dotDigital Group Regulatory News (DOTD)

3 March 2022

Dotdigital Group plc

("Dotdigital" or the "Group")

Interim results for the six months ended 31 December 2021

Dotdigital Group plc (AIM: DOTD), the leading 'SaaS' provider of an omnichannel marketing automation and customer engagement platform, announces its unaudited interim results for the six months ended 31 December 2021 ("H1 2022").

Financial Highlights

Operational Highlights

Current Trading and Outlook

Milan Patel, CEO of Dotdigital, commented:

"The Group delivered a first half performance of strong growth and profitability driven by new customer wins and expanded use of the platform across the existing customer base. Our consistent strategy continues to support our growth ambition in what is a significant market opportunity.

"Although we appear to be moving away from the worst of the pandemic, it triggered a dramatic acceleration in organisations' adoption of digital marketing that is set to endure, and the strength of our platform puts us in an ideal position to benefit from that trend. Whilst we continue to navigate through market challenges, particularly related to hiring, and adjust to a post-lockdown environment, the Board is committed to investing in our teams in line with the growth opportunity available, supported by a strong financial position and recurring SaaS business model."

Investor Presentation: https://www.dotdigitalgroup.com/events-presentations/

Live presentation to investors: Management will host a live presentation to investors via the Investor Meet Company platform on 4 March at 4pm UK time. Investors who already follow Dotdigital on the platform will automatically be invited, others are invited to register in advance via the following link: https://www.investormeetcompany.com/dotdigital-group-plc/register-investor.

Notes

1. ARPC means Average Revenue Per Customer (including new customers added in period and existing customers)

2. EBITDA is earnings before interest, tax, depreciation and amortization and adjusted for acquisition costs and share-based payments

3. Operating profit is adjusted for acquisition costs and share-based payments

For further information please contact:

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

OPERATIONAL REVIEW

Introduction

For the first half period the Group delivered solid growth in a more normalised trading environment against a strong comparative period in the prior year. The marketing industry's march towards digital continues at pace, and while the mix of channel usage ebbs and flows, our omnichannel offering positions us well to capture the full range of opportunities it presents.

The focus in the first half of 2022 has been on cementing our position as one of the leading marketing automation platforms through enhancing the functionality of our Engagement Cloud, deepening our strategic partnerships and hiring exciting talent to build demand across our territories among both new and existing customers.

We continue to be trusted by household names to help them engage with and get closer to their audiences. In the period, we signed Warner Bros, Sunderland Football Club, and the British Dental Association as new customers, and the pipeline for the second half remains healthy.

We continue to invest in product innovation, geographic expansion and strategic partnerships - the three components of our growth strategy - to grow our share of the market while protecting our strong margins. Demand for our platform is growing globally, underpinned by a robust, pureplay SaaS model, which provides high-quality and highly visible recurring revenues.

Current Trading and Outlook

Trading in the first half of the year, which delivered 10% growth and strong profitability, reflects a period of more normalised trading following a spike in one-off pandemic related SMS activity in the prior year. This trend has continued with the emergence from lockdown in EMEA accelerating post period end, and while our core offering has made an encouraging start to the second half, we have seen a further softening of transactional based SMS of which we will see the full impact next financial year.

In addition, we are seeing a lag in US growth due to the impact of a challenging labour market on our pace of recruitment and retention. In the US we have put in place a new management structure and team to support the region, which will start contributing through the second half of the year.

As a result of the above, the Board anticipates revenue for the full year to show growth in the range of 7 - 8%, slightly below current expectations. Whilst our operating margin at the half year is higher than normal levels, we expect this to be in the region of 20 - 22% margin by the end of the year as we accelerate our investment in our teams due to wage inflation and strengthen our international operations. This investment in talent and the actions taken as described above, positions us well for continued revenue growth in the next financial year and beyond.

We appear to be moving away from the worst of the pandemic, yet the acceleration in organisations' adoption of digital marketing triggered is set to endure, and the strength of our platform puts us in an ideal position to benefit from that trend. There remain industry-wide pressures to overcome, but they don't detract from the confidence we have in continuing to make significant strides forward with each period that passes. We continue to grow our presence in key territories around the world, developing a product that meets the changing needs of marketeers while strengthening the organisational infrastructure that underpins it.

