LONDON (Alliance News) - Shares in dotDigital Group PLC jumped 8.2% after it proposed a maiden dividend of 0.1 pence following increased revenues and pretax profits in the year ended June 30.
Shares in the digital marketing software and services company were trading up 8.2% at 19.75 pence Tuesday morning.
The company posted full-year revenues of GBP12.2 million, up from GBP9.5 million in the previous year. The company said that improving economic sentiment in the UK had led to new customers investing in marketing initiatives, and that it had seen notable customer signings in the first quarter including Paperchase and Shakespeare's Globe.
The company had a pretax profit of GBP4.0 million, up from GBP2.4 million. Profits were impacted by dotDigitals decision to exit the Services division, the company said.
Administrative expenses increased to GBP7.3 million from GBP6.5 million. DotDigital invested in hiring additional staff and added 12 staff over the last three months, which it expects to impact its business in the coming months. The company said that it had reviewed its agency business, and after considering its options decided to run down its order book and transfer some individuals into the core business.
"As economic confidence in the UK improves, we are starting to see customers investing in new initiatives and for the first time in some years actually talking about increasing marketing budgets," said Chief Executive Peter Simmons in a statement.
The company said it will invest a proportion of its net cash to accelerate growth in the 2012 to 2013 financial year. It has not ruled out acquisition, it said, but its focus was on organic growth and increased revenues from existing customers.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
dotDigital Group (DOTD)