LONDON (Alliance News) - Software-as-a-service company DotDigital Group PLC Tuesday posted a rise in pretax profit for the first half of its financial year, and expressed confidence for the remainder of this year, 2016 and beyond.
The company posted a pretax profit of GBP2.5 million for the six months to December 31, up from GBP2.2 million a year before, as a rise in revenue to GBP10.0 million from GBP7.6 million was partly offset by an increase in administrative expenses.
Average monthly billing from all clients rose to GBP400 million from GBP284 million, the company said, as it focused on winning higher value clients and growing recurring spending from its existing clients.
The company is undertaking an up-to-GBP3 million investment plan over the next two years to scale its business by expanding its products and geographies.
It has opted not to propose an interim dividend, as the company's policy is to review dividends at the year end.
"Based on the strong performance at the half year, the growing demand for marketing automation, the newly released product features and investment strategy, the board remains confident of delivering strong growth, underlying profitability and increasing shareholder value for this year, 2016 and beyond," said newly appointed Chief Executive Officer Simone Barratt in a statement.
Barratt was appointed chief executive designate last October, but has now taken on the full role, succeeding Peter Simmonds who will continue as deputy chief executive.
Still, shares in Dotdigital were trading down 6.04% at 35.00 pence Tuesday morning. The stock is still up 16.5% so far in 2015.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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dotDigital Group (DOTD)