Market

The shift from traditional to digital marketing is a long-term trend, dramatically accelerated by the pandemic as organisations quickly grew to rely on digital channels from both a customer retention and acquisition perspective. At the same time, we have seen a marked increase in demand for a more sophisticated approach, as marketeers recognise the step change in ROI possible from developing more targeted and personalised campaigns based on increasingly rich data sets. This is evident in the continued adoption of channels in addition to email, which remains the most widely used means of engagement, and strong growth in functionality recurring revenue seen in the period.

As a result of the pandemic and the increased frequency and depth of engagement, organisations have grown their contact bases, and the audiences now expect a personalised end-to-end experience; a trend that will persist long after Covid-related restrictions ease. We have developed Dotdigital's platform to provide marketeers with everything they need to meet these expectations and more, from highly customisable user experiences to the most advanced analytics on the market, ensuring every campaign and touchpoint is memorable and feeds back data to drive continuous ROI enhancements. 

We continue to see digital marketing grow as a percentage of overall revenue spend and expect to see organisations in those industries worst affected by the pandemic such as travel continue to increase their budgets as they ramp back up.

As the world moves towards a point where there is acceptance of Covid as part and parcel of normal life, organisations will adapt their strategies accordingly, but their reliance on marketing automation will continue to grow apace and the strength of our offering puts us in a strong position to capitalise.

Strategy

The Group's strategy has organic growth at its core, centred around three strategic pillars: international diversification, expanded market reach through partnership relationships, and continuous product innovation.

Geographic expansion

Organic international revenue increased by 4% to £9.7m (H1 2021: £9.3m) in the period, with international sales contributing 31% to total revenue (H1 2021: 33%).

EMEA

EMEA showed solid revenue growth of c.10% in the period to £23.6m (H1 2021: £21.5m).

The Group continues to see growing demand in the region for its omnichannel capability, as marketeers increase their focus on relevancy and personalisation to provide the best possible customer experience. As international travel is now opening, our teams have started to meet customers face to face and build further pipeline through the partner and sales teams.

People was a major focus in EMEA across the period. We continued to: invest in our customer success team, which is already having a tangible, positive impact on retention; strengthen our partnership team to deepen relationships and drive greater reach into their respective customer bases; and broaden our agency and technology partner ecosystem, helping to build 'top of funnel' lead generation demand.

North America

Revenues from North America grew organically by c.3% to $6.5m (H1 2021: $6.3m).

The recruitment of talent and expanding the employee base is key to improving growth rates within the region. In a challenging labour market with high levels of wage inflation, the Directors continue to focus on strengthening the management team in the region, most recently with the hire of a new VP of Growth and VP of Customer Success. Whilst investment in management bandwidth will take time to flow through to the financial results, this provides us with the right structure to support future growth. With the addition of more customer success specialists to support growth and consultants to help drive increased uptake of our platform from upper-tier mid-market companies and larger enterprises, and plans to further strengthen our senior team, our prospects for the territory remain strong.

APAC

APAC revenue grew organically by c.27% to AUS$4.4m (H1 2021: AUS$3.5m).

The Group's Japan office is now operational and uptake of the platform in Singapore has been encouraging. The Group has continued to develop its presence in Australia despite the challenges posed by lockdowns. As our newest region, the focus in APAC continues to be building our teams on the ground, deepening relationships with strategic partners, and driving brand awareness.

The Group continues to navigate various cost pressures, particularly regarding hiring, across all regions but is confident of actions being taken by management to support the Group's geographic expansion strategy in the second half and beyond.

Strategic partnerships

The Group continues to broaden and deepen its partnership relationships, amplifying the Group's market reach beyond its direct sales channel.

A strategic technology partner for the Group is defined as a partner where our customer using that technology integration has the potential to represent or accounts for 10% of Group revenue. This strategic partnership model is complemented by a broader general partner referral network which includes over 200 active global partners. A core focus of the strategic partnership network is forging connectors into both ecommerce and CRM platforms, with the aim of building brand awareness as we push out into international markets.

Sales through connectors into our strategic partners increased by 9% to £13.9m (H1 2021: £12.8m). Magento connector revenue grew 6%, Shopify connector revenue grew by 47% and MS Dynamics connector revenue grew by 3% compared to the same period in the previous year.

