpose of earnings
|
|
|
|
|
|
|
per
share:
Basic
Adjusted
|
|
6,306
7,949
|
|
6,036
7,600
|
|
11,066
14,720
|
|
|
|
|
|
|
|
|
|
|
7.
EARNINGS PER SHARE (CONTINUED…)
Weighted average number of shares in
issue as follows:
|
|
|
|
|
|
|
|
|
|
|
6 months
to 31 Dec 2024
|
|
6 months
to 31 Dec 2023
|
|
12 months
to 30 June 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
2024
|
|
to 31 Dec
2023
|
to 30 June
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
to 31 Dec 2024
|
|
6
months
to 31 Dec 2023
|
|
to 30 June
2024
|
|
|
|
|
|
|
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.
