DGS.L Regulatory News (DGS)

23 June 2015

Digital Globe Services, Ltd.

(the "Company", the "Group" and together with its subsidiaries "DGS")

Trading Update and Board Appointment

Digital Globe Services, Ltd. (AIM: DGS), a leading provider of online customer acquisition solutions for large, consumer-facing organisations, today provides an update on trading, together with confirmation of the intended appointment of interim Chief Financial Officer Andrew Lear to the position of Chief Financial Officer (CFO) and Executive Director of the Board of Directors.

As the end of the financial year approaches, DGS is pleased to announce that it expects to deliver adjusted EBITDA* performance for the year ending 30 June 2015 in line with market expectations. This expectation reflects a recovery in both revenues and gross margin in the second half compared to the first half and the Group also expects to end the year with net cash ahead of expectations. Accordingly, the Board expects that the Company will pay a dividend in relation to the full year with further information to be provided at the time of issue of the fiscal year-end results.

The Company is also pleased to confirm that the Board has resolved to promote its current interim CFO and the CFO of the US based entities, Andrew Lear, as CFO of the Company and as an Executive Director of the Board of Directors. The effective date of appointment will be confirmed in due course following completion of customary regulatory formalities, at which time any additional disclosures required under the AIM Rules for Companies will also be made.

Jeff Cox, CEO of DGS, commented: 

"We are pleased to be able to confirm trading is in line with the revised expectations issued in March this year and look forward to providing further detail in due course. We are encouraged by early, positive evidence that the investments we made in our infrastructure and people in the first half of the year are bearing fruit, as seen in the stronger second half performance, and we believe we are now in a better position to maximise opportunities within the evolving marketplace.

"The Company has implemented enhanced financial reporting systems through the combined efforts of Andrew Lear and our CTO, Chad Rycenga. On behalf of the Board, I am pleased to welcome Andrew to his new post and look forward to our continuing close teamwork."

*EBITDA is a non GAAP earnings metric which is earnings before interest, taxation, depreciation and amortization. "Adjusted EBITDA" additionally excludes bank facility and other charges, foreign exchange gains or losses, extraordinary items, non-cash Employee Stock Option Plan Charges, warrants, legal costs associated with acquisitions, restructuring costs, non-recurring severance and other employee termination costs.

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Overview of DGS

Founded in 2008 with offices in London, Bermuda, Netherlands, USA and Ireland, DGS is a specialist provider of outsourced online customer, lead, and inquiry acquisition and digital media solutions for large, consumer-facing corporations. DGS delivers customers to its clients through optimised paid search, search engine optimization, mobile, integrated websites, e-mail, social media and contact centre support, receiving a fee for each customer acquired for its clients.

DGS is seeking to establish itself as the leading international provider of outsourced online customer, lead and inquiry acquisition, services, through its focus on having the premier technology platform in the industry. By using its optimising technology platform, dgSMART, and its experience of website management and digital media customer acquisition, efficient contact centre operations and other process expertise, DGS is able to acquire customers and achieve conversion rates that deliver profitable, high quality customers and valuable leads and inquiries to its clients. 

DGS employs over 600 staff in Europe, North America and Asia. The Company currently has over 100 direct and indirect client relationships globally, many of which are with companies in the US Fortune 500.