While the Group works through pressures in the US, it continues to build on its work with its strategic partners, both in the ecommerce and CRM platform space, to drive brand awareness across their customer bases through joint go to market plans. In H1, the Group increased its investment in adding new channel managers into its international operations, building on the strong relationships it has with its agency and technology partners that operate within the ecosystem.

The pipeline continues to build as we move through the second half, with the Group now also exploring opportunities to expand its strategic partner base and further diversify its revenues into areas such as service clouds, as is evident with the recent Zendesk Sell integration.

Product innovation

The Group's growth is supported by a focussed R&D investment programme which continues to drive value for both our new and existing customers. Recurring revenue from enhanced product functionality and upgrades increased 22% to £10.8m. The key areas of investment for the Group remain: enhancing our customer data and experience platform capabilities; data visualisations through reporting and analytics; deeper integrations with new and existing technology partners; and our user experience of the platform.

During the period we invested £3.4m in R&D, underpinning management's commitment to continuous product innovation. Our focus for product innovation centres around the key areas of:

· Data and intelligence - joining all data together to create a single customer view and help our customers better personalise their campaigns and be relevant

· Marketing automation - harnessing artificial intelligence (AI) and machine learning across targeted parts of the platform's architecture, informed by our customers' needs and requirements to give efficiencies to time-poor marketeers

· Building out further omni-channel functionality to Engagement Cloud to assist businesses through the full customer journey at every touch point they have with their customers

During the period we introduced single customer view, giving marketeers and merchants a holistic, real-time view of their customer data and interactions. We also released new program analytics and reporting, empowering marketeers to optimise their customer journeys. New segment analytics provide our customers additional insight into marketing and commerce audiences, and we were the first to market with a toolkit to help customers mitigate the impact of iOS 15 and mail privacy protections. We also, developed new data integrations with Zoom Webinar, Zendesk Sell, Oracle Netsuite and Shopware 6, expanding our addressable market and providing customers with greater functionality.

M&A

To support the Group's organic growth strategy, the Board continues to evaluate the market for complementary acquisitions, backed by the Group's robust financial position. The Board's acquisition strategy is focused on set criteria, being: synergy technology for new revenue streams; bolt-on functionality to accelerate platform development, new talent acquisition and the expansion of expertise, and extension of the customer base in strategic territories.

People

Our success to date is solely down to the highly talented team we have built at Dotdigital. We have built a special culture around empowering colleagues to make decisions, recognising that everyone plays an important role in helping us reach our growth ambitions and giving them the freedom to express themselves. The togetherness this creates has again paid dividends in the first half, as we continued to meet challenges head on while driving the business forwards. On behalf of myself and the Board I would like to thank everyone at Dotdigital for their continued hard work and dedication.

As announced on 25 February 2022, Chief Financial Officer Paraag Amin has informed the Board of his intention to step down as an Executive Director of the Company, effective as of 31 March 2022. The Company has appointed Spencer Stuart to conduct a formal search process will update shareholders in due course. We thank Paraag for his valuable contribution and wish him well in his future endeavours.

To continue to grow and increase our presence around the world, we need to continue to hire and retain exceptional individuals and invest in our talent. We have continued to bolster our product development teams and sales teams while bringing in highly experienced customer success professionals and continue to work hard to attract more senior talent to help us realise our vision.

FINANCIAL REVIEW

Revenue

Revenue during the period grew 10% to £30.9m from £28.2m in H1 2021. This performance was driven primarily by new customer wins and existing customer growth.

Recurring revenue represents c.94% of revenues, improving visibility on future revenues. Enhanced functionality revenue (which includes licence fees and bolt-on functionality) grew 22% to £10.8m from £8.9m in H1 2021.

International revenue was 31% of total sales in the period, from 33% in H1 2021. Of that, revenues were up 3% in the US to $6.5m (H1 2021: $6.3m), and up 27% in APAC to AUS$4.4m (H1 2021: AUS$3.5m). EMEA revenues grew 10% in the period to £23.6m (H1 2021: £21.5m).

During the period ARPC3 increased by 19% to £1422 per month (H1 2021: £1196 per month).

EBITDA

We achieved an adjusted EBITDA1 margin of 40% and an adjusted operating profit margin of 29% in the first half, which was in line with management expectations. The adjustments include a share-based payment charge of £0.22m and exceptional costs of £0.06m.

