Last checked at 7 Apr 2009 07:00
Date: 7 April 2009
On behalf of: Digital Marketing Group plc ("DMG", "the Group" or "the Company")
Embargoed for: 0700hrs
Digital Marketing Group plc
Trading Update
Digital Marketing Group plc (AIM: DIGI), the digital marketing specialist, is pleased to announce that despite challenging market conditions profit before tax (before charges for share options and amortisation) for the year ended 31 March 2009 is expected to be in line with market forecasts at approximately £8m. This would represent an increase of over 25% on the previous year.
The Group has begun to see some clients' spend levels tighten and has experienced delays in a number of projects, particularly over the last few months. However, the Group believes it will continue to benefit from the overriding trend towards digital media and digital channels which appears to be accelerating as a result of the recession. Furthermore the Company maintains a flexible cost base and has made the necessary internal adjustments required to deal with current market conditions.
The business continues to be cash generative and continues to enjoy a strong financial position, having generated over £8m of cash flow from operating activities enabling the Company to reduce its net debt to £6.5m at the year end.
The Group will announce Preliminary Results for the year ended 31 March 2009 on 6 July 2009.
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Enquiries:
| Digital Marketing Group plc | www.digitalmarketinggroup.co.uk |
| Ben Langdon, Chief Executive | via Redleaf Communications |
| Redleaf Communications | DMG@redleafpr.com |
| Paul Dulieu/Kathryn Hurford | Tel: 0207 566 6700 |
| Cenkos Securities | |
| Ivonne Cantu/Julian Morse | Tel: 0207 397 8900 |
Notes to Editors:
"organic growth" - driven by the inherent growth within the acquired businesses and the application of a group business development programme
"buy and build" - through the acquisition of a number of well run and profitable businesses with complementary skills in digital direct marketing; and
the creation of new revenue streams from within the existing talents and resources of the group.
Publication quality photographs are available via Redleaf Communications.