Balance Sheet & Cash Position

Dotdigital continues to generate strong cash flow from its Engagement Cloud operations with an interim period end net cash balance of £40.0m.

The Group continues to prioritise product development and during the period spent £3.4m on development (compared to £3.1m in H1 2021).

Dividend Policy

A dividend of 0.86p per ordinary share (2021: 0.83p) was proposed by the Company at the time of its Final Results in November last year, demonstrating a commitment from the Board to deliver value by focusing on total shareholder return. This dividend was approved by shareholders at the Annual General Meeting on 22 December 2021 and paid on 31 January 2022.

The Group will continue to conduct a full dividend review at year end; therefore, in line with previous years the Board is not proposing an interim dividend.

Dotdigital Group Plc

Consolidated Income Statement

For the six months ended 31 December 2021

Restated*

6 months

6 months

12 months

to 31 Dec 2021

to 31 Dec 2020

to 30 June 2021

Unaudited

Unaudited

Audited

Note

£'000s

£'000s

£'000s

Continuing operations

Revenue from contracts with customers

4

30,911

28,226

58,124

Cost of sales

(5,541)

(5,067)

(10,356)

Gross profit

4

25,370

23,159

47,768

Administrative expenses

(16,470)

(15,583)

(34,089)

Share based payments

(222)

(344)

(625)

Exceptional costs**

(60)

(68)

(188)

Operating profit from continuing operations

8,618

7,164

12,866

Finance income

16

16

20

Finance costs

(30)

(41)

(74)

Profit before income tax from continuing operations

8,604

7,139

12,812

Income tax expense

(1,825)

(815)

(1,322)

Profit for the period from continuing operations

6,779

6,324

11,490

Discontinuing operations

Loss for the period from discontinued operations

-

(424)

(899)

Profit for the period attributable to the owners of the Company

6,779

5,900

10,591

Earnings per share from all operations (pence per share)

Basic

6

2.27

1.98

3.55

Diluted

6

2.23

1.95

3.50

Adjusted basic

6

2.36

2.11

3.82

Adjusted diluted

6

2.32

2.08

3.76

Dotdigital Group Plc

Consolidated Statement of Comprehensive Income

For the six months ended 31 December 2021

Earnings per share from continuing operations (pence per share)

Basic

6

2.27

2.12

3.85

Diluted

6

2.23

2.09

3.79

Adjusted basic

6

2.36

2.26

4.12

Adjusted diluted

6

2.32

2.22

4.06

Earnings per share from discontinued operations (pence per share)

Basic

6

-

(0.14)

(0.30)

Diluted

6

-

(0.14)

(0.30)

Adjusted basic

6

-

(0.14)

(0.30)

Adjusted diluted

6

-

(0.14)

(0.30)

Dotdigital Group Plc

Consolidated Statement of Comprehensive Income

For the six months ended 31 December 2021

6 months

Restated*

6 months

12 months

to 31 Dec 2021

to 31 Dec 2020

to 30 June 2021

Unaudited

Unaudited

Audited

note

£'000s

£'000s

£'000s

Profit for the period

6,779

5,900

10,591

Other comprehensive income

Items that may be subsequently reclassified to

profit and loss:

Exchange differences on translating foreign operations

29

(79)

(87)

Total comprehensive income attributable to:

Owners of the parent

4

6,808

5,821

10,504

Total comprehensive income for the year

Comprehensive income from continuing operations

6,808

6,245

11,403

Comprehensive income from discontinued operations

-

(424)

(899)

Dotdigital Group Plc

Consolidated Statement of Financial Position

For the six months ended 31 December 2021

Restated*

Note

As at

As at

As at

 31 Dec 2021

31 Dec

2020

30 June

2021

Unaudited

Unaudited

Audited

£'000s

£'000s

£'000s

Assets

Non-current assets

Goodwill

9,680

9,680

9,680

Intangible assets

16,749

14,893

16,134

Property, plant and equipment

639

722

649

Right-of-use asset

2,983

3,805

3,323

30,051

29,100

29,786

Current assets

Trade and other receivables

12,838

13,253

13,350

Cash and cash equivalents

40,035

27,556

31,951

52,873

40,809

45,301

Total assets

4

82,924

69,909

75,087

Equity attributable to the owners of the parent

Called up share capital

8

1,494

1,493

1,494

Share premium

7,124

6,967

7,124

Reverse acquisition reserve

(4,695)

(4,695)

(4,695)

Other reserves

3,829

2,087

3,066

Retranslation reserve

(8)

(29)

(37)

Retained earnings

60,863

50,883

54,081

Total equity

68,607

56,706

61,033

Dotdigital Group Plc

Consolidated Statement of Financial Position

For the six months ended 31 December 2021

Restated*

As at

As at

As at

31 Dec 2021

 31 Dec 2020

30 June 2021

Unaudited

Unaudited

Audited

£'000s

£'000s

£'000s

Liabilities

Non-current liabilities

Lease liabilities

2,174

2,885

2,489

Deferred tax

1,451

1,365

1,207

3,625

4,250

3,696

Current liabilities

Trade and other payables

9,739

7,830

9,334

Lease liabilities

902

1,031

934

Current tax payable

51

92

90

10,692

8,953

10,358

Total liabilities

14,317

13,203

14,054

Total equity and liabilities

82,924

69,909

75,087

Dotdigital Group Plc

Consolidated Statement of Changes in Equity

For the six months ended 31 December 2021

Share

Share

Retained

Other

Reverse

Re-translation

Total

capital

premium

Earnings

reserves

acquisition

Reserve

reserve

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

As at 1 July 2020 as previously stated

1,493

6,967

45,514

1,372

(4,695)

50

50,701

Impact of correction of errors (note 11)

-

-

141

228

-

-

369

Restated as at 1 July 2020

1,493

6,967

45,655

1,600

(4,695)

50

51,070

Profit for the period

-

-

5,900

-

-

-

5,900

Retranslation reserve

-

-

-

-

-

(79)

(79)

Dividends

-

-

(950)

-

-

-

(950)

Reserve Transfer

-

-

278

(278)

-

-

-

Deferred tax on share options

-

-

-

421

-

-

421

Share based payments

-

-

-

344

-

-

344

As at 31 December 2020

1,493

6,967

50,883

2,087

(4,695)

(29)

56,706

As at 1 January 2021

1,493

6,967

50,883

2,087

(4,695)

(29)

56,706

Profit for the period

-

-

4,691

-

-

-

4,691

Dividends

-

-

(1,522)

-

-

-

(1,522)

Retranslation reserve

-

-

-

-

-

(8)

(8)

Issue of share capital

1

157

-

-

-

-

158

Reserve Transfer

-

-

29

(29)

-

-

-

Deferred tax on share options

-

-

-

727

-

-

727

Share based payments

-

-

-

281

-

-

281

As at 30 June 2021

1,494

7,124

54,081

3,066

(4,695)

(37)

61,033

As at 1 July 2021

1,494

7,124

54,081

3,066

(4,695)

(37)

61,033

Profit for the period

-

-

6,779

-

-

-

6,779

Dividends

-

-

-

-

-

-

-

Retranslation reserve

-

-

-

-

-

29

29

Reserve transfer

-

-

3

(3)

-

-

-

Deferred tax on share options

-

-

-

544

-

-

544

Share based payments

-

-

-

222

-

-

222

As at 31 December 2021

1,494

7,124

60,863

3,829

(4,695)

(8)

68,607

Dotdigital Group Plc

Consolidated Statement of Changes in Equity

For the six months ended 31 December 2021

Dotdigital Group Plc

Consolidated Statement of Cash Flows

For the six months ended 31 December 2021

6 months

6 months

12 months

to 31 Dec 2021

to 31 Dec 2020

to 30 June 2021

Unaudited

Unaudited

Audited

note

£'000s

£'000s

£'000s

Cash flow from operating activities

7

13,258

7,944

17,969

Tax paid

(1,075)

(982)

(975)

Net cash generated from operating activities

12,183

6,962

16,994

Net cash used in continuing operating activities

12,183

7,534

20,710

Net cash used in discontinuing operating activities

-

(572)

(3,716)

Cash flow from investing activities

Purchase of intangible fixed assets

(3,439)

(3,147)

(6,870)

Purchase of property, plant and equipment

(162)

(57)

(169)

Proceeds from sale of property, plant and equipment

-

-

2

Interest received

16

16

20

Net cash used in investing activities

(3,585)

(3,188)

(7,017)

Net cash used in continuing investing activities

(3,585)

(3,188)

(7,017)

Net cash used in discontinuing investing activities

-

-

-

Cash flows from financing activities

Equity dividends paid

-

(950)

(2,472)

Payment of leasing liabilities

(543)

(572)

(1,182)

Proceeds from share issues

-

-

158

Net cash used in financing activities

(543)

(1,522)

(3,496)

Net cash used in continuing financing activities

(543)

(1,492)

(3,446)

Net cash used in discontinuing financing activities

-

(30)

(50)

Increase in cash and cash equivalents

8,055

2,252

6,481

Cash and cash equivalents at beginning of period

31,951

25,383

25,383

Effect of foreign exchange rate changes

29

(79)

87

Cash and cash equivalents at end of period.

40,035

27,556

31,951

Dotdigital Group Plc

Notes to interim financial statements

For the six months ended 31 December 2021

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 International Financial Reporting Standards ("IFRS") as adopted by the UK 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 2021. The interim financial information for the six months to 31 December 2021, which complies with IAS 34 'Interim Financial Reporting' has been approved by the Board of Directors on 3 March 2022.

The unaudited interim financial information for the period ended 31 December 2021 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 2021 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 2021, as described in those financial statements.

Dotdigital Group Plc

Notes to interim financial statements

For the six months ended 31 December 2021

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 and by business activity, this being core Dotdigital and CPaaS as shown below:

Geographical revenue and results (from all operations)

Dotdigital Group Plc

Notes to interim financial statements

For the six months ended 31 December 2021

4. SEGMENTAL REPORTING (CONTINUED…)

12 months to 30 June 2021

EMEA

US

APAC

Operations

Operations

Operations

Total

£'000s

£'000s

£'000s

£'000s

Income statement

Revenue

47,024

9,264

4,262

60,550

Gross profit

36,878

8,241

3,864

48,983

Profit/(Loss) before income tax

11,699

609

(294)

12,014

Total comprehensive income

attributable to the owners of the parent

10,436

379

(311)

10,504

Financial position

Total assets

71,566

3,098

423

75,087

Net current assets/(liabilities)

33,942

1,387

(386)

34,943

6 months to 31 December 2021

Core

CPaaS

Total

£'000s

£'000s

£'000s

Income statement

Revenue

30,911

-

30,911

Gross profit

25,370

-

25,370

Profit/(Loss) before income tax

8,604

-

8,604

Total comprehensive income attributable to the owners of the parent

6,808

-

6,808

Financial position

Total assets

82,882

42

82,924

Net current assets/(liabilities)

42,213

(32)

42,181

Dotdigital Group Plc

Notes to interim financial statements

For the six months ended 31 December 2021

Restated 6 months to 31 December 2020

Core

CPaaS

Total

£'000s

£'000s

£'000s

Income statement

Revenue

28,226

1,522

29,748

Gross profit (restated see note 11)

23,159

221

23,380

Profit/(Loss) before income tax

7,139

(424)

6,715

Total comprehensive income attributable to the owners of the parent (restated see note 11)

6,245

(424)

5,821

Financial position

Total assets

67,069

2,840

69,909

Net current assets (restated see note 11)

31,088

768

31,856

12 months to 30 June 2021

Core

CPaaS

Total

£'000s

£'000s

£'000s

Income statement

Revenue

58,124

2,426

60,550

Gross profit

47,768

1,215

48,983

Profit/(Loss) before income tax

12,812

(798)

12,014

Total comprehensive income attributable to the owners of the parent

11,403

(899)

10,504

Financial position

Total assets

74,976

111

75,087

Net current assets

34,974

(31)

34,943

Dotdigital Group Plc

Notes to interim financial statements

For the six months ended 31 December 2021

Reconciliations to earnings figures used in arriving at adjusted earnings per share are as follows:

6 months to 31 December 2021

6 months

to 31 December 2020

12 months to 30 June 2021

From all operations

£'000s

£'000s

£'000s

Profit for the year attributable to the owners of the parent

6,779

5,900

10,591

Amortisation of acquisition-related intangible fixed asset

60

60

120

Other exceptional costs

-

8

68

Share-based payment

222

344

625

Adjusted profit for the year attributable to the owners of the parent

7,061

6,312

11,404

Adjusted profit for the year attributable to the owners of the parent from:

Continuing operations:

7,061

6,736

 12,303

Discontinuing operations:

-

(424)